Inox Wind Has Sharpest Ever Drop as Debt and Receivables Rise

  • Net income rose 78% in fourth quarter, while margins narrowed
  • Wind installations hit a record for both Inox and India

Inox Wind Ltd., an Indian 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 rupees ($270 million) during the fiscal fourth quarter, which ended on March 31, from 9.3 billion rupees 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 percent 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 rupees of short-term liabilities at the end of the fiscal year, up 82 percent from a year ago. Trade receivables rose 69 percent to 24 billion rupees.

Profit Jumps

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

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

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, company said in press release.

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