Inox Wind shares surge 7% on bagging 200 MW project order

Inox Wind announced on Tuesday to have received an order for a 200 MW wind energy project from a renewable (C&I) commercial and industrial power producer, the company released a statement in BSE filing.

This development pushed the company's share price up by 6.6% to ₹168.85 apiece on the BSE today. The stock opened higher at ₹163.90, compared to the previous closing price of ₹158.30 on the BSE.

The order involves Inox Wind Ltd's (IWL) latest 3 MW Wind Turbine Generators (WTGs), and includes end-to-end turnkey execution. The project will be carried out in Gujarat and Rajasthan, the company says. 

Furthermore, Inox Wind will offer multi-year operations and maintenance (O&M) services after the project is commissioned.

Kailash Tarachandani, CEO of Inox Wind, states, "We are pleased to announce a large turnkey order for 200 MW. Inox Wind continues to be a preferred partner for renewable project developers given our capabilities and credentials to deliver large scale wind projects. I believe this, along with our existing order book and strong order pipeline, reinforces our commitment towards achieving substantial growth in FY25 and beyond."

Recently, IWL announced the infusion of approximately ₹900 crores by its promoter, Inox Wind Energy Limited (IWEL). These funds were raised by IWEL on May 28, 2024, through the sale of IWL equity shares via block deals on stock exchanges, attracting numerous prominent investors.

Tarachandani said, "This fund infusion will help us become a net debt free company, strengthening our balance sheet and help accelerate our growth. We expect substantial savings in interest expenses going ahead, aiding our profitability further. With all the building blocks in place, be it our execution capabilities, state-of-the-art technological offerings, financial strength, robust order book and a large order pipeline, we are geared up to embark on a substantial growth journey ahead."

Inox Wind Ltd reported a consolidated profit of ₹36.72 crore for the March 2024 quarter, attributed primarily to increased income. In the same period last year, the company recorded a net loss of ₹119.04 crore, as stated in an exchange filing.

During the fourth quarter of FY24, the company's total income rose to ₹563.07 crore, up from ₹193.83 crore the previous year. Expenses stood at ₹512.50 crore, compared to ₹312.43 crore in the year-ago quarter.

Tarachandani said, "Q4 has been a milestone quarter for the company as we successfully transitioned to 3 MW WTG (wind turbine generators) supplies from 2 MW WTGs. Our debt levels have also come down drastically and we expect to be net debt free within H1 FY25."

During the quarter, the company secured its largest wind project order to date, a 1,500 MW project from a major power utility. This achievement has resulted in a robust order book of 2.7 GW (excluding letters of intent), with a revenue potential of ₹18,000 crore.