Wind energy solutions provider Inox Wind’s loss widened to ₹2.8 billion (~$34.7 million) for the third quarter (Q3) of the financial year (FY) 2023, as against ₹639.5 million (~$7.7 million) year-over-year (YoY).

The increase in net loss was attributable to the higher finance costs and other expenses.

Inox Wind’s other expenses during the quarter spiked to ₹1.95 billion (~$23.5 million), an increase of 254% YoY. In November 2022, Inox Wind repaid debts of ₹1.61 billion (~$19.46 million) as part of the strategic initiative to deleverage their balance sheets.

For the October-December quarter, the company’s financial cost rose 37% YoY to ₹943.4 million (~$11.4 million). Erection, procurement, and commissioning costs accounted for another ₹455 million (~$5.5 million), which also recorded an increase of 26.2% YoY compared to ₹360.4 million (~$4.3 million) in Q3 2022.

The company’s revenue during the quarter came in at ₹2.3 billion (~$27.6 million), an increase of 23% YoY. The company said the increase in revenue was on account of higher supplies.

The company’s Earnings before Interest, Tax, Depreciation, and Amortization in Q3 fell to a negative ₹1.7 billion (~$ 20.7 million), compared to ₹18.8 million (~$226,984) during Q3 2022.

Significant Developments during Q3 2022

Inox Wind completed the IPO of Inox Green Energy Services (IGESL) and raised ₹7.5 billion (~$90.5 million) in November 2022 to monetize O&M assets.

IGESL entered into third-party O&M services by signing a definitive investment agreement for acquiring a 51% stake in Ifox Windtechnik India, adding over 230 MW of O&M business to its portfolio.

In December 2022, the promoters infused ₹6.2 billion (~$75.34 million) into the company to clear its debts. This resulted in reduced debt in the wind business and the group company.

Other strategies the company uses to reduce debts include a reduction in interest-bearing liabilities to over ₹11 billion (~$132.7 million), including ₹3.3 billion (~$39.8 million) in IGESL.

9M FY 2022

Inox Wind, for the first nine months (9M) of the year in FY 2023, recorded a loss of ₹5.5 billion (~$66.4 million), compared to ₹1.7 billion (~$20.5 million) in the previous financial year.

The company’s total revenue stood at ₹5.5 billion (~$67 million), an increase of 5.7% YoY from ₹5.2 billion (~$63.2 million) during the same period in 2021.

The company’s EBITDA turned negative at ₹2.1 billion (~$ 25.3 million) during the period, compared with ₹94.5 million (~$1.1 million) in 9M FY22.

The company currently has a net order of 1178.7 MW to be delivered, of which SECI and NTPC orders account for 350 MW each, Orders from Adani total 501.6 MW, and retail and other orders 29.1 MW.

The company expects the order book to translate into revenues of ₹64 billion (~$773.6 million) over the next 24 months.

The company said the prototype of its new 3.3 MW wind turbine generator, launched in September 2022, has performed well during Q3 and expects the deliveries to commence soon.

The company plans to further its existing fleet of O&M projects of 3 GW and more profits through renewed O&M pricing. It also expects to add more business by acquiring O&M capacity from inactive O&M players, distressed OEMs, or non-OEM aggregators, who are primarily unorganized and financially weak.

Given the rise in demand from the commercial and industrial segment and group captive projects, increased participation from public sector undertakings in wind tenders, and the government’s push through favorable policy announcements, the company expects the wind tariff to stabilize, boosting wind adoption in the country.