Inox Wind Q2 Earnings Call: Five Takeaways

Inox Wind Q2 Earnings Call: Five Main Takeaways

Wind turbine manufacturing company Inox Wind after delivering optimistic Q2 results discussed several issues related to its earnings and futuristic plans besides the challenges in the sector.

Following are some of the key takeaways from the discussions with the management of the firm in the latest Q2 earnings call with the investors.

1. Buoyed by net-cash status

The company is now bolstered with the net-cash-positive status. The top management of the firm said that Inox Wind turned net cash positive as of 30th September, 2024. It also said that in H1FY25, the company delivered a positive operational cash flow, indicating the improved financial strength of the firm.

“Our profits have zoomed to Rs. 90 crores for the quarter. I am especially pleased that on the back of the tremendous effort put by our team, over the past 2 years, our balance sheet has now become net cash and we have delivered positive operational cash flow in H1 FY25, which is bound to significantly increase going ahead,” Kailash Tarachandani, Group CEO of Inox Wind said in the investors call.

2. Execution maintenance despite monsoon hurdles

Inox Wind also said that notwithstanding the hurdles emanating out from monsoons, the company was able to deliver 140 MW orders in Q2. The company which has its highest-ever order book backlog of 3.3 GW claimed that it has already achieved 1.2 GW of deliveries in the current financial year.

“We have been able to maintain our execution at 140 megawatts during this period despite the typical seasonal monsoon challenges faced during the quarter. On the back of our strong performance in the first half of FY25, I believe we are on course to achieve our targets for the full financial year. We are rapidly scaling up our execution backed by our largest ever order book of 3.3 gigawatts having added around 1.2 gigawatt of orders till date in the current financial year.”Tarachandani added.

3. Inox Wind To Roll Out 4 MW+ turbine By FY25-26

After getting the benefits and large orders for its 3 MW large wind turbine series, the firm has planned to bring in more large wind turbines in the 4 MW series to serve emerging market needs. Currently, the largest onshore wind turbine turbine installed in India has been by Adani , for 5.2 MW in Khavda, Gujarat.

“We are working on that 4x turbine, which we talked about. The engineering part is done. We have actually ordered some components of the prototype also. So, we will be going ahead with all the certification, etc. early next year and possibly starting the commercial production in the latter half of FY25-26, or the beginning of Calendar ‘26,” Devansh Jain, Executive Director of the firm said.

4. Wind market seems favourable for H2

The company is now also optimistic with the existing Indian wind market with the rise in tenders and award of wind power projects. It also found the tariffs competitive, which has given a fillip to the sector in H2.

“A brief overview on the macro-outlook which continues to be highly favorable. In the current financial year, around 12 gigawatts of new wind hybrid FDRE tenders have been awarded. Tariff continues to be very competitive ranging at around Rs. 3.3 per unit for wind solar hybrid, Rs. 3.6 to 3.68 per unit for plain vanilla wind and Rs. 4.37 per unit for FDRE projects in the recent option. Demand from the C&I segment, which is over and above these figures, has continued to gain pace,” Tarachandani said.

5. Diversified orders

The company also said that it has received orders from multiple segments including PSUs and Commercial and Industrial (C&I) units, making the whole orders more diversified in nature.

“Last year, the questions we were facing were we have only PSUs. We went out and diversified across C&I. …there are so many PSU vendors out there in which we are participating, will be participating. There are lots of C&I deals and larger IPP deals going on. Frankly speaking, we are now no longer fixated to any one category of customers. And I think there are at least 10 or 12 very large discussions going on. So, I think as we keep moving forward, we will keep announcing deals across the spectrum,” Jain added.