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INOX Wind raises margin outlook to 17%, citing upside opportunities ahead

Umito October 28, 2024

INOX Wind Ltd (IWL) has announced an upward revision to its margin guidance from 15% to 17%, driven by strong performance in the first half of the financial year.

Devansh Jain, Executive Director, InoxGFL Group, said, “We have upgraded our guidance as the first and second quarters were quite strong for us. The third and fourth quarters will somewhat normalize this, but we have raised our forecast from 15% to 17%, knowing that there could be further increases due to several factors.

Several strategic initiatives have contributed to this optimistic outlook. Jain highlighted that royalty payments will start declining from FY26, which is expected to have a positive impact on margins. The company has also made significant progress in backward integration, including developing its own cranes and strategically sourcing transformers.

Additionally, IWL plans to launch a new 4x turbine and larger blades in the next fiscal year, positioning the company for future growth.

On October 25, INOX Vent reported a net profit of ₹90.20 crore for the quarter ending September 30, a substantial turnaround from a loss of ₹26.84 crore in the same period last year.

The wind energy solutions provider generated revenue of ₹732 crore, with an impressive earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 23.6%.

The balance sheet also showed a positive development, with INOX Wind becoming net cash positive, reporting cash reserves of ₹278 crore.

During the quarter, Inox Wind signed a consortium agreement with banks for ₹2,200 crore, largely non-fund based facilities, sanctioned by the financial strength of IWL’s balance sheet.

Its subsidiary Resco Global has raised ₹350 crore in equity capital from marquee investors.

The company’s listed subsidiary, Inox Green Energy Services Ltd, reported a profit of ₹6.06 crore compared to ₹5.76 crore in the same quarter of 2023-24. It had an income of ₹64.41 crore as against ₹58.21 crore earlier.