Suzlon's CFO Sumant Sinha quits to start his own advisory firm: ET reports

As I had reported in my previous post about Suzlon's CFO quiting and reasons not known, (ET confirms the news) but now he gives reason...

Sumant Sinha, has decided to step down from the position witheffect from 1st June 2010, he will pursue his own entrepreneurial interest and sets up his own financial advisory consultancy.

His first Signed - up client is SUZLON ENERGY LTD, to provide high level strategic advice and counsel to the board and managment team.

"I want to persue my own enterpreneurial path for sometime now and financial advisory firm allows me to launch off on my own and deeper dive in many interesting areas", Sinha said.

"I look forward to my continued association with Suzlon and I am delighted that it will be my first client," he added.

Suzlon's chairman, Tulsi Tanti, said that "Sinha's contribution in buliding relationships with important stake holders has been very valueable in getting Suzlon back on track where it is now well-positioned to ride through the current turbulance in the global environment and to rediscover success once again"

Mean while Suzlon's results was out as expected not good, giving Sales down by 28% at Rs.6160 cr, and Net Loss of Rs.188 cr vs Net Profit of Rs.315 cr. Group Revenue at Rs.20620 cr ($4.3 bn) for year FY09-10.

NET DEBTS as on 31st March 2010 down to Rs.10153 crs v/s Rs.12189 cr. Consolidated Net Debt Rs.9764 crs.

Company approves Rights issue of face value Rs.2 to its existing equity shareholders.

RE Power FY10 net income up at Euro 57.9 mn (Rs.333.504 cr), But SUZLON's CFO QUITS

RE Power, a subsidiary of Suzlon Energy, has announced its financial year 2009-10 results.

It has reported net income of Euro 57.9 million (Rs.333.504 cr) as against Euro 51.9 million (Rs.298.944 cr) (YoY).

Sales rose 8.5% to Euro 1.3 billion (Rs.7488 cr) versus Euro 1.2 billion (Rs.6912 cr) (YoY).

Earning before interest and tax (EBIT) margin improved at 7.4% versus 6.3%. Order backlog rose 40% to Euro 2.1 billion (Rs.12096 cr) .

REPower Guidance -

-Management expects a 10-20% increase in the overall performance

-Sales guidance of approximately. Euro 1.5 to 1.6 billion (Rs.8640 - Rs.9216 cr)

-EBIT margins seen increasing to 7.5-8.5% .

BUT, Suzlon Energy Ltd's Chief Operating Officer Sumant Sinha has quited today.

Sinha was considered to have been responsible for the company’s recent refinancing of its overseas bonds. An official announcement may be made today, Sinha was previously with Aditya Birla Retail and the Son of fromer finance minister Mr. Yaswant Sinha.....With Sumant quiting future of Suzlon's debt restructuring seems to be in dark........Meanwhile waiting for the official declaration of Suzlons results......

Suzlon Energy's result on 29th May 2010. at 4.30pm Pune, (please notice the timing of post...reported much earlier than all...)

UPDATE : GRASIM IND SAMRUDDHI DEMERGER

Details as on 21-May-2010

Share price- Rs.2,452.95;

Market Cap- Rs.22,370.79 cr;

52 Week- H- Rs.2,988.00; L- Rs.2,005.55;

P/E- 10.24; EPS- Rs.238.26;

Book value – Rs.1,033.36; Industry P/E - 19.26

Dividend – Rs.30; Fv- Rs.10;

Total Share Issued- 9,16,83,571 shares;

Promoter’s holding- 2,33,81,176 shares; Promoter’s holding in %- 25.50%;

As known to everyone earlier in my previous post Grasim has 65% stake while Grasim's shareholders will have 35% direct stake in Samruddhi Cement. So Grasims share price should adjust for 35% of Samruddhi's business.

On MAY 26 2010 (ex- date) by Ultra Tech Cement closing price (May 25,2010) the merger ratio of 4:7 ie 4 Ultra Tech Cement for 7 Samruddhi Cements. based on 26th May 2010 wednesday's closing price Grasim's share price should adjust by Rs.543 (Ultra Tech share price Rs 950x 4/7).

Samruddhi is expected to be listed by June,2010 & be finally merged with Ultra Tech by July,2010 (merger effective July 01,2010). Samruddhi Cements has 26 crore shares with a Face value of Rs.5.00 , Book value of Rs. 250 , Grasim will transfer Rs.2100 crore debts to Samruddhi Cements

My previous post on this topic on GRASIM SAMRUDDHI DEMERGER MARCH 14,2010