- Revenue fell 32% from fiscal first quarter a year ago
- Company says margins will return to historical levels
Inox Wind Ltd., an Indian wind turbine maker, posted an 80 percent drop in profit in its fiscal first quarter because of a difference in the pace of production different parts for its machines.
Profit fell to 118 million rupees ($1.77 million) in the three months through June 30 from 604 million rupees a year ago, according to statement released late Friday from its headquarters in Noida. Revenue dropped 32 percent to 4.3 billion rupees over the same period last year, the company said in its earnings presentation.
"Higher production of blade sets and towers vis-a-vis nacelles and hubs during the quarter, done to clear the inventory backlog, affected year-on-year growth in revenues and margins," Devansh Jain, executive director of the company, said in a press release.
Inox made blades for machines with 198 megawatts of capacity and towers that can hold nacelles with 148 megawatts. It produced 40 megawatts of nacelles and hubs in the quarter.
This is different from the last quarter when the firm’s production was more even at 120 megawatts of blades, nacelles and hubs, and 140 megawatt of towers.
Inox Wind’s shares closed 5.6 percent higher at 191.65 rupees in Mumbai trading before the results were announced.
The turbine manufacturer said it expects improvements in the coming quarters and that margins will return to historical levels. It will synchronize component supply, reduce the lag between equipment delivery and improved payment terms with customers, according to the earnings presentation.
Employee expenses rose 54 percent in the quarter, and finance costs climbed by 75 percent.
The company had an order book of 1.24 gigawatt as of June 2016.