The shares of Inox India, specialzing in supplying cryogenic equipment, particularly tanks jumped upto 15 percent upon becoming India’s first cryogenic equipment manufacturer to receive the IATF 16949 certification.
Price action
With a market capitalization of Rs. 9,006.46 crores on Thursday, the shares of INOX India Limited jumped upto 15.4 percent making a high of Rs. 1044.70 per share compared to its previous closing price of Rs. 905.20 per share. It is currenlty trading at a 33 percent discount from its 52-week high of Rs. 1,507.20.
What Happened
INOX India Limited has surged in the intraday trade upon becoming India’s first cryogenic equipment manufacturer to receive the IATF 16949 certification after a rigorous audit of its Kalol facility in Gujarat.
The Bureau Veritas Certification was issued to the company on February 24 for the design and manufacturing of insulated cryogenic fuel tanks, which is a mandatory requirement for automotive OEM suppliers. This certification confirms the company’s adherence to quality management standards.
The management is optimistic about the future of the company followed by significant projects and began expanding its capacity, which temporarily impacted revenue. However, the management remains optimistic about a stronger performance in Q4FY25 and FY26, and they expect revenue growth of 18-20 percent year-on-year in the fourth quarter, likely surpassing Rs 400 crore.
This certification positions INOX India as a pioneer in bridging the gap between cryogenic technology and automotive applications, particularly in the growing LNG fuel tank sector in India, as well as opening the door for entering the global market of heavy-duty vehicle fuel tanks.
As of December 31, 2024, the order backlog stood at Rs 1,341 crore, with a Q3FY25 order inflow of Rs 493 crore. With a strong global presence, INOX India derives approximately 55 percent of its total revenue from exports and operates in over 100 countries.
Financials
As per the company’s Q3FY25 results, revenue grew by 14.8 percent year-on-year (YoY) to Rs 334 crore. EBITDA increased by 3 percent YoY to Rs 69 crore, while the EBITDA margin declined by 220 basis points to 20.7 percent and Net profit surged 20 percent YoY to Rs 58 crore.
About the company
INOX India Limited is a leading manufacturer and supplier of cryogenic storage tanks and equipment, specializing in insulated cryogenic fuel tanks. The company operates across various sectors, including automotive, energy, and industrial gases. With a strong global presence, INOX India exports approximately 55 percent of its revenue to over 100 countries.
Written by Sridhar J
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