Inox Wind to register profit over next few quarters on favourable market: INOXGFL – Wajobz

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Wind energy solution provider Inox Wind is likely to continue its growth trajectory after its business turned around in the December 2023 quarter, driven by a strong order book and higher revenues, a top official has said.

Its parent INOXGFL Group’s Executive Director Devansh Jain said the group firm is expected to continue to register a consistent rise in its profit after tax (PAT) over the next few quarters, backed by growth in business amid favourable market conditions.

Inox Wind Limited (IWL) is a group company of USD 8 billion INOXGFL Group, engaged in the chemicals and renewables space. On Friday, Inox Wind posted a consolidated net profit of Rs 1.81 crore for the October-December 2023 period after reporting a back-to-back loss for the last five years.

In a telephonic interaction, the executive director attributed “robust order book and revenue growth of over 100 per cent to Rs 506.88 crore, aided by advantageous market conditions” as the key factors leading to the turnaround of the business.

“In the upcoming quarters, we anticipate a consistent rise in PAT, driven by strong business, improved customer experience and favourable market conditions conducive to sustained growth,” Jain said.

As of December 31, 2023, Inox Wind’s order book stands 2.6 GW of projects against 1,178 MW a year ago, he said without sharing any financial details due to regulatory obligations. As per industry estimates, 1 MW of wind project costs around Rs 7 crore.

He said that during the last quarter, IWL secured orders totalling around 1,850 MW and another India’s largest wind project order of 1,500 MW from Calcutta Electric Supply Corporation Limited (CESC).

The company’s 3 MW turbine has been included in the Renewable Energy Market Mechanism (RLMM) of the government. It also entered into an agreement with German firm Wind to Energy (W2E) for the introduction of 4.X MW wind turbines in India. On growth areas, Jain said the government aims to expand wind capacity by approximately 100 GW in the forthcoming decade.

This will lead to demand for wind energy solutions from segments like public sector units (PSUs), independent power producers (IPPs), and commercial and industrial (C&I) customers. Around 18 GW of plain wind tenders and hybrid/RTC/FDRE (round-the-clock/firm and dispatchable energy storage) projects have been floated.

“These are expected to be awarded in the next few months, promising significant business opportunities for Inox Wind in the coming months. “With such positive developments, which include a robust balance sheet, large and continuously increasing order book, along with being technologically ready for the next decade, Inox Wind will continue to perform better in sequential quarters,” Jain said.

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