Suzlon Energy’s share price experienced a decline exceeding 4% on Monday following the renewable energy company’s announcement of a Rs 1.01 crore income tax demand from the Ahmedabad Income Tax Department for the fiscal year 2017. This demand stems from a penalty levied for disallowed late payments related to employee contributions to Provident Fund (PF) and Employee State Insurance (ESI) during the 2016-17 financial year. The company intends to contest the penalty and anticipates a favorable resolution. Despite this recent setback, Suzlon Energy stock has demonstrated significant growth, climbing 46% in the past year and an impressive 481% over the last two years.
Suzlon Energy shares reached a 52-week high of Rs 86.04 on September 12, 2024, contrasting with a 52-week low of Rs 35.49 on March 14, 2024. The stock’s beta of 1 indicates average volatility. Currently, Suzlon Energy’s shares are trading below their 5, 10, 20, 30, 50, 100, 150, and 200-day moving averages, suggesting a potential downward trend.
In a positive development last week, the Income Tax Appellate Tribunal (ITAT) overturned an Rs 87.59 crore penalty imposed by the National Faceless Penalty Centre (Income Tax Department) on Suzlon Energy for certain disallowances during the financial year 2015-16. Furthermore, on December 30, 2024, ITAT nullified another tax penalty order amounting to Rs 172.76 crore. These reversals indicate potential positive momentum for the company’s financial outlook.
Adding to the positive news, CRISIL upgraded Suzlon Energy’s credit rating to ‘CRISIL A’ with a Positive Outlook on December 31, 2024, marking the second upgrade within a year. This upgrade acknowledges the company’s strong operational performance, improved profitability, and disciplined financial management. CRISIL’s positive outlook reflects the potential for outperformance in the Wind Turbine Generator (WTG) business due to higher execution volumes, further solidifying Suzlon’s position in the renewable energy sector. This positive rating action contrasts sharply with the day’s negative stock price movement.
Suzlon Energy is a leading provider of renewable energy solutions, specializing in wind turbine manufacturing and offering a comprehensive range of solar energy solutions. Their services encompass solar irradiance assessment, land acquisition, approvals, infrastructure development, power evacuation, supply chain management, installation, commissioning, and lifecycle asset management. The company’s core business remains focused on providing sustainable energy solutions.
