Inox Wind Soars After Return To Profit In June Quarter

Inox Wind has recently experienced a significant turnaround, reporting a net profit of ₹50 crore for the June quarter of FY25. This marks a notable recovery from a loss of ₹65 crore during the same period last year.

The company’s total revenue surged by 85% year-on-year to reach ₹651 crore, reflecting robust operational performance and effective management strategies.

Strong Financial Performance

The June quarter results have prompted a surge in Inox Wind’s share price, which increased by over 16% following the announcement. This growth is attributed to the company’s optimistic execution guidance and strong financial metrics.

The management has indicated a confident outlook for the upcoming quarters, anticipating a substantial increase in order execution as the monsoon season concludes, traditionally a weaker period for wind energy projects.

Order Book and Future Prospects

Inox Wind’s current order book stands at an impressive 2,917 megawatts, which positions the company well for revenue generation over the next two years.

The management has set ambitious targets, aiming to execute 800 megawatts in FY25 and 1,200 megawatts in FY26.

This translates to a potential revenue of approximately ₹17,502 crore, given the company’s current earning rate of ₹6 crore per megawatt.

Market Position and Growth Strategy

Currently holding a 16% market share in the domestic wind turbine generator sector, Inox Wind aims to increase this to 20-25% in the next two years.

The Indian wind energy market is projected to grow significantly, with estimates of 5 gigawatts and 6 gigawatts in FY25 and FY26, respectively.

As the country’s total wind energy capacity is expected to rise from 46 gigawatts to 80 gigawatts in the next eight years, Inox Wind is well-positioned to capitalize on this growth opportunity.

Management Insights

Devansh Jain, Executive Director of Inox Group, expressed confidence in the company’s ability to meet and exceed its execution guidance.

He noted that the first half of the fiscal year typically sees lower execution rates due to monsoon impacts, but he expects a strong rebound in the second half.

The management has also indicated a potential for margin growth of 15-16% for FY25, further enhancing the company’s financial outlook.

Conclusion

Inox Wind’s return to profitability in the June quarter, coupled with a robust order book and strategic growth plans, positions the company for continued success in the renewable energy sector.

As the demand for wind energy increases, Inox Wind is poised to leverage its market presence and operational capabilities to achieve significant revenue growth in the coming years.