Inox Wind Q2- Beat On High-Margin Order Execution, Lower Costs; Upward Revision In Margin Guidance: Systematix

Systematix Research Report

Inox Wind Ltd.’s Q2 FY25 revenue of Rs 7.3 billion (+98% YoY, +15% QoQ) was 4% below our estimate. Ebitda (excluding other income) at Rs 1,729 million grew by 3.6x/27% YoY/QoQ and was 20% above our estimate due to higher share of equipment supplies compared to wind turbine generator commissioning and EPC.

Ebitda margin for the quarter came in at 23.6%, improving by 1,058 bps/231 bps on a YoY/QoQ basis. Inox Wind executed 140 MW orders in Q2 FY25 versus 140 MW/77 MW in Q1 FY25/Q2 FY24. Standalone revenue and Ebitda were reported at Rs 6.8 billion (+105%/+11% YoY/QoQ) and Rs 983 million (+8.6x YoY), respectively.

The company’s operations and maintenance subsidiary Inox Green Energy Services Ltd. reported Q2 FY25 revenue and Ebitda (incl. other income) of Rs 552 million (+16%/+8% YoY/QoQ) and Rs 278 million (+17%/+34% YoY/QoQ), respectively. Inox Wind’s interest costs fell by 31%/24% YoY/QoQ to Rs 443 million in Q2 FY25. The company turned net cash positive with Rs 2.78 billion net cash as of September 2024. Management upholds its execution target of 800 MW/1,200 MW for FY25/FY26 with an upward revision in Ebitda margin guidance by 200 bps to 17% for FY25.

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