Suzlon Energy Ltd. of India swung to net loss in its fiscal third quarter, hurt by rising costs and a provision to conduct repair work at the wind-turbine maker's overseas plants. Chairman and Managing Director Tulsi Tanti said the global credit crunch is likely to hit sales growth in the wind-energy sector, which had a compounded annual growth rate of more than 34% over the past five years.

MUMBAI -- Suzlon Energy Ltd. of India swung to net loss in its fiscal third quarter, hurt by rising costs and a provision to conduct repair work at the wind-turbine maker's overseas plants.

Chairman and Managing Director Tulsi Tanti said the global credit crunch is likely to hit sales growth in the wind-energy sector, which had a compounded annual growth rate of more than 34% over the past five years.

But Suzlon said it expects the industry's outlook to turn favorable by 2010 as easing credit and lower costs boost demand from the U.S., Europe, China and India.

Suzlon reported a consolidated net loss of 589.7 million rupees ($12.1 million) for the quarter ended Dec. 31, compared with a net profit of 1.52 billion rupees a year earlier. Consolidated total revenue more than doubled to 68.93 billion rupees from 31.7 billion rupees, while consolidated total expenditure surged to 63.19 billion rupees from 28.48 billion rupees.

Chief Operating Officer Sumant Sinha said at a news conference that Suzlon expects to earn a profit for the current quarter ending March 31. The company expects revenue to increase 50%-70% this fiscal year, Mr. Sinha said.

Profit was hurt by a 1.71-billion-rupee provision that Suzlon made during the quarter to replace faulty turbine blades overseas. This is in addition to the 1.22-billion-rupee provision that Suzlon made in the fiscal year ended March 31, 2008.

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