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Wind turbine maker Suzlon Energy plans to partially replace high cost rupee debt worth about Rs 9,000 crore with less expensive foreign funds in the current fiscal to rebalance its capital structure.
Suzlon, which has completed its operational restructuring efforts, is also betting on improved business conditions to bolster its fortunes.
"We expect to complete financial restructuring this fiscal... We are looking to re-balance the capital structure," Suzlon Group Head of Finance Kirti Vagadia told reporters over the weekend.
At the end of the April-June quarter, the company's consolidated net debt stood at Rs 14,882 crore.
Vagadia said Suzlon is looking to partly replace the high cost local debt with less expensive foreign funds. The plan is to partially replace rupee debt with euro debt.
Suzlon's rupee debt is around Rs 9,000 crore. Describing the current fiscal as a "turnaround year", Vagadia said the emphasis would be on three aspects -- ramping up volumes, optimising capital structure and focusing on business efficiencies.
"Suzlon is well positioned to capitalise on Indian market opportunities," he said.
The company has an order book of $7 billion. Further, Vagadia said that revenues from the company's service business are growing with stable margins.
In the current financial year, revenues from service business is expected to touch Rs 2,700 crore, he noted.
Every MW of capacity installed provides about 20 years of service income potential.
Out of 25 GW of actual installations done by Suzlon, more than 90 per cent capacity comes under service contracts.
The wind turbine maker saw its net loss narrow to Rs 750.74 crore in the three months ended June 2014, helped by higher income.
It had a net loss of Rs 1,058.90 crore in the same period a year ago. The figures are after taking into account the share in minority interest.
In the first quarter (ended June) of current fiscal, the firm's total income climbed to Rs 4,671.99 crore from Rs 3,896.71 crore in the year-ago period, reflecting an increase of about 20 per cent.
Suzlon Energy Chairman Tulsi Tanti said last month: "The recent Union Budget includes several policy measures which will have a positive impact on the wind energy sector in India.
"Suzlon is well positioned to tap these opportunities by leveraging on its strengths. We stand committed to build on our technological edge and offer new age products and best in class services."
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