Business Analysis - Suzlon Energy | NSE:SUZLON | FY2024

Qualitative Fundamental Analysis of Suzlon Energy share for future growth potential (based on the Annual Report FY2024)

Get a sense of the Suzlon Energy's business activities, by understanding its values, business and risks.

YouTube video: https://youtu.be/_b9Km8N3Y4I

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Disclaimer:
We are not SEBI RIAs. This presentation is not an investment advice. It is only for study and reference purposes.

1. Suzlon Energy
Business
Analysis
FY 2024

2. Suzlon Energy
NSE: SUZLON | BSE: 532667| Sector: Electric Equipment
BUSINESS ANALYSIS
FY 2024
Business Analysis

3. Business Analysis
FY 2024
Historical Price Chart / with Quarterly Sales & TTM EPS
Source: Screener.inFeb’2020 -Feb’2025
Sales
TTM EPS

4. Global R&D Centres
Company Introduction
(As of Q1 FY25 -Annual Report FY2024)
Established in 1995, Suzlon Energyis a
leading global renewable energy solutions
provider
Vertically integrated. 8 R&D centers
around the world, and 14 manufacturing
facilities in India.
Product portfolio ofWind Turbines led by
the 2 MW and 3 MW series. Also provides
Operations & Maintenance Servicesfor
Wind Turbines.
20.8 GW wind energy capacityinstalled
across 17 countries
6400+ Employee workforce

5. Business Analysis
FY 2024
Values
VisionBe the bestrenewable company in the
world
Work towards thesustainable, social,
economic and ecological development
Create a better life for future
generations
Powering a greener tomorrow
Leaving a greener planetfor
generations to come.
MissionDeliver utility, scale, best-in-class,
end-to-end integratedrenewable
energy solutions to our customers
Focus on High Volume and Profitable
markets
Focus on Wind-Solar Hybrid utility
scale solutions
Deliver best-in-class value added
serviceglobally

6. Business Analysis
FY 2024
Values…
Objectives
Continuously reduce ‘Levelized Cost of Energy’ (LCoE)
Regional Manufacturingwith global sourcing
End-to-end IntegratedEnergy Solutions Provider
Asset-Light, Debt-LightBusiness Model
Create customer centric and performance orientedorganisation
Levelized Cost of Energy (LCoE)is the
average cost of generating electricity
over a period of time.

7. Business Analysis
FY 2024
Business
Business Analysis
FY 2024

8. Business Analysis
FY 2024
Business / Segments
Operating Segments:
1. Sale of Wind Turbine Generators
(WTGs)
2. Operations & MaintenanceService
(OMS)
3. Foundry & Forgingof components
4. Others-Power Generation, etc.
Segment-wise Revenue : FY 2024
₹ 4200 Cr
(65%)
₹ 1983 Cr
(31%)
₹ 307 Cr
(5%)
₹ 7 Cr (0%)
Sale of WTGsOMS Foundry & ForgingsOthers
Total Revenue
₹ 6,497 Crore
‘Sale of WTGs’ segment also includes Allied activities like sale/sub-
lease of land & project execution.

9. Business Analysis
FY 2024
Business / Subsidiaries
FY24 Revenue: ₹ 2261 Cr
Net Profit: ₹ 630 Cr
Operations & Maintenance
Services (OMS) & Project
Business
Suzlon Global
Services Ltd(SGSL)
Wholly-owned subsidiary
FY24 Revenue: ₹ 483 Cr
Net Profit: ~₹ 7 Cr
Forging and Foundry-
Casting & Forging-Metal
and metal products
SE Forge Ltd
Wholly-owned subsidiary
FY24 Revenue: ₹ 99 Cr
Net Loss: ₹ -12 Cr
Real Estate-Land Business
Real estate activities with
own or leased property
Suzlon Gujarat Wind
Park Ltd(SGWPL)
Wholly-owned subsidiary
Major Subsidiaries:

10. Business Analysis
FY 2024
Business / Products & Services
Wind Energy Equipment & Solutions
Provides Wind Turbine Generators (WTGs) that are
infused with state-of-the-art technology from their
blades, nacelle, towers and foundations.
Offers a diverse range of wind turbines spanning from
2.1 MW to 3.15 MWfeaturing varying rotor diameters
and tower heights tailored to diverse wind regimes
Also includes solutions designed for integrating various
renewable energy sources.
Nacelle
Blades
Tower
Foundation

11. Business Analysis
FY 2024
Business / Products & Services
-Annual Report FY2024
Product Evolution:
AEP: Annual Energy Production

12. Business Analysis
FY 2024
Business / Products & Services
Wind Energy Services Asset Management Capabilities: India:
$10 BnAssets Under Management
1900+ Customers
9800+Wind Turbines (94 Sites)
3700+ Service Professionals
Range of services to ensure consistent
performance for the wind turbines
throughout the project lifecycle
~14.8 GW of domestic wind energy
assets -India’s largest wind energy
service portfolio
~6 GWof installedcapacity outside
India.

13. Business Analysis
FY 2024
Multi Brand O&M Services :
Many wind farm owners have deployed wind
turbines from various OEMs, which require lifelong
maintenance.
Opting for a single service providerensures cost
efficiency and enhanced performance.
Suzlon Services
A Wind Energy service company-Providesmulti-
make wind turbine Operations & maintenance
(O&M)
Diversified portfoliofrom 225 kW to 3.x MW,
29 years of expertise,
3,500+ service professionals
Comprehensive solution for multi-make turbines
-Offers maintenance, repairs, and technical
support for diverse Wind Turbine fleets
Business / Products & Services

14. Business Analysis
FY 2024
Business / Products & Services
Climbing
System
Assisted climbing toolfor engineers for climbing turbine towers.
Ensures a safer and faster way to reach the nacelle of the wind turbine.
facilitates the carrying of tools.
Quick
Sense
Sensor that identifies the wind direction, with enhanced resolution and
accuracy
Leads to better alignment of the nacelle to the wind direction, increasing the
Annual Energy Production (AEP).
SC TrinityNext-generation, advanced, in-house developed SCADA (Supervisory Control
and Data Acquisition) application
Enables viewing real-time performance of Wind Turbine Generators (WTGs)
fleet. Enhances performance.
Value-Added Services & Products :Technology-driven services and innovative products :

15. Business Analysis
FY 2024
DENMARK
THE NETHERLANDS
GERMANY
GERMANY
INDIA
INDIA
INDIA
INDIA
Business / R&D
Has key research
centresin Denmark,
Germany, the
Netherlands, and
India >>
“Increase in market competition, lower tariffs, and the
availability of cheaper sources of power like solar energyhas
made it necessary for the wind turbine manufacturers to focus
and invest more in R&D, and product innovation.”
Research centres and their focus areas

16. Business Analysis
FY 2024
Business / Capacity
3150 MWManufacturing Capacity
Ramp up/ramp down capacity:
-Capacity of 3150 MW is for 2.1 MW WTGs
-With 3+ MW WTGs, capacity can be
ramped up to 4500 MW in phased manner
6400+ Employees
14 Manufacturing locations in India
SE Forge:Castings 1,20,000 MT/year,
Forgings: 42,000 Rings/year

17. Business Analysis
FY 2024
Business / Customers
Industries served
Has partnered with 1,900+ customers
acrossIPPs, large corporates, and
PSUs,including ONGC, GAIL, IPCL, etc.
Enabled Wind Energy adoption
through partnerships withindustry
bodies and municipal corporations
High proportion of Commercial &
Industrial (C&I) customers
OMS Customer Segments:
1. Independent Power Producers (IPPs)
2. Large corporates
3. PSU/Government
4. Retail customers
SE Forge(Subsidiary) supplies fully
finished castings and forgings to some of
the biggest global OEMs of Wind
Turbines, Power Generation, Oil & Gas,
Transportation, Construction, Aerospace
and Heavy Machinery.

18. Business Analysis
FY 2024
Business / Geographies
FY24 Revenue by Geography
Geography % ShareRevenue (₹ Cr)
India 94.4% 6132
Europe 1.2% 79
USA 1.5% 97
Others 2.9% 189
Total 6497
₹ 6132 Cr
(94%)
₹ 79 Cr
(1%)
₹ 97 Cr
(1%)
₹ 188 Cr
(3%)
IndiaEuropeUSAOthers
Total Revenue
₹ 6,497 Crore

19. Business Analysis
FY 2024
Business / Geographies : India
2.2
1.5
1.1
2.3
3.3
0.4
0.1
0.5 0.5
0.9
0
0.5
1
1.5
2
2.5
3
3.5
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Wind Capacity GW
Wind Energy Installations
All IndiaBy Suzlon
Wind Energy installations (June-2024):
•All India cumulative installation: 46.7 GW
•Suzlon installed base: 14.8 GW
•32% Cumulative market share
•27% market share in FY24 installations

20. Business Analysis
FY 2024
Business / Revenue
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Revenue 2933 3295 6520 5947 6497
PAT -2626 -705 -249 167 714
Net Finance Cost 1340 976 712 401 126
2933
3295
6520
5947
6497
-2626
-705
-249
167
714
1340
976
712
401
126
-4000
-2000
0
2000
4000
6000
8000
₹ Crore
Revenue & Profit-After-Tax : FY20 to FY24
RevenuePATNet Finance Cost
Net loss has
turned to net
profitover the
last five years, as
the finance costs
have gone down
due to the debt-
reduction
measures
undertaken by
the company
Analysis:

21. Business Analysis
FY 2024
Business / Segment Result
Segments
₹ 70 Cr
(8%)
₹ 739
Cr
(88%)
₹ 27 Cr
(3%)
₹ 4 Cr
(0%)
Result
Results: before exceptional items, Interest & Taxes
1. Sale of Wind Turbine Generators (WTGs)
Gross Margin : 1.7%
2. Operations & Maintenance Service (OMS)
Gross Margin : 37%
3. Foundry & Forging of Components
Gross Margin : 8.7%
4. Others-Power Generation, etc.
Gross Margin : 59%
₹ 4200
Cr
(65%)
₹ 1983
Cr
(31%)
₹ 307
Cr (5%)
₹ 7 Cr
(0%)
Revenue
Total: ₹ 6,497 Crore Total: ₹ 839 Crore
Segment-wise Revenue & Results : FY 2024

22. Business Analysis
FY 2024
₹ 70 Cr
(8%)
₹ 739
Cr
(88%)
₹ 27 Cr
(3%)
₹ 4 Cr
(0%)
Result
₹ 839 Crore
₹ 4200
Cr
(65%)
₹ 1983
Cr
(31%)
₹ 307
Cr (5%)
₹ 7 Cr
(0%)
Revenue
₹ 6,497 Crore
3971
1348
479
14
1367
2593
427
1270112
Liabilities
₹ 3,259 Crore
Assets
₹ 7,179 Crore
Business / Segment Analysis

23. Business Analysis
FY 2024
₹ 70 Cr
(8%)
₹ 4200 Cr
(65%)
₹ 3971 Cr
(55%)
₹ 2593 Cr
(80%)
Result
WTG Sales:
55% of Assets, 80% of Liabilities,
65% of Revenue, 8% of Result
2% Gross margin
2% Result-on-segment-assets
Revenue
LiabilitiesAssets
Business / Segment Analysis

24. Business Analysis
FY 2024
₹ 1983 Cr
(31%)
₹ 427 Cr
(13%)
₹ 1348 Cr
(19%)
₹ 739 Cr
(88%)
ResultRevenue
LiabilitiesAssets
Business / Segment Analysis
WTG Sales:
55% of Assets, 80% of Liabilities,
65% of Revenue, 8% of Result
2% Gross margin
2% Result-on-segment-assets
O&M Services:
19% of assets, 13% of liabilities,
31% Revenue, 88% of Result
37% Gross margin
55% Result-on-segment-assets

25. Business Analysis
FY 2024
₹ 3971
Cr
(55%)
₹ 1348
Cr
(19%)
₹ 2593
Cr
(80%)
₹ 427
Cr
(13%)
₹ 70 Cr
(8%)
₹ 739
Cr
(88%)
Result
₹ 4200
Cr
(65%)
₹ 1983
Cr
(31%)
Revenue
LiabilitiesAssets
Sale of
WTGs
O&M
Services
Assets 55% 19%
Liabilities 80% 13%
Revenue Share 65% 31%
Result Share 8% 88%
Result Margin ~2% 37%
Result-Over-
Segment Assets
~2% 55%
►Asset-heavy & low-margin WTG Sales
segment complements high-margin OMS
segment.
Business / Segment Analysis

26. Business Analysis
FY 2024
Business / Orders
Order Book
Healthy order book of 3.8 GW(June-2024)
Is working on executing the order pipeline
across various customer segments
The increase in tariffs around viable level of
₹3 per unitprovides confidence for step-up in
wind turbine installation & commissioning.
₹

27. Business Analysis
FY 2024
Business / Risks & Challenges
Technology risk
In-house technology and design capabilities
Productportfolio specific for the Indian market
with low wind conditions.
Works consistently towardsperformance
improvement and cost reductionacross
components and bringing efficiencyin the overall
project lifecycle.
Supply chain risk
Critical components like gearboxes, bearings,
generators, converters, towers and blades
have long ramp-up durations, limiting agility.
Strong focus on thelocalization and
standardizationof the supply chain
Efforts to reduce the pressure on the supply
chain by developing alternative vendorsand
securinglong term commitments.

28. Business Analysis
FY 2024
Business / Risks & Challenges
Project execution risk
India's wind industry has struggled with
project execution due to delaysin
arranging land and statutory approvals,
resulting in cost and time overruns.
Other associated risks include-no on-time
availability of grid capacity for evacuation,
unavailability of suitable land resources, no
on-time availability of cranes for
installations and timely execution.
Poor financial position of Discoms
Suzlon's customer base has a high proportion of
C&I customers. Hence, a poor financial position
of the distribution companies would have
limited impact.

29. Business Analysis
FY 2024
Policy Challenges
During FY18 to FY21, Indian wind energy industry
faced significant challenges due to the transition
from the feed-in tariff (FIT) regime to competitive
bidding
It led to reduced volumes and shrinking margins
and heavily impacted the Company’s profitability.
However, since FY21, the company has begun to
see gradual improvements in its financial and
operational performance.
Measures
Strategic initiativestaken by the Company to
become debt free and to return to a more stable
financial footing-
-Debt restructuring
-Refinancing
-Capital raising efforts(Rights issue and QIP)
These steps have improved the financial flexibility
of the Company positioning it among the preferred
suppliers to wind turbine customers in India.
Business / Risks & Challenges
₹
Net Debt: ₹ (276.60) Cr
Net debt to equity : (0.07)

30. Business Analysis
FY 2024
Business / Strengths
Business model of end-to-end offeringsfor
the Wind Energy value chain,
Fully integrated supply chain,
History of project execution,
Best-in-classservice
Competitive Edge
One of the world’s most vertically integratedwind
turbine manufacturers
Manufacturing capabilities for all key components
of a wind turbine generator-including blades,
nacelles, control panels, hubs, and tubular towers
Ensures consistency and reliabilitythroughout the
turbine's value chain
Supply Chain Mgmt& Manufacturing
“”
Operating Profit Margin: ~16%
Net Profit Margin: ~11%

31. Business Analysis
FY 2024
Annexure
Important Notice
•The author is not a SEBI registered investment advisor. This
presentation is not an investment advice. It is only for study
and reference purpose.
•This presentation is not produced or sponsored by the
company being analysed. It is an independently produced
item of academics.
•The company logo, any other images and audio are the
property of their respective copywrite owners. They are used
only for making the presentation more effective.
•All the information as well as statements presented in this
exhibit is extracted from the sources, like company’s website
and Annual Report, etc. The author of this presentation will
not be responsible for truthfulness and accuracy of the same.
•All the forward looking statements are extracted from
company’s Annual Report, Con-call Transcripts, etc. The
author of this presentation will not be responsible for non-
realisation of the same.
Sources
•Suzlon Energy Annual Report FY 2024 (14-Aug-2024)
•https://www.suzlon.com/
•https://www.flaticon.com/
•https://www.mapchart.net/

32. End of Presentation

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34. Business Analysis