Inox Wind Reports Multifold Jump in Profits, Sets Stage for Massive Growth Ahead

Inox Wind Limited (IWL) has announced its financial results for the quarter and year ended March 31, 2024, marking a notable turnaround and paving the way for significant growth in the future.

The company showcased strong performance across various parameters, delivering strong margins and signaling a promising roadmap for future profitability. In a significant surge, revenue soared over 190 percent year-on-year to INR 563 crores in Q4 FY24. 

This impressive growth was accompanied by a substantial increase in EBITDA, which stood at INR 140 crores, marking a massive jump from an EBITDA loss of INR 25 crores in Q4 FY23. Moreover, the Profit After Tax (PAT) witnessed a quantum leap, reaching INR 38 crores, both sequentially and on a year-on-year basis.

One of the key factors driving this stellar performance is the company’s robust order book, which currently stands at approximately 2.7 GW, offering substantial revenue growth visibility in the future. Inox Wind’s order book comprises a healthy mix of Public Sector Undertakings (PSUs), Independent Power Producers (IPPs), Commercial & Industrial (C&I) clients, and retail customers. 

Notably, the company recently secured a 210 MW order from Hero Future Energies, highlighting its ability to attract repeat orders from esteemed clients.

FY24 marked a milestone year for Inox Wind, characterized by a remarkable financial turnaround and several key achievements. These include securing the single largest wind project order of 1,500 MW from a leading power utility, transitioning to 3 MW Wind Turbine Generator (WTG) supplies, and signing a landmark agreement for the launch of 4.X MW wind turbines in India, ensuring technological advancement for the next decade.

In addition to operational achievements, Inox Wind also strengthened its financial position by raising approximately INR 1,300 crores from global institutional investors, which was utilized to reduce borrowings and fortify the balance sheet.

The macro-outlook remains highly favorable for Inox Wind, with strong demand growth expected in the renewable energy sector, particularly in wind power. India plans to add around 100 GW of wind power capacity over the next 8-10 years, providing a substantial opportunity for companies like Inox Wind to capitalize on.

Commenting on the results, Kailash Tarachandani, CEO of Inox Wind, expressed optimism about the company's performance, stating, “Q4 has been a milestone quarter for the company as we successfully transitioned to 3 MW WTG supplies from 2 MW WTGs. Our EBITDA run rate in Q4 places us on a strong footing for FY25. Our debt levels have also come down drastically and we expect to be net debt-free within H1 FY25."

"The macro tailwinds are reflected in the strong order book which stands at ~ 2.7 GW today. Our other initiatives including ramping up operations, and strengthening our balance sheet, coupled with our large order book, will translate into higher order execution from FY25 onwards, resulting in strong growth in profitability,” added Tarachandani.