Inox Wind Bags Order for 200 MW for its 3 MW WTGs

Inox Wind Limited, a leading wind energy solutions provider in India, has secured a significant order for 200 MW from a renewable commercial and industrial (C&I) power producer. The project involves the installation of Inox Wind’s latest 3 MW Wind Turbine Generators (WTGs) and will be executed on a turnkey basis.

Additionally, the company will provide multi-year operations and maintenance (O&M) services post commissioning. This project is set to be carried out in Gujarat and Rajasthan.

This order underscores Inox Wind’s position as a favoured partner in the renewable energy sector, bolstered by their proven track record of executing large-scale wind projects. CEO Kailash Tarachandani expressed optimism about the company's growth prospects, citing a robust order book and a strong pipeline that position Inox Wind for substantial growth in FY25 and beyond.

However, while the news is promising, it raises several points of critical analysis. Firstly, the reliance on turnkey projects indicates Inox Wind’s comprehensive approach, but also highlights the operational risks associated with such large-scale implementations. The successful execution of the project in diverse geographical areas like Gujarat and Rajasthan will test the company's logistical and operational capabilities.

Furthermore, the post-commissioning O&M services commitment reflects a long-term partnership strategy, ensuring continued revenue streams. Yet, this also implies a sustained operational burden, which requires efficient resource management and consistent performance to maintain client satisfaction over the years.

While Inox Wind’s new order for 200 MW demonstrates their market leadership and growth potential, it also brings to light the challenges and responsibilities that come with large-scale project execution and long-term service commitments.

Read the full Press Release Here

Market Reaction 

On July 9, 2024, Inox Wind Limited's stock exhibited significant volatility, opening at ₹165.00 and reaching a high of ₹168.90 before dipping to a low of ₹157.10. The stock eventually closed at ₹159.01, slightly above the last traded price of ₹160.60. The previous close was recorded at ₹158.15.

The high trading volume of 1,59,92,326 shares, with a total value of ₹2,60,13,94,840.23, indicates a strong investor interest. Despite the fluctuations, the volume-weighted average price (VWAP) stood at ₹162.67. Notably, the stock remains far from its 52-week high of ₹663.00 and closer to its 52-week low of ₹124.25.

The market's reaction, evidenced by 99,491 trades, suggests a mixed sentiment among investors, possibly either due to recent announcement of 3 MW Wind Turbine Generators (WTGs) project or broader market conditions. The fluctuation within the day shows investor caution and varied opinions on the stock's short-term prospects the NSE data showed.

Inox Wind Limited

Inox Wind Limited (IWL) is India’s top wind energy solutions provider, serving independent power producers, utilities, public sector units, and corporate investors. Part of the US$ 8 billion INOXGFL Group, IWL focuses on chemicals and renewable energy.

It operates four advanced manufacturing plants in Gujarat, Himachal Pradesh, and Madhya Pradesh, producing blades, tubular towers, hubs, and nacelles. With a manufacturing capacity of approximately 2.5 GW annually.

IWL offers end-to-end wind energy solutions, from concept to commissioning and maintenance, using advanced technology. Its subsidiary, Inox Green Energy Services Ltd., is India's only listed wind operations and maintenance services company.

IWL is recognized for its quality, reliability, and cost competitiveness, holding multiple ISO certifications and supported by strong promoter backing and a healthy balance sheet.