India

India

Inox maintains profitability streak

Indian manufacturer Inox recorded its third consecutive quarter of profitability, as it adapted to the country's auction regime.

Inox currently has 950MW of firm orders, of which it has already fulfilled 244MW
Inox currently has 950MW of firm orders, of which it has already fulfilled 244MW

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The company’s INR 610 million (US$ 8.5 million) operating profit in the third quarter was up from a loss of INR 180 million one year earlier.

Meanwhile, it recorded an operating profit of INR 1.84 billion between the start of April 2018 and the end of December, compared to a INR 520 million loss in the same period a year ago.

The manufacturer’s revenue also increased year on year: up 329% to INR 3.91 billion in the quarter, and up 355% to INR 12.58 billion in the nine-month reporting period.

Inox stated that the auction system in India had provided a strong order inflow and that it expects "robust and sustainable growth".

The manufacturer pointed to a 950MW order book composed of capacity it had secured itself in the first four national auctions and the state tender in Maharashtra, and of capacity awarded to developer Adani Green Energy.

It has already supplied 244MW of those contracts, leaving it with a net order volume of 706MW.

The manufacturer has also received a letter of intent to supply Adani with 501.6MW of turbines, increasing this total to more than 1.2GW.

Inox added that these orders would translate into revenue of more than INR 72 billion over the next 18 months.

The company has previously stated 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, following its third successive profitable quarter, the manufactuer stated: "With almost 9GW of auctions conducted in the past 12 months and various auctions lined up over the next few months, there is a strong visibility on order inflows for the Indian wind power sector.

"We expect the sector to see a period of robust and sustainable growth."

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