Inox Wind Ltd Q3 2025 Earnings Call Transcript

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

Question: Vishal Singh - Finvestors - Analyst : Thanks for the opportunity, sir, and congratulations for the blockbuster results. My first question will be we are done with 469 megawatts and another 331-megawatt is left. Are you still guiding us for 800 megawatts for this fiscal year, sir.

Question: Vishal Singh - Finvestors - Analyst : You are garbled sir, can you please repeat.

Question: Vishal Singh - Finvestors - Analyst : Okay. And what you see is that -- in Q3, we have maintained a 29% of EBITDA margin. And what I can see is blended margin for the three quarters for this fiscal year is 26.5% approx. So you had earlier guided us for 17% margin for this fiscal year. Are we still on the same margin or you're guiding for something more?

Question: Vishal Singh - Finvestors - Analyst : No, for the full fiscal year, are we on the 17% only or.

Question: Vishal Singh - Finvestors - Analyst : No. No, I understand that sir. Last time, we had talked about the demerger of that the EPT subsidiary. So on when that is going to happen, sir?

Question: Vishal Singh - Finvestors - Analyst : Okay, thank you very much, sir. And good luck for future. Thank you, sir.

Question: Aniket Nikumb - AFL Capital - Analyst : Thanks for the opportunity and congratulations on a great set of numbers, sir. My first question was maybe just picking up from the previous participant. In this quarter and in the nine months, we've delivered a sort of low 20s type margin already. So just wanted to check if some of our initiatives that we have talked about in terms of cranes and other sort of in-sourcing has started to be implemented and it is in the numbers already? Or is that going to happen a little bit later?

Question: Aniket Nikumb - AFL Capital - Analyst : Got it, sir. Very clear. My second question was maybe if you can comment a little bit on how are you thinking about your order book and participating in various tenders and so on because obviously, you are already sort of sold out for the next year. So how do customers view that? And how does that dynamic work? If you can give some qualitative comments on that will be helpful.

Question: Aniket Nikumb - AFL Capital - Analyst : Perfect, sir. Thanks again and all the best to you.

Question: Pradyumna Choudhary - JM Financial Ltd - Analyst : Congratulations on a brilliant set of numbers. My first question is regarding the FY26, like are we still maintaining that 1,200 megawatt guidance? Or are we expecting something above, something lesser if you can just help with that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 31, 2025 / 11:30AM, INWN.NS - Q3 2025 Inox Wind Ltd Earnings Call

Question: Pradyumna Choudhary - JM Financial Ltd - Analyst : All right. All right. And second, on the timeline for the demerger. Last call, you've spoken about approximately -- so we are still expecting to be around those timelines only or has there been any change?

Question: Pradyumna Choudhary - JM Financial Ltd - Analyst : No, well understood. Well understood. Thank you.

Question: Ketan Jain - Avendus Park - Analyst : Sir, as you mentioned in your opening remarks that there was around 15 gigawatt of wind capacity awarded in this year. And you said that C&I is above this. If you could help me quantify this number in gigawatt how big is the mid size in India annually?

Question: Ketan Jain - Avendus Park - Analyst : No, sir. What about the C&I capacity, which is over and above this? How big is that market?

Question: Ketan Jain - Avendus Park - Analyst : Understood. And just a last follow-up on this. Our market share in even and C&I would be around 20% to 25%?

Question: Ketan Jain - Avendus Park - Analyst : Yeah, sure, sure. Got it. Thank you.

Question: Shweta Dikshit - Systematix Shares & Stocks (India) - Analyst : Couple of questions from my side. The first one being, could you explain what composed of the other income this quarter for both Inox Green -- I mean, even if we remove a Inox Green of INR12 crores, that still brings our other income to INR70 crores this quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 31, 2025 / 11:30AM, INWN.NS - Q3 2025 Inox Wind Ltd Earnings Call So first of all, a breakup of that. Another thing, on the margin side, we're maintaining 18% for next year. Third question would be on the realization side that we are still lagging in terms of realization this quarter on a consol, we are still -- we're below INR5 crores per megawatt. So how do we see this moving forward for the next two years when our execution guidance remains intact?

Question: Shweta Dikshit - Systematix Shares & Stocks (India) - Analyst : So just for my clarity, if I look at the exceptional items also this quarter, so there are certain losses related to ECL that we've already accounted for in the exceptional item that is below EBITDA.

Question: Shweta Dikshit - Systematix Shares & Stocks (India) - Analyst : Okay. Understood. A follow-up on the realization side. So when we taking into account the EPC that is yet to kick off and that is expected to flow in fourth quarter onward. So that is something that kind of brings down or normalizes your EBITDA margin. So since this will also happen gradually, so at least for the first few quarters, we're likely to see higher EBITDA margins and then maybe taper down to 17%, 18%? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 31, 2025 / 11:30AM, INWN.NS - Q3 2025 Inox Wind Ltd Earnings Call

Question: Shweta Dikshit - Systematix Shares & Stocks (India) - Analyst : Right. One last question.

Question: Shweta Dikshit - Systematix Shares & Stocks (India) - Analyst : Okay, Thank you.

Question: Akash Mehta - Canara HSBC Life Insurance - Analyst : So just one question on -- like with the decline in battery prices that we have seen, now more solar plus battery is also like, I mean, coming up. So how do you see -- I mean, will there be any impact in terms of incremental demand for wind or I mean, you believe that wind, solar and battery all three will kind of continue to grow?

Question: Akash Mehta - Canara HSBC Life Insurance - Analyst : Okay. Thanks a lot. That's it from my side.

Question: Nikhil Abhyankar - UTI Mutual Funds - Analyst : Sir, I just have a single question regarding your execution of the number, which I have mentioned for nine months, 470 megawatts must be the supply of turbines. So if I have to understand what is the exact commissioning on ground for the turbines that we have supplied, if you can provide that number?

Question: Nikhil Abhyankar - UTI Mutual Funds - Analyst : So out of 470-megawatt, 200 has.

Question: Nikhil Abhyankar - UTI Mutual Funds - Analyst : And just a follow-up on that. I mean, are you seeing some stress -- I mean, since you are supplying and if the turbines are not getting commissioned, there will definitely come a time when the supply -- the customer might ask you to slow down the supply. So are we facing some kind -- that kind of situation anywhere?

Question: Nikhil Abhyankar - UTI Mutual Funds - Analyst : Sure. Sir, just a last question on the split of the order book, how much is EPC and how much is pure supply?

Question: Nikhil Abhyankar - UTI Mutual Funds - Analyst : One gigawatt is pure supply.

Question: Hansal Thakkar - Lalkar Securities Private - Analyst : Congratulations on yet another stellar quarter. Just a very quick question. Just trying to understand the applicability of the deferred tax this year. As I understand, we have carryforward losses still available. So is this deferred tax applicable to the other income, which is not available for a set of.

Question: Hansal Thakkar - Lalkar Securities Private - Analyst : It is just a onetime charge.

Question: Preet Nagareth - Wealth Finvisor - Analyst : So really, really happy to see this kind of execution and kudos to the team. I think the real question I wanted to ask is to Devansh. Devansh, the question is that this year, this financial year, I think there's a 1,300-odd plus kind of megawatt win on the order book, if I'm correct. And about 700-odd is coming from the group company. So just outside the group company, the company has won around close to 600 megawatts, while a lot of bidding has happened, a lot of winning has happened. So can you shed some light as to why that order win rate is a little bit lower? And what should we be looking at going ahead in terms of where this order book can be?

Question: Rohan Vora - Envision Capital - Analyst : Thank you for the opportunity. So the first question was, we had mentioned that we have plug-and-play facilities that are ready for evacuation to an extent. So how does that give us a competitive edge in a scenario where evacuation is a problem? So that was my first question. Thank you.

Question: Rohan Vora - Envision Capital - Analyst : So the next question was, while we maintain our guidance of 17% EBITDA margin, so then the back of the envelope calculation says that, because we'll be executing or completing more EPC in the fourth quarter, our margins will be in mid to low single digit. Would that be right, given that we are booking more revenue for the completion part of the project? Would that be the right way to look at it?

Question: Rohan Vora - Envision Capital - Analyst : Sure, sure. Got it. And the last question was just broadly seeing on the industry point of view, we see that there are some challenges on the land acquisition and the evacuation part. So do we feel that, that would impact our ability to do 800 megawatts this year or 1.2 gigawatts next year? And how does one look at it? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 31, 2025 / 11:30AM, INWN.NS - Q3 2025 Inox Wind Ltd Earnings Call

Question: Preet Nagareth - Wealth Finvisor - Analyst : Sure. Got it. Just one quick question was on the other businesses that we are developing, the cranes, et cetera. So what will be the CapEx outlay that one could factor in for FY26?

Question: Prateek Giri - Subh Labh Research - Analyst : Congratulations on a good set of numbers. Kudos to the entire team. I have -- most of my questions are answered. I have few questions left. On

Question: Prateek Giri - Subh Labh Research - Analyst : Understood, Devansh. Very helpful. Devansh, I just wanted some qualitative color on the order pipeline. I would like to take the previous participant's question further where the order inflow this year has largely been dominated by the companies. So just wanted to have some sense on the order pipeline for, say, I know FY26, we have booked, so FY27, '28 and so on and so forth. How does that look? I don't know if you quantify the number, but if you can help us understand in terms of the pipeline.

Question: Prateek Giri - Subh Labh Research - Analyst : Understood, Devansh, your point.

Question: Prateek Giri - Subh Labh Research - Analyst : Understood. Kailash, your voice was muffled, but I get your point. Just one follow-up on this. With this kind of order book at this point of time, does it make us a little picky and choosy with the tenders, which are remunerative enough for us to participate because for us, profits are the first.

Question: Prateek Giri - Subh Labh Research - Analyst : Understood. Is it fair to assume, Devansh, PSU, C&I and IPP, all these tenders come at different margin levels?

Question: Prateek Giri - Subh Labh Research - Analyst : Operator, probably we need your intervention here. I am unable to hear Devansh.

Question: Prateek Giri - Subh Labh Research - Analyst : Yes.