While responding to a query about dividends, Suzlon’s Chief Financial Officer (CFO) Himanshu Mody mentioned that the company has a business plan set to be achieved in the financial year 2025, making it likely that the discussion will probably happen around May 2025.
The statement from CFO Mody came in a post-earnings interaction.
“I know all shareholders, love dividend. So, I mean, I cannot answer that question right now. I think let us, you’ve seen, we’ve taken certain initiatives of, merging our 100 per cent subsidiary with the parent SGSL (Suzlon Global Services Ltd) with SEL (Suzlon Energy). So, therefore, as we said earlier, there is a business plan that we have set out ourselves to achieve in FY’25. So, I think, this is probably a best discussion held around May of 2025,” the CFO answered.
Suzlon Energy was in focus on Monday after one of its Independent Director quit over the weekend, citing corporate governance issues, while praising the company’s financial performance.
In his resignation, addressed to Suzlon Group Chairman Vinod Tanti, Marc Desaedeleer said that while he is “very pleased” with the operational and financial performance recorded by Suzlon in the last 18 months, there have been several situations where the corporate governance standards did not meet his expectations.
In a response to CNBC-TV18, the company said, “We appreciate Mr. Desaedeleer’s contributions to the company over the past years and are thankful that he had expressed satisfaction with the Company’s operational and financial performance over the past eighteen months.”
“Suzlon emphasizes its commitment to adhering to all regulatory norms and maintaining proactive disclosures and compliance. The Company takes Mr Desaedeleer’s suggestions on procedural enhancements constructively and will continue its journey towards enhanced operational performance,” Suzlon added.
Domestic brokerage house Nuvama Institutional Equities have recently initiated coverage on Suzlon Energy with a ‘Buy’ recommendation and a price target of ₹53 per share.
The brokerage believes that Suzlon’s growth visibility is backed by industry tailwinds, technological edge, high margins in the Operations & Maintenance (O&M) services and balance sheet strength as well. Suzlon now has a net cash balance sheet.
Another brokerage firm JM Financial also continues to maintain their ‘Buy’ rating on the counter with a target price of ₹54 per share.
At 1:35 pm, the scrip was trading 3.61% higher at ₹50. The stock has risen 30% so far this year and is up nearly 230% in the last 12 months.
