Thursday, June 3, 2010

>SUZLON (IIFL)

■ WTG sales pick up, but continue to remain muted, 38% lower over the previous year as customers defer deliveries

■ Gross profit/MW improves to Rs24.6mn/MW during Q4 FY10 from Rs20.3mn/MW in Q3 FY10, expected to stabilize here

■ High depreciation and tax outgo coupled with lower other income translate into adjusted loss of Rs2bn

■ Order book and order inflow remain weak during the quarter, concerns on weak order book position continue

■ Reduce earnings to reflect weaker than expected FY11; but steep correction leaves room for upside despite cut in target price to Rs73/share, re-iterate BUY

To read the full report: SUZLON

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