Inox Wind and Inox Green shares dip by up to 5%; Inox Wind announces bonus issue date

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Inox Wind and Inox Green shares dip by up to 5%; Inox Wind announces bonus issue date

Team FS

06/May/2024

Key Points:

Market Reaction: Inox Green Energy Services witnesses a 5% drop in its shares following a decline in revenue and EBITDA, while Inox Wind basks in profitability with significant improvements in its financial performance.
Financial Highlights: Inox Green reports a 7.8% decrease in revenue and a substantial 20.7% drop in EBITDA, accompanied by a decline in margins. In contrast, Inox Wind marks a turnaround, transitioning from a net loss to a net profit, with remarkable revenue growth and improved EBITDA margins.
Future Prospects: Despite the current market downturn for Inox Green, Inox Wind's positive trajectory, marked by a forthcoming bonus issue and robust order book, hints at promising growth potential in the renewable energy sector.

The stock market landscape paints a tale of contrasting fortunes for Inox Green Energy Services and Inox Wind, two prominent players in the renewable energy sector. On Monday, Inox Green finds itself in a challenging position as its shares plummet by 5% in a lower circuit, reflecting investor concerns following a downturn in its financial performance. In contrast, Inox Wind shines brightly, celebrating a triumphant return to profitability and garnering investor confidence with promising growth prospects.

Delving into the financial intricacies, Inox Green grapples with a 7.8% decline in revenue for the January-March quarter compared to the same period last year. The company's Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) take a significant hit, plummeting by 20.7% year-on-year to ₹11.5 crore. Margin erosion further exacerbates the situation, with margins falling by over 350 basis points to 21.9% from 25.5% in the previous year. However, amidst these challenges, Inox Green manages to report a net profit of ₹20.3 crore, a notable improvement from the net loss of ₹1.8 crore incurred last year.

In stark contrast, Inox Wind emerges as a beacon of resilience and growth in the renewable energy landscape. The company not only returns to profitability but also showcases remarkable financial improvements. In the March quarter, Inox Wind reports a net profit of ₹37.7 crore, a significant turnaround from the net loss of ₹115.1 crore recorded in the previous year. EBITDA margins witness a commendable surge, standing at 19.4% compared to an operational loss of ₹23.8 crore reported last year. Revenue nearly triples from the year-ago quarter, soaring to ₹527.7 crore, signaling robust growth and market traction.

Looking ahead, the future prospects for both companies diverge on different trajectories. Despite the current market downturn for Inox Green, all is not lost. Inox Wind's positive momentum, underscored by a forthcoming 3:1 bonus issue and a substantial order book of 2.7 GW, hints at promising growth potential in the renewable energy sector. As Inox Wind continues to innovate and expand its footprint, investors keen on sustainable investments may find ample opportunities for growth and value creation in the dynamic renewable energy market.

Also Read : Britannia's shares see their biggest jump since November 2022, nearing record levels

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Inox Wind and Inox Green shares dip by up to 5%; Inox Wind announces bonus issue date

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