India’s solar manufacturing sector is poised for significant growth, with projections indicating module production capacity will exceed 150 GW and cell capacity will reach 75 GW by 2026. In 2023, India added 20.8 GW of solar modules and 3.2 GW of solar cells, reflecting a robust expansion driven by domestic demand and export opportunities. India aims to improve its self-reliance in solar production while reducing dependency on imports from China. However, challenges remain, including competition from cheaper imports and the need for substantial investments in technology and infrastructure to support this ambitious growth trajectory.
Price Movement
Inox Wind’s stock in Friday’s session closed at Rs. 196.80 per share down by 2.65 percent from the previous closing price of Rs. 202.15. The stock has delivered a return of around 95 percent in the past year and has outperformed the Nifty Index in the same period.
Business Segments
As per the recent September 2024 results, the company recognizes its revenue from operations from the Development of projects for wind farms. The business activities involve the Manufacturing of Wind Generators, Erection, procurement and commissioning services, Operations, and Maintenance services, and Common infrastructure facility services for WTGs.
Future Outlook
As per the ICICI Securities report, Inox GFL the group company is looking to transform its renewable energy approach by strategically expanding across multiple segments. They will establish IGREL Renewables, a dedicated C&I renewable power generation company, targeting a 3GW hybrid portfolio within the next 2-3 years. Currently, IGREL operates 157MW of wind capacity with an additional 36MW near commissioning and has already placed orders for 750MW of wind and 250MW of solar projects.
Simultaneously, the group will launch Inox Solar, a vertically integrated solar manufacturing and services venture. By FY27, Inox Solar aims to achieve 4.8GW module production capacity and 2.4GW TOPCon cell manufacturing capabilities. This expansion will strategically position the company across the renewable energy value chain, leveraging benefits between Inox Wind, Inox Resco, Inox Green, and GFL.
The company’s growth trajectory is robust, with clear execution targets. In FY25, Inox Group plans to double its previous year’s execution to 800MW. The group projects further scaling up to 1.2GW in FY25 and 2GW in FY26.
Financial Performance
Their Q2FY25 results show revenue from operations of Rs. 741.74 crore which increased by 93 percent year on year, from Rs. 384.40 crore in Q2FY24 and a 14 percent increase from Rs. 650.52 crore in Q1FY25. Their net profit improved year on year, from a loss of Rs. 24.12 crores in Q2FY24 to a profit of Rs. 92.89 crores in Q2FY25. Quarterly, the profits were up by 79 percent from Rs. 51.82 crore.
The debt-to-equity ratio was 1.66 times increased from 1.16 times in FY23. The RoE stood at -1.81 and the RoCE stood at 4.26 percent.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a share of 48.27 percent stake in Inox Wind, Foreign Institutional Investors (FII) holding around 15.82 percent, Domestic Institutional investors (DII) standing at 9.25 percent, and public holdings standing at 26.66 percent.
About the company
Inox Wind is a leading Indian wind energy solutions provider that is primarily engaged in the manufacturing of wind turbine generators (WTGs). Their business model focuses on the entire value chain of wind energy which includes manufacturing, project development, and operation and maintenance services. Inox Wind aims to capitalize on India’s growing renewable energy sector by offering cost-effective and efficient wind power solutions.
The company also focuses on strategic partnerships and collaborations to improve its technological capabilities and expand its market presence, positioning itself as a key player in the transition towards sustainable energy sources. The company has an order book of 3,328MW which includes 1,142MW of Equipment supply and 2,186MW of End-to-end turnkey.
Written by Santhosh S
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