Inox Wind's Q1 net profit falls 34 pc to Rs 64 crore
Mumbai, Aug 7
Wind energy solutions provider Inox Wind Limited on Friday reported a 34 per cent year-on-year decline in consolidated net profit for the quarter ended June 30, as weaker operating profitability offset largely stable revenue performance during the period.
The company's consolidated net profit declining to Rs 64.1 crore from Rs 97.3 crore in the corresponding period last financial year (Q1 FY26), amid pressure on operating margins, according to its stock exchange filing.
Revenue from operations remained broadly flat during the quarter, slipping 1.5 per cent year-on-year to Rs 814.1 crore from Rs 826.3 crore in the year-ago period.
The company's operating performance weakened as earnings before interest, tax, depreciation and amortisation (EBITDA) fell 17 per cent to Rs 152.5 crore from Rs 183.7 crore a year earlier.
EBITDA margin narrowed to 18.7 per cent from 22.2 per cent, as per its regulatory filing.
Profit before tax also declined 31.2 per cent year-on-year to Rs 94.7 crore, compared with Rs 137.6 crore in the corresponding quarter last financial year.
Profit attributable to the owners of the company dropped more sharply to Rs 44 crore from Rs 105.9 crore a year ago.
The decline was partly influenced by a higher share of earnings attributable to non-controlling interests, which reported a profit of Rs 20.1 crore during the quarter against a loss of Rs 8.5 crore in the same period last year.
On a standalone basis, the company posted revenue of Rs 743.5 crore, up 3.9 per cent from Rs 715.6 crore a year earlier.
However, standalone net profit fell 17.5 per cent to Rs 71.5 crore from Rs 86.7 crore. Standalone EBITDA stood at Rs 158.7 crore for the quarter.
Among the issues highlighted were investments in six special purpose vehicles through inter-corporate deposits and bank guarantees amounting to Rs 55.78 crore, which remain subject to ongoing regulatory proceedings.
The company said it expects recovery of the deposits and release of the guarantees upon resolution of the matters.
— IANS
Reader Comments
The wind energy sector is crucial for our net-zero targets, but companies need to focus on operational efficiency. 18.7% EBITDA margin is decent but clearly under pressure. Let's see if they can bounce back in the coming quarters with better project execution.
Standalone revenue actually grew 3.9%, so the consolidated weakness is concerning. Those inter-corporate deposits of Rs 55.78 crore are a red flag - why are they putting money in SPVs when there are regulatory issues? Corporate governance needs to be tighter. 🤔
Good to see non-controlling interests turning profitable (Rs 20.1 crore vs loss earlier). But the drop in owner-attributable profit from Rs 105.9 crore to Rs 44 crore is massive - a 58% decline! Long-term investors might want to track this closely. Wind energy still has a bright future in India though. 🌬️
Looks like a mixed quarter - margins squeezed but keeping revenue stable. The regulatory overhang on those deposits is worth monitoring. India's renewable push is strong, so this is likely temporary. Would wait for Q2 numbers before making any judgments.
Profit fell but they're investing in SPVs for future projects yaar. This is the nature of capital-heavy industries - short-term pain for long-term gain. Plus with the government's wind energy targets, orders should pick up. Patience is key here. 💪
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