Wind Major Players Big News from the Big Three - Raghav Raghunathan
Wind major players <ul><li>The top five wind players are Vestas, GE Wind, Gamesa, Enercon & Suzlon. </li></ul><ul><li>The ...
Big Three – Income overview
Gamesa – Revenue & Critical Cost drivers Analysis <ul><li>Year on year revenue growth coupled with strong industry wide gr...
Suzlon – Revenue & Critical Cost drivers Analysis <ul><li>Year on year revenue growth coupled with strong industry wide gr...
Vestas – Revenue & Critical Cost drivers Analysis <ul><li>Year on year revenue growth coupled with strong industry wide gr...
What is the news? <ul><li>Suzlon </li></ul><ul><li>Suzlon increases holdings in REpower to 90.72% by buying Portugal based...
Comments <ul><li>The above plots and graphs present a very limited view based on only the information available on the inc...
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Wind major players

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Wind major players

  1. 1. Wind Major Players Big News from the Big Three - Raghav Raghunathan
  2. 2. Wind major players <ul><li>The top five wind players are Vestas, GE Wind, Gamesa, Enercon & Suzlon. </li></ul><ul><li>The following report is a brief overview of revenue growth and cost structure at Vestas, Gamesa & Suzlon. </li></ul><ul><li>The information used for this report is available in the public domain. </li></ul>
  3. 3. Big Three – Income overview
  4. 4. Gamesa – Revenue & Critical Cost drivers Analysis <ul><li>Year on year revenue growth coupled with strong industry wide growth. </li></ul><ul><li>211% sales growth in 4 years </li></ul><ul><li>Major cost drivers are COGS, SG&A and DA. </li></ul><ul><li>Overall cost structure is stable over the last four years as revenues have continuously increased. </li></ul><ul><li>Net profit margin has increased from 7.6% in 2005 to 8.8% in 2008 with a slight drop in 2007 </li></ul>
  5. 5. Suzlon – Revenue & Critical Cost drivers Analysis <ul><li>Year on year revenue growth coupled with strong industry wide growth. </li></ul><ul><li>700% sales growth in 4 years </li></ul><ul><li>Major cost drivers are COGS, SG&A and Interest expense . </li></ul><ul><li>Overall cost structure is increasing over the last four years as revenues have increase at a breakneck speed. </li></ul><ul><li>Net profit margin has dropped from 18% in 2005 to 7.5% in 2008. </li></ul>
  6. 6. Vestas – Revenue & Critical Cost drivers Analysis <ul><li>Year on year revenue growth coupled with strong industry wide growth. </li></ul><ul><li>168% sales growth in 4 years </li></ul><ul><li>Major cost drivers are COGS, SG&A, R&D Expense. </li></ul><ul><li>Overall cost structure is decreasing consistently year-on-year. COGS dropped from 94% in 2005 to 80% in 2008. </li></ul><ul><li>Net profit margin has increased from -5% in 2005 to 8.5% in 2008 with a consistent year-on-year increase. </li></ul>
  7. 7. What is the news? <ul><li>Suzlon </li></ul><ul><li>Suzlon increases holdings in REpower to 90.72% by buying Portugal based Martifer group’s 14.4% share. </li></ul><ul><li>Suzlon blades cuts Pipestone workforce by half. </li></ul><ul><li>Suzlon Energy's wind park project coming up at Dhule in Maharashtra has hit a roadblock as a group of locals in the region </li></ul><ul><li>Gamesa </li></ul><ul><li>Iberdrola sells 10% stake in Gamesa for € 391.7 Million. </li></ul><ul><li>Gamesa post 22% rise in cores earnings in Q1 2009 underpinned by improved margins and cost cutting. The net profit, however, fell by 11% due to accounting changes. </li></ul><ul><li>Vestas </li></ul><ul><li>Martha Wyrsch named Vestas Americas President. </li></ul><ul><li>Vestas Blades America is getting ready for third phase expansion to increase manufacturing capacity and add waste disposal systems. </li></ul><ul><li>Vestas delivers first shipment for Huge wind farm in northwest Indiana. </li></ul>
  8. 8. Comments <ul><li>The above plots and graphs present a very limited view based on only the information available on the income statement of these publicly traded companies. </li></ul><ul><li>This is not meant to be a financially rigorous analysis. </li></ul><ul><li>Wind is currently an industry that is going through tremendous changes hence a careful analysis of the financial information along with the industry trend is necessary to understand performance. </li></ul>
  9. 9. Thank you for your attention

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