India is currently adopting sustainable development, recognizing the urgent need for eco-friendly energy solutions. Wind energy will become one of the key components of the country’s effort to lower its carbon footprint. Wind energy is capturing a large market share in one of the fastest-growing sectors in India.
Among the leading players in this field is Inox Wind, a company that consistently contributes to India’s green energy goals. In this article, we will explore Inox Wind Limited’s order book, financial health, and future plans, highlighting its key role in sustainable energy development.
Industry Overview
India stands at 4th rank globally in renewable energy, with an installed capacity of 197.20 GW, which includes wind energy of 47.07 GW as of July 2024. India ranked fourth in both wind and solar power capacity. Wind energy is one of the cheapest sources of power in renewable energy. The Indian wind sector is expected to reach almost 80 GW of capacity in the next 8 years.
Wind Energy has an offshore target of 30 GW by the financial year 2030 with three potential sites identified in Gujarat and Tamil Nadu. By 2030, the Indian government hopes to generate 500 GW of renewable energy, of which 140 GW will come primarily from wind energy. CAPEX required an additional 89 GW of wind capacity at a cost of Rs 6 trillion during 2022-32.
The following chart shows the future outlook of the global wind energy sectors for the financial years 2024–2028.
Company Overview Of Inox Wind Energy
Inox Wind was established in 2009. It is a key player in offering wind energy solutions to the renewable energy industry. The company is a subsidiary of the Inox Group. It specializes in manufacturing wind turbine generators (WTGs) and provides comprehensive wind energy solutions. Inox Wind serves diverse clients, including IPPs, utilities, PSUs, corporates, and retail investors.
Inox Wind Limited has four cutting-edge production facilities in Gujarat (two plants), Himachal Pradesh, and Madhya Pradesh, with a combined manufacturing capacity of more than 2500 MW as of FY24. The company is a fully integrated player in the wind energy market and provides end-to-end turnkey solutions. Inox Wind Limited has a subsidiary of Inox Green, which is one of the leading Indian wind O&M services with a portfolio of 3.35 GW.
Segment And Revenue Analysis
The company has diversified its segments into manufacturing wind turbine generators (WTG), Turkey solutions, operation and maintenance, and erection, procurement, and commissioning (EPC) services.
Wind turbine generators (WTG): WTG is the core segment of Inox Wind, generating the bulk of its revenue. In FY 2024, the company’s revenue surged to ₹18 billion, a 144% increase compared to the previous year.
Turnkey Solutions: The turnkey segment includes project development services such as land acquisition, infrastructure development, and grid connectivity. Inox Wind offers end-to-end solutions, helping clients set up wind power projects.
Operation and Maintenance Services: Inox Wind also provides maintenance services for its WTGs, which is a stable revenue stream. However, this segment contributes a smaller portion of overall revenue compared to turbine sales.
EPC Services: The company is one of the top two wind EPC service providers in India and has a very strong presence in Western India. Inox Wind Limited is planning to expand its offerings in wind EPC and power evaluation to include crane services. It is the only company in India that provides vast services under one roof.
Financial Analysis Of Inox Wind Energy
| FY24 | FY23 | FY22 | FY21 | FY20 | |
|---|---|---|---|---|---|
| Revenue (in crores) | 1743 | 737 | 625 | 711 | 760 |
| Net Profit (in crores) | -53 | -671 | -483 | -307 | -279 |
| OPM (%) | 12.32% | -47.28% | -50.83% | -24.92% | -24.50% |
| ROCE (%) | 8.47% | -10.74% | -12.30% | -9.73% | 10.16% |
| Net Debt / Equity | 1.91 | 1.39 | 1.89 | 1.09 | 0.5 |
Looking deeply into the financial analysis of Inox Wind Limited, the company’s revenue has increased over the last two years. The revenue of the company has doubled in FY 2024 as compared to FY 2023. It has grown by 136.50%, which is from ₹737 crore in FY23 to ₹1743 crore in FY24. The revenue mainly comes from hubs and nacelles, blades, and tubular towers. The company’s revenue has grown at a CAGR of 23.06% over the last four years.
Inox Wind Limited has incurred a net loss over the last five years. The company’s net loss has increased from ₹279 crore in FY 2020 to ₹671 crore in FY 2023. After the year 2024, the net loss has reduced by around 92%, which is from ₹671 crore in FY23 to ₹53 crore in FY24.
However, despite the rise in revenue of 136.50%, the company has doubled the cost of materials consumed by 102.96%, and employee costs, depreciation, erection costs, and procurement costs increased slightly as compared to FY23. Additionally, the company’s efforts to reduce its financial costs and other expenses in the financial year 2024
Inox Wind Limited’s operating profit margin saw a positive shift in FY24, reaching 12.32% after several years of negative margins. The company’s ROCE has improved as compared to the previous year, which was from -10.74% in FY23 to a positive ROCE of 8.47% in FY24. It shows the company started with better utilization of capital.
The company has optimised ROE from -38.40% to -2.38%. Inox Wind Limited has increased its current borrowing from ₹1517.21 crore in FY23 to ₹2978.81 crore in FY24. Therefore, the company’s debt-to-equity ratio has risen to 1.91x from 1.39x in FY23.
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Order Book Of Inox Wind Energy
Inox Wind Limited has a strong order book of more than 2.9 gigawatts (GW) as of Q1 FY25. This unexecuted order book will provide a large source of revenue for the company. In the first quarter of FY25, the company received an additional order of 611 megawatts. The company supplies an order value of 140 megawatts.
The company order book has improved by 19.26% as compared to the previous quarter. Which is from 2,446 megawatts in Q4 FY24 to 2917 megawatts in Q1 FY25. The order book of the company has been broken up into an equipment supply that includes orders with a limited-scope EPC of 1091 megawatts and end-to-end Turney projects of 1826 megawatts. Inox Wind Limited has received an order from the central and state governments for 443 MW and captive and retail for 2474 MW.
The following chart shows the order book of Inox Wind Limited
Future Plans Of Inox Wind Energy
- Inox Wind is setting up a new nacelle manufacturing unit near Ahmedabad on a lease-rental basis, expected to be operational within the calendar year 2024.
- The company is expected to invest a CAPEX of around INR 50–75 crore in FY25. It is mainly helpful for molds for new products and larger blades.
- The company is targeting to execute projects with a wind capacity of 800 MW in the financial year 2025 and 1200 MW in the financial year 2026.
- Inox Wind Limited is predicted to target generating a wind power capacity of 2 GW per year in the near future.
- Inox Wind is evaluating value-unlocking opportunities through its EPC arm and value enhancement through the hybridization of existing common infrastructure for wind and solar projects.
- The company has secured a license for a 4 MW wind turbine generator platform, which is targeting the commercial launch of high-capacity turbines by FY2026.
- Inox Wind Limited currently holds an order book of over 2.9 gigawatts (GW), marking its largest ever. This impacts the company’s rapid scaling of its execution capabilities.
- Inox Wind has received a capital infusion of INR 900 crore from its parent company, IWEL. This investment has made Inox Wind’s net cash positive, significantly strengthening its balance sheet and achieving a net debt-free company.
Key Financial Metrics Of Inox Wind Energy
Some of the key financial metrics of Inox Wind Limited are given below.
| Particulars | Amount | Particulars | Amount |
|---|---|---|---|
| CMP | ₹214.49 | Market Cap (Cr.) | ₹28,598.00 |
| EPS (TTM) | ₹0.66 | Stock P/E (TTM) | 332.35 |
| ROE (TTM) | -1.59% | ROCE (TTM) | 4.29% |
| ROA (TTM) | 0.91% | P/B Ratio | 16.55 |
| Debt to Equity (TTM) | 1.91 | Current Ratio (TTM) | 2.61 |
| Promoters Holding | 48.27% | FII Holding (%) | 13.37% |
| Operating Profit Margin | 12.32% | Net Profit Margin | -3.03% |
Conclusion
We are at the end parts of the article on Inox Wind Limited. The company is steadily improving its financial health with a significant boost in revenue and a reduced net loss. The company is capitalizing on its robust order book to fuel future growth. Inox Wind is also expanding its manufacturing capabilities and has ambitious plans to execute wind projects in the upcoming year.
Inox Wind Limited is positioning itself as a crucial player in India’s renewable energy sector. These strategic efforts signal a strong future for the company. What do you think wind energy is contributing to sustainable energy in India? Let us know in the comments below.
Written By Nikhil Naik
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