In Short:
Inox Wind reported a net profit of ₹38 crore in Q4 FY24, a significant improvement from a loss of ₹115 crore in the previous year. The company transitioned to supplying 3 MW WTGs, leading to strong financial performance and reduction in debt levels. With a large order book of 2.7 GW and favorable macro outlook, the company expects robust growth and profitability from FY25 onward.
Inox Wind Turns Profitable in Q4 FY24
Inox Wind (IWL) has reported a consolidated net profit of ₹38 crore in Q4 FY24, a significant turnaround from the net loss of ₹115 crore in the same period a year ago. This positive result can be attributed to higher project execution and a substantial order book.
Success Streak Continues
For IWL, a company offering end-to-end wind power solutions, this marks the second consecutive quarter of reporting a net profit. The consolidated revenue also saw a substantial increase, reaching ₹563 crore during the January-March quarter in FY24.
IWL CEO Kailash Tarachandani shared, “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 puts us in a strong position for FY25. Our debt levels have also reduced significantly, and we anticipate being net debt-free within H1 FY25.”
Strong Growth Outlook
The positive macroeconomic conditions are evident in the company’s robust order book, currently standing at around 2.7 gigawatts (GW). With initiatives aimed at expanding operations and strengthening the balance sheet, coupled with the large order book, IWL expects a surge in order execution from FY25 onwards, leading to substantial growth in profitability.
In Q4 FY24, the company executed 129 megawatts (MW) of project capacity, a significant increase from the 52 MW in Q3 FY23. The company stated, “Large macro tailwinds resulting in a healthy order book of around 2.7 GW (excluding LoIs), an addition of about 2.2 GW during the year, having a revenue potential more than ₹18,000 crore.”
Optimistic Future for Renewable Energy
The macro outlook remains highly favorable, with strong growth expected in power demand in the upcoming years, necessitating rapid capacity addition, especially in renewables. India plans to add approximately 100 GW of wind power capacity over the next 8-10 years, on the current base of around 46GW. In FY24, more than 50GW of renewables capacity was awarded through auctions, including over 15 GW of hybrid / RTC / FDRE projects and 2.3GW of plain vanilla wind projects.
