CRISIL Upgrades Inox Wind’s Credit Ratings

On June 12, 2024, Inox Wind Limited (IWL), a prominent player in India’s wind energy sector, received a significant endorsement from CRISIL. The credit rating agency has recently upgraded both the long-term and short-term ratings of IWL’s banking facilities, reflecting a vote of confidence in the company’s financial health and operational efficiency.

Specifically, CRISIL has elevated Inox Wind Limited’s long-term rating from ‘CRISIL A-/Stable’ to ‘CRISIL A/Stable’ for its bank facilities. Moreover, the short-term rating has been upgraded from ‘CRISIL A2+’ to ‘CRISIL A1’. These enhancements underscore IWL’s strengthened position in the industry and ability to effectively meet financial obligations, further solidifying its standing as a leading wind energy solutions provider in India.

CRISIL’s decision to upgrade Inox Wind Limited’s rating reflects the company’s enhanced business risk profile, primarily attributed to substantial improvements in its operational performance.

CRISIL acknowledges Inox Wind Limited’s proactive efforts in deleveraging through equity raising, notably strengthening its financial risk profile. Looking forward, IWL benefits from a robust net order book of 2.7 GW as of May 31, 2024, offering clear visibility of significant revenue growth and sustained profitability.

This positive outlook is further supported by favourable policy dynamics in the wind energy sector, indicating a promising trajectory for IWL’s future performance.

In response, Mr Kailash Tarachandani, CEO of Inox Wind, said, “The latest rating upgrade by CRISIL is an outcome of all the efforts undertaken by the company in the recent past. We have successfully raised funds to strengthen our balance sheet and ramped up our operations. Further, with the transition to our state-of-the-art 3MW WTGs, we have embarked on a superlative growth journey with strong profitability. With the support and confidence of all our stakeholders, we are striding ahead from strength to strength.”

About Inox Wind Limited

Inox Wind Limited (IWL) is India’s top wind energy solutions provider. They serve clients such as IPPs, Utilities, PSUs, and Corporate investors. IWL is fully involved in the wind energy market, operating four modern manufacturing plants in Gujarat, Himachal Pradesh, and Madhya Pradesh.

On June 12, 2024, Inox Wind Limited’s share price opened at ₹153.16 and touched its highest price at ₹154.25 as of 01:11 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.