India's Suzlon aims to cut debt, but no target-exec
MUMBAI, June 29
MUMBAI, June 29 (Reuters) - India's Suzlon Energy (SUZL.BO) aims to look at selling assets and shares to lower its debt, which quadrupled to $2.45 billion in the fiscal year ended March, a senior company official said on Monday.
The company's debt had ballooned following heavy borrowings to buy Germany-based REpower Systems RPWGn.DE, an acquisition that made Suzlon the world's fifth-largest wind turbine maker.
Chief Operating Officer Sumant Sinha told Reuters the debt reduction plan would depend upon market conditions and there was no target.
"If the markets are very bad, if we are not getting internal cash flow generation and the equity market is also not supportive, then we may look at asset sales," he said.
The company will look at a share sale if the stock market was upbeat, he said.
Suzlon, which has operations in the United States, Europe and China, said on Sunday it expected consolidated net profit in 2009/10 to rise on flat revenues as one-time costs come down. [ID:nBOM457004]
It had raised its holding in Repower to 90.72 percent his month by acquiring a stake in tranches from Portugal's Martifer (MARTI.LS).
Suzlon said on Monday its board had approved raising up to 50 billion rupees ($1 billion) through an issue of equity, debt or other instruments. [ID:nBMB005674] "We don't have any specific fund raising plans," Sinha said, this was an enabling resolution that would give the company flexibility to raise funds when needed.
Shares in Suzlon, which has a market value of $3.8 billion, ended down 5 percent at 117.10 rupees in a flat Mumbai market. The stock has risen 88 percent this year after tumbling 84 percent in 2008. ($1=48.1 rupees) (Editing by Ranjit Gangadharan)