Inox Wind Share Price 10% Down Owing to Weak Q1 Numbers

The morning of 6th September saw Inox wind share price fall steeply by 10%, post the declaration of Q1 numbers. The company witnessed a very shaky quarter, hence the stock opened at a decline of 20 points at Rs. 163. But on Friday, 2nd September, Inox wind share price settled below 0.86% at Rs. 191.65. The stock opened at Rs. 187.00 against its previous closing at Rs. 186.10., touching the day’s high and low at Rs. 193 and Rs. 185.85.

Inox Wind disclosed 80 percent fall in consolidated net profit at Rs 11.82 crore for June 30, 2016 quarter end. The firm had clocked a net profit of Rs 60.42 crore in the corresponding quarter of the previous financial year. Total consolidated income of the company slipped by 32 percent to Rs 435 crore in this quarter from Rs 644 crore during the same quarter in 2015-16. Its total expenses went further down at Rs 399 crore versus Rs 557 crore during the period under review. Devansh Jain, Inox Wind Executive Director mentioned that during June quarter, the company has adopted several steps that augur well for its long term performance. Higher production of Blade Sets and Towers compared to Nacelles and Hubs during the quarter has cleared the inventory backlog and will improve the working capital cycle of the company. He further added that the component manufacturing capacity of Inox Wind is also now fully aligned with doubling of the blade manufacturing capacity to 1,600 MW and better tower manufacturing capacity. The company also hopes significant traction in order inflow during the upcoming quarter with several order wins to be announced.

As seen on Q1 2016-17, significant inventory backlog has been cleared with higher production of blade sets and towers. As of date, the entire inventory backlog has been cleared, it further added. The company said that it is determined on increasing land bank further in South India. Multiple sites have been attained at very competitive acquisition cost in Andhra Pradesh. Inox has taken step into Karnataka. Sufficient land bank available with the firm as of June 2016 for installation of an aggregate capacity of more than 4,500 MW, the firm added. The company possesses huge order book position of 1,240 MW as of June 2016 holding very strong order inflow visibility going forward. On the competition between wind and solar power, Inox Wind said that wind tariffs are lower than solar tariffs in many states. Also, aggressive bids and unproven technology are raising concerns regarding viability of solar projects. Lenders are showing concerns in financing solar projects with tariffs as low as some of the bids seen, which indicates that some of the projects may not be commissioned. Proven technology and superior returns make wind energy the ideal sector for lenders.

As of now, Inox Wind share price is trading at its new 52 week low value at Rs. 167.95, touching the day’s high and low at Rs. Rs. 175 and Rs. 163.

Dynamic Levels have identified Inox Wind as one of the top 500 performing stocks for this quarter owing to its strong fundamentals. The 52 week high of Inox Wind share price is seen at Rs. 411.40 on 26th Oct ’15. The company has a market cap amounting to Rs. 4253.06 (Cr).

In order to acquire information on its closest support and resistance level refer to Inox Wind share price history.

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