Inox Wind Ltd Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Prit Nagersheth - Wealth Finvisor - Analyst : Yes, congratulations on the good set of numbers. The question I have is regarding the impact of commodity prices. So what we are seeing is that a lot of steel and other commodity prices are coming down. So I wanted to understand if there is a pass through system that you have or what would you gain because of the prices coming down?

Question: Prit Nagersheth - Wealth Finvisor - Analyst : Right. The other thing, Devansh, that we would love to know is that one of the large MNCs is right on the block now. Are you looking to participate in that -- acquiring the business of that MNC?

Question: Prit Nagersheth - Wealth Finvisor - Analyst : Regarding the guidance for next year of 1,200 megawatt, you were mentioning that you may revise it upwards. So could you share what are you seeing that's making you think of revising it upwards? And if yes, how much would you revise it by?

Question: Prit Nagersheth - Wealth Finvisor - Analyst : So you said over the 14%, 15% that you were talking, there's a chance that this could move up. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 09, 2024 / 11:30AM, INWN.NS - Q1 2025 Inox Wind Ltd Earnings Call

Question: Prit Nagersheth - Wealth Finvisor - Analyst : And what about the 800 megawatts for this year? Do you think that's on track?

Question: Gokul Raj - Bavaria Industries Group - Analyst : Good evening, Devansha and team. Congrats on a fantastic quarter and the overall three-year turnaround that you guys have done. Two questions from my end. One is on Resco on the O&M bit. Would this also be broad-based platforms where you will do things outside of Inox turbines and stuff like that and also would evolve into broader renewable platforms like solar or stuff like that? Or is it just on the wind chain and primarily on Inox Wind related stuff? And the second question is what's the update on the Inox Wind Energy merger?

Question: Shweta Dikshit - Systematix Group - Analyst : Hello. Good evening. My first question would be if you look at the realization number this year -- this quarter, it is around INR4.6 crore per megawatt at an execution of 140. Could you split this execution in terms of what were the pure equipment supply this quarter and what were actual installations for wind turbines this quarter?

Question: Shweta Dikshit - Systematix Group - Analyst : And, sir, in terms of our supplies of all the components, we still are looking at a realization lower than what otherwise is around INR6 crore to INR6.5 crore -- or INR5.5 crore for the entire equipment supply, still we are on the lower side in terms of realization. Can you explain that?

Question: Shweta Dikshit - Systematix Group - Analyst : Okay, understood. Another question was since last year we've seen a capital infusion of around INR2,100 crore approximately into the company, can you highlight what has been the debt repayment in this period consolidated, excluding any working capital borrowings now which were taken on?

Question: Shweta Dikshit - Systematix Group - Analyst : Okay, understood. One last question, if I could squeeze in. Regarding the nacelle manufacturing unit, if I missed it, what would be the CapEx for this facility?

Question: Shweta Dikshit - Systematix Group - Analyst : Okay. I understand the INR4 crore per annum lease rental, but there won't be any investment in terms of machinery or equipment, et cetera?

Question: Abhishek Shah - Ambit GPC - Analyst : Hi. Good evening, team, and again, congratulations on another spectacular quarter. Just a few quick questions. So firstly, on accumulated losses, would we still maintain that we would essentially be paying no tax, more or less on FY25 and possibly on FY 26? And secondly, on the finance cost, this quarter was around INR58 crore, out of which, I think, INR12 crore was a onetime expense. So if you can just give us a guidance on what that would look like for the full year?

Question: Abhishek Shah - Ambit GPC - Analyst : Okay. Thank you so much. And just -- sorry, if I can just squeeze one last. So the entire 800 megawatts of -- most of it in the current financial year would all be 3 megawatts, right, and 3 megawatts of turbine gig forward?

Question: Rohan Vora - Envision Capital - Analyst : Hello. thank you for the opportunity and congratulations on the numbers. So two questions. One, just a doubt. So basically, when you said 110 megawatts was just pending for one-off certification. So that 110 is a part of 140, and that is why INR150 crore of revenue is not booked. Am I right in understanding that?

Question: Rohan Vora - Envision Capital - Analyst : So on a blended -- once normalized revenue is booked, blended will be reaching around INR6 crore per megawatt. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 09, 2024 / 11:30AM, INWN.NS - Q1 2025 Inox Wind Ltd Earnings Call

Question: Rohan Vora - Envision Capital - Analyst : Okay, thank you. And one more question was on the fixed cost run rate. So what is the fixed cost run rate, annual run rate as of date?

Question: Rohan Vora - Envision Capital - Analyst : INR110 crore. And as we scale up, massively, how do we see that increasing? Any directional idea on that?

Question: Subrata Sarkar - Mount Intra Finance Private Limited - Analyst : Yeah. Sir, I have a small good like understanding that I need to have and this is regarding only the merger. So post-merger, can you help me to understand what will be the fully -- on a fully diluted basis number of equity share and what will be the face value on that, so that I can get an understanding of how things will--?

Question: Subrata Sarkar - Mount Intra Finance Private Limited - Analyst : Okay. This is number of equity share face value. Can you help me on that? Or you are talking about this is the number of shares?

Question: Subrata Sarkar - Mount Intra Finance Private Limited - Analyst : Okay. And that that will be a face value of what, sir? Like, what will be the equity capital in this case?

Question: Subrata Sarkar - Mount Intra Finance Private Limited - Analyst : Okay. Perfect, sir. Sir, just one question on the execution side and on the payer, can you -- is it possible to at least share a ballpark number of what is our working capital days right now or -- on that side?

Question: Avishek Datta - Anand Rathi Shares and Stock Brokers Ltd - Analyst : Sir, congratulations on great set of numbers. Just had one clarification I needed, like in the presentation you have mentioned about value unlocking to EPC arm and value enhancement through hybridization of common infrastructure. So what exactly you mean by that?

Question: Avishek Datta - Anand Rathi Shares and Stock Brokers Ltd - Analyst : Okay. But at no point, you are planning to execute other wind big EPC projects?

Question: Avishek Datta - Anand Rathi Shares and Stock Brokers Ltd - Analyst : Okay. But just to get it right, like cranes, already we've players who are leasing their cranes to EPC players. Now you want to buy those cranes and do it in-house?

Question: Avishek Datta - Anand Rathi Shares and Stock Brokers Ltd - Analyst : Okay, and in the near term, how do you see the PSU orderbook shaping up?

Question: Avishek Datta - Anand Rathi Shares and Stock Brokers Ltd - Analyst : Sir, one more thing, like you are looking to set up a new manufacturing unit for nacelle (inaudible) so what is the rationale given the fact that our capacity is over 2.5 gigawatt and we are currently targeting to deliver 800 megawatt and 1,200 megawatt over the next two financial years? What is the rationale to expand capacity? I know it is -- the lease expenses are much lesser. Sir, what is the rationale for that?

Question: Avishek Datta - Anand Rathi Shares and Stock Brokers Ltd - Analyst : Okay. And so what will be the CapEx for this year?

Question: Avishek Datta - Anand Rathi Shares and Stock Brokers Ltd - Analyst : Yeah, just (multiple speakers) continuation to that. What is the CapEx for this year?

Question: Avishek Datta - Anand Rathi Shares and Stock Brokers Ltd - Analyst : And next year?

Question: Anuj Upadhyay - Investec Capital Service - Analyst : Yeah, hi. Thank you. Sir, how much NCRPS will remain with the company post-merger? And what would be our plan for the same?

Question: Anuj Upadhyay - Investec Capital Service - Analyst : INR560 crore.

Question: Anuj Upadhyay - Investec Capital Service - Analyst : And how do we plan to --?

Question: Anuj Upadhyay - Investec Capital Service - Analyst : And the plan on the balance one, you mentioned that INR560 crore, INR580 crore would still remain. How do we plan -- the promoters plan to (multiple speakers)

Question: Anuj Upadhyay - Investec Capital Service - Analyst : Okay. And sir, what market share are we targeting going ahead, factoring now the entire wind market side has gone up to -- from 2 gigawatt hour level to nearly 7 to 8 gigawatt on an annual basis? One is this. And then, current capacity which we have, how much can we execute intake order on an annual basis?

Question: Anuj Upadhyay - Investec Capital Service - Analyst : Sure, sir. And just one clarification on a question that previous participant, the INR50 crore, INR60 crore CapEx you mentioned is your routine CapEx or is the CapEx we plan to incur launched plant -- Ahmedabad nacelle plant

Question: Sanjay Kular - ACME Private Limited - Analyst : Okay. Thanks for taking my question. Mr. Jain, first of all, I would like to compliment to you and your team for extraordinary turnaround and rewarding shareholders with a liberal bonus issue in the first year of the turnaround itself. You are truly visionary, next-gen entrepreneur who was created unprecedented wealth on the seat. My question is only one, which is very simple. What is the key differentiator we will have with our peer group company in terms of execution, in terms of profitability? Would you like to share some thoughts? Thanks.

Question: Prateek Giri - Subh Labh Research - Analyst : Hi, Devansh. Congratulations to the entire team for amazing set of numbers. Whatever has been promised, it seems we are on track to deliver that. My question to Kailash is Kailash, we have been -- since last three quarters, we have seen our margins beyond 18%, you know, 18%, 19%, and 21% this quarter. That too, in these three quarters, our realization has not crossed INR5 crore per megawatt, but still we have made handsome margin. So I'm just wondering what is holding us from revising our margin guidance. I'm not asking you to revise it, but just if you can kind of help us with some color, Kailash.

Question: Prateek Giri - Subh Labh Research - Analyst : No, I totally understand. But since last three quarters, gentlemen, the margins have been crossing that and the realization has also been low. So I mean how should we look into it then? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 09, 2024 / 11:30AM, INWN.NS - Q1 2025 Inox Wind Ltd Earnings Call