Inox Wind , a leading player in the Indian wind energy sector, has reported a stellar performance for the second quarter, setting new benchmarks in its operational and financial metrics. The company's strategic initiatives and robust execution have positioned it for significant growth in the coming years.

Record-Breaking Q2 Performance

Inox Wind delivered exceptional results in Q2, with consolidated revenue soaring to Rs. 1,162.00 crores, marking a substantial 56% year-on-year increase. The company executed 202 MW during the quarter, bringing its total execution for the first half to 350 MW. This performance is particularly noteworthy given that Q2 is typically impacted by monsoons.

Financial Highlights

The company's financial performance for Q2 showcased remarkable growth across key metrics:

Strong Order Book and Future Outlook

Inox Wind boasts a robust and diversified order book exceeding 3.2 GW, providing strong visibility for future growth. The company is actively working on expanding its customer base and strengthening existing relationships. Management is in discussions with multiple customers, including the group's Independent Power Producer (IPP), to establish framework agreements that could secure over 1 GW of annual recurring orders.

Manufacturing Capacity Expansion

To support its growth trajectory, Inox Wind has expanded its manufacturing capabilities. The company's facilities, including the recently commissioned nacelle and hub unit at Kalyangarh, Gujarat, are operating at high utilization levels. Additionally, Inox Wind is establishing a new blade and tower manufacturing facility in South India to cater to projects in Karnataka, Andhra Pradesh, and Tamil Nadu.

Inox Green Energy Services: A Rising Star

Inox Green Energy Services , a subsidiary in which Inox Wind holds a 56% stake, reported impressive growth. Inox Green's total income for Q2 reached Rs. 129.50 crores, up 101% year-on-year. The company has expanded its renewable Operations and Maintenance (O&M) portfolio to 12.5 GW through strategic investments, positioning itself to become India's largest renewable O&M services company.

Industry Outlook and Government Initiatives

The Indian wind energy sector is poised for significant growth, with industry projections indicating annual installations of 5-6 GW in the current fiscal year, potentially increasing to 7-8 GW in the following year. Recent government initiatives, such as the reduction of GST on wind components from 12% to 5%, are expected to further boost the sector's growth.

Conclusion

Inox Wind's record-breaking performance in Q2, coupled with its strong order book and strategic initiatives, positions the company for sustained growth in the coming years. As India continues to push for renewable energy adoption, Inox Wind appears well-equipped to capitalize on the expanding opportunities in the wind energy sector.

Investors and industry observers will be keenly watching Inox Wind's execution in the second half, as the company aims to achieve its full-year guidance of 1,200 MW execution.

Inox Green Energy Services Limited (IGESL) has issued a clarification regarding the recent revocation of grid access for its 300MW wind project in Gujarat, emphasizing that this development does not materially impact the company's operations or financial outlook.

Key Points of Clarification

• Project Background: IGESL (formerly Inox Wind Infrastructure Services Limited) was awarded a 300MW wind power project in Kutch, Gujarat, in 2018.
• Grid Access Issues: The Central Electricity Regulatory Commission (CERC) upheld the decision by Central Transmission Utility of India Limited (CTUIL) to disconnect grid access for this project.
• Reasons for Project Unviability:
  • Significant delays in CTUIL's inter-connecting common evacuation infrastructure
  • Increased costs of Wind Turbine Generators (WTGs) and project infrastructure
  • Delays in land allotment, exacerbated by the COVID-19 pandemic

Impact on Inox Green

IGESL has stated that this event does not materially affect the company due to the following reasons:

1. Core Business Focus: IGESL's primary business is the operation and maintenance (O&M) of renewable power assets, not project development.
2. Extensive O&M Portfolio: The company manages approximately 12.5 GW of renewable assets, including 6.5 GW of wind O&M assets under its control.
3. No Financial Impact: The company asserts that this event will not affect its revenues or future guidance.

Company's Response

• IGESL is exploring all options, including the possibility of approaching the Appellate Tribunal for Electricity, based on legal advice.
• The company maintains that it promptly discloses all material events as required under SEBI Listing Regulations, and this particular event did not warrant such disclosure.

Future Outlook

Despite this setback, IGESL remains confident in its position in the renewable energy sector:

• The company is progressing towards becoming India's largest renewables O&M company.
• The broader INOXGFL Group controls significant project site infrastructure and grid connectivity, positioning it for future large-scale capacity additions.

This clarification from Inox Green Energy Services Limited underscores the company's focus on its core O&M business and its resilience in the face of project-specific challenges in the dynamic renewable energy sector.