Inox Wind (INOXWIND) Q1 24/25 earnings summary

Executive summary

• Achieved record Q1 FY25 performance with consolidated revenue of INR 651 crore (₹63,881 lakh), up 85% YoY, and EBITDA of INR 157 crore (₹15,664 lakh), up 349% YoY, marking the best Q1 in company history.

• Profit after tax reached INR 50 crore (₹5,038 lakh), reversing a loss of INR 65 crore (₹6,488 lakh) in Q1 FY24; cash profit stood at INR 92 crore (₹9,200 lakh) versus a cash loss of INR 36 crore (₹3,600 lakh) last year.

• Execution ramped up to 140 MW in Q1 FY25, up 112% YoY, with order inflows totaling 611 MW and a robust order book exceeding 2.9 GW.

• Promoter infusion of INR 900 crore (~Rs 900 cr) in July 2024 resulted in a net cash positive position, strengthening the balance sheet.

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

Financial highlights

• Q1 FY25 consolidated revenue: INR 651 crore (₹65,052 lakh), up 85% YoY; EBITDA: INR 157 crore (₹15,664 lakh), up 349% YoY; PAT: INR 50 crore (₹5,038 lakh) vs. loss of INR 65 crore (₹6,488 lakh) YoY.

• Cash profit: INR 92 crore (₹9,200 lakh) vs. cash loss of INR 36 crore (₹3,600 lakh) YoY.

• Execution increased to 140 MW, up 112% YoY; orderbook expanded to 2,917 MW, up 254% YoY.

• Finance cost for Q1: INR 58 crore, with INR 12 crore as one-time expense; expected to become negligible from Q2 onwards.

• Realization per MW expected to normalize at INR 6 crore once pending commissioning revenue is recognized.

Outlook and guidance

• FY25 execution guidance of 800 MW is on track; FY26 guidance of 1,200 MW may be revised upwards due to strong order inflows.

• EBITDA margin guidance maintained at 16%-17% for the full year, despite recent quarters exceeding this range.

• Market expected to grow to 5 GW in FY25 and 7-8 GW in FY26; company targets 20%-25% market share, focusing on profitability over volume.

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

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