Inox Wind Limited, India's leading wind power solutions provider, reported its financial results and financial performance for the second quarter of the financial year ending 31st March 2018.
We expect strong order inflow for the industry in H2FY18 to lay the foundation for FY19 on back of SECI auctions (4500MW), state auctions (Gujarat: 500MW) and PSU orders.
The wind industry is on track for FY19 to be the beginning of a phase of robust growth for the sector and towards achieving the government's target of 60GW wind power installations by 2022.
In our view, the wind power sector is entering the final phase of its journey to a complete auction based regime. The CERC released its order clarifying on connectivity issues on September 29th which paved the way for SECI-2 auctions. SECI conducted their 2nd auction of 1000MW on October 4th where Inox Wind was again the only WTG manufacturer to win 250MW order book at Rs2.65/unit. We look forward to participating and winning in the upcoming SECI and state auctions.
The current expected auctions pipeline is as follows:
- SECI - Three auctions of 1500MW each by March, 2018.
- State Auctions - Gujarat wind auctions of 500MW expected in November. Other states expected to come up with their auction guidelines within FY18.
- PSU - Over 700MW of orders in process
Mr. Devansh Jain, Executive Director of the company stated that "On expected lines, the continuation of the temporary downturn of the Indian Wind Power market impacted our Q2 results. We see the wind industry to be in the last phase of transition to a complete auction based regime. We expect normalisation, from an order inflow perspective, to commence from Q3 onwards, and execution to pickup from Q4 onwards. We are heartened by our win of 250MW in the SECI-2 auction taking our total auction based order book to 550MW. From a near term perspective, we look forward to upcoming SECI auctions, 500MW Gujarat state auctions and PSU orders for scaling our order book. We believe that our inherent cost-competitive advantage places us in an ideal position to benefit from the auction based market regime."
Shares of Inox Wind Ltd was last trading in BSE at Rs.126.85 as compared to the previous close of Rs. 138.65. The total number of shares traded during the day was 177738 in over 2067 trades.
The stock hit an intraday high of Rs. 139.1 and intraday low of 121.1. The net turnover during the day was Rs. 22994639.