Looking at Suzlon Order Book Q4 FY 2023-24
How is the Suzlon Order book influenced by the orders the company received in Q4 2023-24? What order did the company receive and what what is the likely impact on the company's results?
With the closure of the FY 2023-24, the market is now awaiting results of companies across the board. Speculations will mount with passing days as the market prepares to respond to these results.
In this post, we shall look at the orders the Suzlon received during the last quarter, Q4 of 2023-24.
Suzlon secures a new 225 MW order for their 3 MW series from Everrenew Energy Private Limited
January 5, 2024
Suzlon announced the receipt of a 225 MW order for their Series 3MW from Everrenew Energy Pvt Ltd. So, Suzlon will supply 75 wind turbines of 3 MW capacity each. The Project is located at the client's sites at Vengaimandalam, Trichy district and Ottapidaram, Tuticorin district, Tamil Nadu. A project of this size can provide electricity to ~1.85 lakh households and curb ~7.31 lakh tonnes of CO2 emissions per year
Deal size: There is no publicly available information on the size of the deal.
READ More about the deal here.
Suzlon secures a new order of 642 MW from Evren
January 30, 2024
Suzlon announced it received an order of 642 MW from Evren. This order is for the company's larger rated 3 MW, S144-140m turbines from the 3 MW product series. As part of the agreement, Suzlon will supply 214 wind turbines (equipment supply) and undertake installation and commissioning for the project. Suzlon will also undertake comprehensive operations and maintenance services post-commissioning.
Deal size: There is no publicly available information on the size of the deal.
READ More about the story here
Suzlon secures a 30 MW order for the 3 MW series from EDF Renewables
February 29, 2024
Suzlon Group announced a new order win for the development of a 30 MW wind power project for EDF Renewables. Suzlon will install 10 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3 MW each. The project is located in Gujarat.
This is a repeat order for the company's largest turbine series, S144-140m with a rating of 3 MW.
Deal size: There is no publicly available information on the size of the deal.
READ More about the story here.
Suzlon secures a new 72.45 MW order for the 3 MW series from Juniper Green Energy Private Limited
March 7, 2024
Suzlon announced a new order win for the development of a 72.45 MW wind power project for Juniper Green Energy Private Limited.
The company will install 23 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 3.15 MW each at the client's site at the Dwarka district in Gujarat.
Deal size: There is no publicly available information on the size of the deal.
READ More about the story here.
Q3 2023-2024 Order Book Status
As per the Q3 quarterly results, the Wind Energy order book was published by Suzlon as below.
The Everrenew and Evren orders (total amounting to 867 MW) were already announced in the Q3 results as you can see above. So, Suzlon received an addition 102.45 MW capacity orders from EDF Renewables and Juniper Green Energy.
Estimating a Wind Turbine deal size
This is very difficult for us to estimate. But we attempted to make a ball park estimate. Our estimate was based on Google Gemini's help on an average cost per MW of an standard Wind Turbine.
It seems the per MW capacity costs anywhere from ₹5 crore (US$617,000) to ₹8 crore (US$987,000) per MW for onshore wind projects. Based on this, assuming a mid figure of ₹6.5 crore our estimated deal sizes should be as below:
- Everrenew Energy: Capacity is 225 MW. Deal size = 225x6.5 = ₹1462.5 crores
- Evren: Capacity = 642 MW. Deal size = 642 x 6.5 = ₹4173 crores
- EDF: Capacity = 30 MW. Deal size = 30 x 6.5 = ₹195 crores
- Juniper Energy: Capacity = 72.45 MW. Deal size = 72.45 x 6.5 = ₹471 crores
So, this quarter should have augmented the Suzlon order book ₹ 6300 crores.
Of course, additionally there are operational and maintenance costs that may be a part of such contracts and deals.
What is the utility of knowing the order book?
The order book is a way for an investor to know if the upcoming revenue streams and future prospects of a company. When such orders are announced, such orders generally create a sense of positivity around the company.
Note that despite the order being received, it does not follow that the cash actually flows into the company's accounts. These revenues are booked only later in conjunction with order fulfillment, depending on the nature of the contract.
Summary
This is the start of our order book series. The intention of these articles is to accumulate and educate investors on orders received by specific companies that we are following.
Remember that this information is only a part of many other things that you should consider as an investor before you make investment decisions!
Keep following us and Happy Investing!
