Inox Wind Ltd.'s order book at the end of the first quarter gives the company a large revenue visibility for the next two years, according to Devansh Jain, executive director of the Inox Group. It stood at 2,917 megawatts in the April-June period, compared to 2,446 megawatts at the start of the financial year.
The company currently earns around Rs 6 crore per megawatt, Jain said. This means the company's current order book could have a revenue potential of Rs 17,502 crore over the next two years.
Order Book Execution
Inox Wind has guided to execute 800 megawatts and 1,200 megawatts of orders in FY25 and FY26, respectively.
The company executed around 140 megawatts of orders in the first quarter, which means that 17.5% of the company's execution guidance for the current fiscal is complete.
The first two quarters of the financial year typically see lower execution due to the onset of monsoons, according to Jain. Usually, around 65% of the execution takes place in the second half of the financial year, he said.
Last fiscal, the company did not meet its order execution guidance of 420 megawatts. Management did note that the 376 megawatts executed stood almost 6 times higher than company's 70-80 megawatts execution range, five years ago. Inox Wind's execution in the June quarter stood 112% and 9% higher on an annual basis and sequential basis.
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Future Opportunity
In the domestic wind turbine generator space, the company has around 16% market share currently, which it aims to grow to 20-25% in the next two years, Jain said.
As wind energy is one of the cheapest source of power, the space is a multi-decadal opportunity, he said.
Jain expects the domestic wind energy market to be at 5 gigawatts and 6 gigawatts in FY25 and FY26, respectively. From FY27, onwards the domestic market would be off 8-10 gigawatts each year, he said.
India's current wind energy capacity of 46 gigawatts has the potential to grow to 80 gigawatts in the next eight years, the company said in its first quarter presentation.
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