Inox Wind Ltd., a leading provider of wind energy solutions, has entered into a significant consortium agreement with a group of banks, securing facilities valued at ₹2,200 crore. The consortium, comprising 10 prominent financial institutions, is led by ICICI Bank, and includes other well-established private sector and international banks, according to a filing made by Inox Wind to the stock exchange.
Notably, the approved limits have been sanctioned without recourse to corporate guarantees from any of Inox Wind’s parent or affiliate companies, the company revealed in its exchange filing. Inox Wind highlighted that with this new financial arrangement, any previous corporate guarantees or similar forms of financial backing extended to the company by Gujarat Fluorochemicals Ltd. have either been nullified or will soon be vacated.
This marks a significant shift for Inox Wind, as it demonstrates increased confidence in the company’s independent financial standing. Furthermore, Inox Wind mentioned that these credit limits could potentially increase to nearly ₹2,400 crore, based on an updated working capital assessment conducted by ICICI Bank.
Importantly, these facilities are primarily non-fund-based, meaning they largely involve instruments such as letters of credit or bank guarantees, and are a reflection of the growing strength of Inox Wind’s balance sheet. The company attributes the approval of these facilities to its improved financial position, supported by recent successful fundraising efforts and increased operational efficiency.
Inox Wind has experienced a remarkable turnaround in its financial health, with the company now operating with a net cash-positive balance sheet. This is a significant achievement for the wind energy firm, positioning it for further growth and expansion in the renewable energy sector.
In the first quarter of the current fiscal year, covering the period from April to June, Inox Wind reported a staggering 83% year-on-year growth in its revenues, reaching ₹638.8 crore, compared to the same quarter last year. This robust performance was accompanied by a net profit of ₹48 crore, a substantial improvement from the ₹63.5 crore loss reported in the same quarter the previous year.
Looking ahead, Inox Wind has projected profit margins for the fiscal year in the range of 15% to 16%. However, the company has indicated there may be room for these margins to improve as it continues to scale operations and optimize its cost structure.
The positive outlook has been well received by investors, with shares of Inox Wind closing 7.5% higher on Friday at ₹259.6. The stock has witnessed a near-doubling of its value in 2024, with an impressive gain of 98% so far this year, reflecting growing confidence in the company’s future potential.
Inox Wind Ltd. is a leading provider of wind energy solutions in India, specializing in the manufacture and installation of wind turbine generators. With a strong focus on renewable energy, the company offers end-to-end services including wind resource assessment, project development, and operations. Inox Wind plays a pivotal role in driving India’s shift towards sustainable energy sources.
