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Inox Wind, a company engaged in manufacture of Wind Turbine Generator has registered a consolidated sales growth of 97% to Rs 1826.65 crore for the quarter ended March 2016. Higher sales together with 90 bps expansion in operating profit margin facilitated 108% growth in operating profit to Rs 299.47 crore. Spurred further by higher other income (up 423% to Rs 20.13 crore) the PBIDT was up by 116% to Rs 319.60 crore. However dragged by higher interest cost, higher forex loss and higher taxation, the growth at net profit stood moderated at 77% to Rs 209.23 crore.
Inox Wind Infrastructure Services (IWISL), the company's wholly owned subsidiary has acquired 100% equity shares in Satvik Energy (SEPL), Sarayu Wind Power [Tallimadugula] (SWTPL), Vinirrmaa Energy Generation (VEGPL) and Sarayu Wind Power [Kondapuram] (SWKPL) during the year ended March 31, 2016. As a result of these acquisitions SEPL, SWTPL, VEGPL and SWKPL have become wholly owned subsidiaries of IWISL with effect from November 19, 2015; December 9, 2015; January 23, 2016 and March 25, 2016 respectively and the consolidated results for Q4FY16 include results of SEPL, SWTPL, VEGPL and SWKPL with effect from the respective dates. So the results for the quarter and corresponding previous period are not comparable.
- The value of production for the quarter was up by 66% to Rs 1767.76 crore even while the sales (excluding other operating income) was up by 97% to Rs 1827.73 crore. Sales higher than value of production reflects liquidation of inventory buildup of earlier periods. According to the Q3FY16 results press release of the company, there was minor procedural delays affecting volumes for the quarter.
- Operating profit margin expanded by 90 bps to 16.4% and this is largely due to sharp fall in both material cost and EPC cost. Material cost as proportion to sales net of stocks was down by 160 bps to 60.9%. Similarly the EPC cost was down by 480 bps to 13.4%. But the staff cost and OE was up by 10 bps (to 1.6%) and 150 bps (to 7.2%) respectively.
Yearly performance
Sales were higher by 63% to Rs 4414.13 crore but with 10 bps expansion in OPM to 15.8%, the operating profit was higher by 64% to Rs 695.37 crore. After accounting for higher other income, higher interest and lower depreciation cost, the PBT before forex loss was up by 81% to Rs 646.13 crore. The forex loss was Rs 18.72 crore compared to a gain of Rs 31.56 crore in the corresponding previous period. Thus the PBT after forex loss was up by 61% to Rs 627.41 crore. Eventually the net profit was higher by 52% to Rs 451.87 crore strained further by 89% increase in tax provision to Rs 175.54 crore.
Order book update
Order book of the company as end of March 2016 stood at 1104 MW compared to 1146 MW as end of December 31, 2015.
The stock hovers around Rs 49.80.
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