Suzlon drops as loss widens on taxes, interest

Suzlon Energy, India’s biggest maker of wind energy turbines, fell seven per cent after reporting a wider-than-estimated loss as interest costs and provision for deferred taxes increased. Suzlon shares closed 7.3 per cent down to Rs 28.5 on the Bombay Stock Exchange.

The loss widened to Rs 286 crore in the third quarter from Rs 254 crore a year earlier. The company’s auditors in the statement drew attention to the uncertainty about how Suzlon would raise funds to redeem foreign currency convertible bonds (FCCB) due in June.

Suzlon has FCCB’s with a total redemption value of about $569 million due in June and October, compared with the face value of $389 million. The yield on the zero coupon bonds due in June surged to a record 66.84 per cent on February 3, according to data compiled by Bloomberg.

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