Inox Wind (INOXWIND) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 marked the highest financial performance in company history, with consolidated revenue from operations reaching INR 651 crore (₹63,881 lakh), up 85% year-over-year, and a net cash positive position following a capital infusion of INR 900 crore by the parent company.

• Execution ramped up to 140 MW in Q1 FY25, up 112% YoY, with a robust order book exceeding 2.9 GW, providing strong revenue visibility.

• Strategic focus includes value unlocking through the EPC and O&M arms, hybridization of infrastructure, prudent capital allocation, and targeted acquisitions.

• Promoter infusion resulted in a net cash position; interest expense included a one-time charge of INR 12 crore, with future finance costs expected to be negligible.

• The group completed a settlement with a major customer, resolving outstanding balances and taking back uncommissioned WTGs.

Financial highlights

• Consolidated revenue rose to INR 651 crore in Q1 FY25, up 85% YoY from INR 352 crore; EBITDA increased to INR 157 crore, a 349% YoY jump from INR 35 crore.

• Profit after tax reached INR 50 crore, compared to a loss of INR 65 crore in Q1 FY24; cash profit was INR 92 crore, versus a cash loss of INR 36 crore a year ago.

• Sequential revenue growth was 16% and EBITDA growth was 12% from Q4 FY24.

• Interest payments for the quarter were INR 58 crore, expected to become negligible going forward due to the net cash position.

• Standalone revenue for Q1 FY25 was ₹60,729 lakh, with a net profit of ₹7,019 lakh.

Outlook and guidance

• Execution guidance for FY25 remains at 800 MW, with upside potential for FY26 beyond 1,200 MW, driven by a strong order book and operating leverage.

• EBITDA margin guidance for the full year is 16%-17%, with potential for improvement due to product mix and cost optimization.

• No tax expected to be paid in FY25 and FY26 due to accumulated losses and depreciation.

• CapEx for FY25 and FY26 is guided at INR 50-75 crore annually, mainly for molds, with minimal CapEx for new manufacturing facilities due to a lease model.

• Management expects realization of inventory and recovery of funds from SPVs as state wind farm policies are now announced.