Photo: Bloomberg
Photo: Bloomberg

Inox Wind has sharpest ever drop as debt and receivables rise

Fourth quarter net income surged 78% to Rs2.09 billion from a year ago, though the after-tax margin narrowed to 11.4% from 12.7% during the same period

New Delhi: Inox Wind Ltd, a wind turbine maker, suffered the sharpest drop since it first sold shares to the public a year ago as short-term borrowing surged and margins narrowed.

Revenue almost doubled to 18.3 billion ($270 million) during the fiscal fourth quarter, which ended on 31 March, from 9.3 billion a year ago.

The reading was roughly in step with the median of six analysts’ forecasts collected by Bloomberg. India had a record 3.46 gigawatts of wind installations last year, industry data show.

Shares of Inox plunged 17% in Mumbai as investors focused on a jump in borrowing and concerns about the company’s working capital position, said Pawan Parakh, an industry analyst at HDFC Securities Ltd.

Inox first sold shares to the public in April 2015, taking advantage of Prime Minister Narendra Modi’s ambition to install more than 5 gigawatts of wind energy a year.

In a statement and investor presentation, Inox listed 14 billion of short-term liabilities at the end of the fiscal year, up 82% from a year ago. Trade receivables rose 69% to 24 billion.

Profit jumps

Fourth quarter net income surged 78% to 2.09 billion from a year ago, though the after-tax margin narrowed to 11.4% from 12.7% during the same period.

The trade payables also jumped to 11.7 billion for end of fiscal from 7.1 billion. Cash and cash equivalents dwindled to 4.8 billion as of 31 March from 7 billion.

The company has an order book of 1.1 gigawatts as of March-end. It achieved its highest ever annual installations by commissioning projects with a cumulative capacity of 786 megawatts during the last fiscal year, the company said in a press release. Bloomberg

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