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India

Auction shift hits Inox's full-year results

INDIA: Inox Wind's revenue and sales fell sharply in the country's 2018 financial year amid India's transition to an auction system.

Despite a difficult financial year, Inox stated that it can be a “major beneficiary in the auctioning regime"
Despite a difficult financial year, Inox stated that it can be a “major beneficiary in the auctioning regime"

Its revenue between 1 April 2017 and 31 March 2018 was down 85.9% year-on-year, dropping from INR 34.15 billion ($503.2 million) to INR 4.79 billion.

The manufacturer also went from an operating profit (Ebitda) of INR 6.25 billion to an operating loss of INR 561.2 million over the course of the year.

It commissioned 172MW over the 12 months — down 73.7% from the 656MW it put into operation a year earlier.

As it had done when it announced quarterly results in February, Inox reiterated its belief that its results in the 2018 financial year "reflect the transition to the auction regime in the Indian wind power sector".

This shift to an auction-based system has led to reduced turbine sales and installations as developers and financial institutions adapted to the new rules and lower prices.

However, Inox remained optimistic, having grown its order book to 950MW following 7.5GW of auctions being held throughout the year — including 4.5GW in the fourth quarter of the year.

The manufacturer had won 350MW in the SECI (Solar Energy Corporation of India) and Maharashtra state auctions in the last three months of the financial year, it stated.

The company added that it anticipates the 2019 financial year — in which it expects 10GW to be tendered — will mark the "beginning of a phase of robust growth for the wind industry".

Inox stated that it believes it can be a "major beneficiary in the auctioning regime". 

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