Inox Wind (INOXWIND) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue rose 93% year-over-year to INR 742 crores (₹73,224 lakh), with EBITDA up 171% to INR 189 crores and profit after tax at INR 90 crores, reversing a loss last year and marking the highest quarterly performance in 8 years.

• Achieved net cash status on the balance sheet as of September 30, 2024, and delivered positive operational cash flow in H1 FY25.

• Order book reached an all-time high of 3.3 GW, with 1.2 GW added in FY25 and execution maintained at 140 MW in Q2 FY25 despite monsoon challenges.

• Execution ramped up to 280 MW in H1 FY25, up 96% YoY, and the company achieved the strongest Q2 financial performance in 8 years.

• Consolidated revenue from operations for Q2 FY25 was ₹73,224 lakh, up from ₹37,064 lakh in Q2 FY24, reflecting strong year-over-year growth.

Financial highlights

• Revenue: INR 742 crores (₹73,224 lakh) in Q2 FY25 vs INR 384 crores in Q2 FY24 (93% YOY growth); EBITDA: INR 189 crores in Q2 FY25 vs INR 70 crores in Q2 FY24 (171% YOY growth).

• Profit after tax: INR 90 crores (₹9,020 lakh) in Q2 FY25 vs loss of INR 27 crores (₹2,684 lakh) in Q2 FY24; Cash profit: INR 138 crores in Q2 FY25 vs INR 1 crore in Q2 FY24.

• Execution: 140 MW in Q2 FY25, up 82% YoY; order book at 3,328 MW, up 161% YoY.

• Net interest expense at ₹28 crore, with one-time charges of ~₹6 crore; significant reduction expected from Q3 FY25.

• Basic and diluted EPS for H1 FY25 was ₹1.09, compared to a loss per share of ₹0.71 in H1 FY24.

Outlook and guidance

• Execution guidance maintained at 800 MW for FY25, targeting >1,200 MW in FY26 and >2 GW annual execution by FY27.

• EBITDA margin guidance upgraded from 15% to 17% for FY25, with further improvement expected as royalty payments end and backward integration progresses.

• Royalty on 3 MW turbines to end after FY25, adding INR 600,000 per MW to profitability from FY26.

• Tax rate expected to be nil for FY25 and FY26, rising to 25% in FY27.

• Strong revenue visibility for the next 2-3 years, backed by a large order book and pipeline.