Inox Wind, Inox Wind Energy zoom up to 36% in 2 days on strong earnings

Shares of INOXGFL Group companies Inox Wind Energy (IWEL) and Inox Wind were on a roll and rallied up to 36% in past two days after the companies reported strong earnings and healthy outlook.

Shares of Inox Wind hit a new high at Rs 237, as they rallied 14 per cent on the BSE in Tuesday’s intra-day trade amid heavy volumes after the company bagged an order for 51 MW from Everrenew Energy Private Ltd, a leading commercial and industrial (C&I) player.

In the past two days, the stock of the wind energy solutions provider has zoomed 36 per cent after reporting a healthy operational performance in June 2024 quarter (Q1FY25).

IWL said the order from Everrenew is an equipment supply order for the company's latest 3 MW Wind Turbine Generators (WTGs). Additionally, IWL will provide post commissioning multi-year operations & maintenance (O&M) services. The project will be executed in the state of Tamil Nadu.

 

IWL is India's leading wind energy solutions provider servicing IPPs, Utilities, PSUs & Corporate investors. IWL is a part of the ~$ 8 billion INOXGFL Group which has a legacy of over nine decades and is primarily focused on two business verticals - chemicals and renewable energy. IWL's subsidiary, Inox Green Energy Services, is the only listed wind O&M services company in India, having a strong portfolio of >3.2GW and a multifold growth path ahead.

In Q1FY25, IWL reported a consolidated profit after tax of Rs 92 crore, as against a loss of Rs 36 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) also saw a significant increase, reaching Rs 157 crore in Q1FY25, up from Rs 35 crore in the same quarter last year. Revenue rose 85 per cent year-on-year to Rs 651 crore from Rs 352 crore in Q1FY24.

IWL's robust growth outlook is reflected in the company’s large order book which stands at > 2.9 GW with a healthy mix of PSUs, IPPs, C&I and retail customers. In the first few months of FY25, IWL has secured orders totalling 611 MW across customers. Large order book position provides huge revenue growth visibility.

At 10:19 am; IWL was trading 9 per cent higher at Rs 226.90 on the back of a two-fold jump in average trading volumes. A combined nearly 42 million shares changed hands on the NSE and BSE. In comparison, the BSE Sensex was down 0.08 per cent at 79,582.

Meanwhile, shares of IWEL, the promoter of IWL, were locked in upper circuit for the second straight day, up 10 per cent at Rs 9,925, also its new high on the BSE. In the past two trading days, the stock surged 21 per cent. IWEL has reported a consolidated profit after tax of Rs 38.37 crore in Q1FY25, as against loss of Rs 65.77 crore in Q1FY24. The company had posted a profit of Rs 38.88 crore in the March 2024 quarter (Q4FY24).

The Government of India has notified a bidding trajectory for 250 GW of renewable energy capacity, which is 50 GW annually for the next five consecutive years, spanning from FY2023-24 to FY2027-28. These yearly tenders for Inter-State Transmission (ISTS) linked renewable energy capacity will encompass the establishment of a minimum of 10 GW of wind power capacity each year.

The C&I sector encompasses approximately 40-45 per cent of the total energy requirement within India. Even under the assumption that 20 per cent of the energy requirements of the C&I segment are met through renewable sources, the requisition for Renewable Energy (RE) capacity is anticipated to remain significant, approaching nearly 80 GW.