Shares of this electric utility company are locked in 10% lower circuit; here’s why

Shares of Inox Wind were locked in 10 per cent lower circuit at Rs 147.65 as the company saw a block deal in the pre-opening trade. The sharp decline resulted from the steep discount in the stake sale price, which is reportedly executed at Rs 151 per share. 

As per reports, the company’s promoter entity Inox Wind Energy was looking to offload 5 per cent stake in the company via a block deal at a floor price of Rs 148-150 per share. This translates to a nearly 10 per cent discount to the stock’s last closing price.

Post the deal, the promoter's stake in the company will be reduced to 33.43 per cent as against 38.43 per cent earlier.

Inox Wind’s Q4FY24 earnings

The company’s PAT rose sharply sequentially as well as on a year-on-year (YoY) basis to Rs 38 crore. Revenue at the electric utilities company jumped 190 per cent on-year to Rs 563 crore. Further, EBITDA turned positive as against Rs 25 crore loss in the same period last year. The company’s robust orderbook at  around 2.7 GW provides large future revenue growth visibility. 

Commenting on the results, Kailash Tarachandani, CEO of Inox Wind, said, “Q4 has been a milestone quarter for the company as we successfully transitioned to 3 MW WTG supplies from 2 MW WTGs. Our EBITDA run rate in Q4 places us on a strong footing for FY25. Our debt levels have also come down drastically and we expect to be net debt free within H1 FY25. The macro tailwinds are reflected in the strong orderbook which stands at ~ 2.7 GW today. Our other initiatives including ramping up operations, strengthening our balance sheet, coupled with our large order book, will translate into higher order execution from FY25 onwards, resulting in strong growth in profitability.”

About Inox Wind

Inox Wind Limited is a provider of wind power solutions. The company manufactures wind turbine generators (WTGs) and provides turnkey solutions by supplying WTG.