Inox Wind clinches massive 1,500 MW wind power deal with CESC; stock hits fresh 52-week high

In a landmark agreement, Inox Wind, India’s one of the leading wind energy solutions providers, has signed a binding framework agreement with CESC Limited, a major power utility, to install and supply 1,500 MW of wind power capacity over the next 3-4 years. This marks the single largest wind project order ever secured by an Indian wind turbine manufacturer.

The deal involves 1,000 MW of wind turbines to be executed on a turnkey basis, meaning Inox Wind will handle everything from site development to commissioning. The remaining 500 MW will involve equipment supply along with limited EPC (engineering, procurement, and construction) services.

Inox Wind’s latest DF/3000/145 wind turbine generators, each with a minimum capacity of 3.3 MW, will be used for the project. Additionally, Inox Green Energy Services, a subsidiary of Inox Wind, will provide multi-year operations and maintenance (O&M) services for the wind farms once operational.

This monumental agreement not only highlights India’s growing commitment to renewable energy but also solidifies Inox Wind’s position as a leading player in the wind energy sector. The positive news also propelled the company’s stock to a new 52-week high.

The company recently got a Rs. 800 crore cash injection from its parent company, strengthening its financial standing. Inox Wind Energy Limited raised the funds by selling IWL shares on the stock exchange, attracting prominent investors. The money will be used to pay down the company’s existing debt, marking a key step towards profitability.

Financial Performance

In Q2FY24, the company posted 246% growth in its consolidated revenue at Rs 370.64 crore compared to Rs 107.11 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 62.09 crore, while the PAT of the company stood at a loss of Rs 29.23 crore, from a loss of Rs 129.31 crore.

Business Overview

Inox Wind Limited is a part of the Inox Group. The company is engaged in the business of manufacturing Wind Turbine Generators (WTGs) and is a wind energy solutions provider servicing IPPs, Utilities, PSUs, Corporations, and Retail Investors. Inox Wind Ltd is a fully integrated player in the wind energy market and provides end-to-end turnkey solutions.

Stock Price Movement

Today, the stock opened at Rs 572.55, with a high and low of Rs 579 and Rs 553.30, respectively. The stock is currently trading at Rs 554.30, which increased by 2.24%. The stock has a 52-week high of Rs 579 and a 52-week low of Rs 90.50.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

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.