Inox Wind has posted a decent set of numbers in its fourth quarter with a 7 percent rise in its total income at Rs 930 crore as against Rs 869 crore year on year.
Discussing the details, Devansh Jain, Director, Inox Wind, said the fourth quarter is typically focused on executing existing orders.
The company’s current order book, bulk of which has been built over Q1 and Q2, stands at over 1,400 mw, Jain said.
Below is the transcript of Devansh Jain’s interview with CNBC-TV18's Sonia Shenoy and Anuj Singhal.
Sonia: We have just your topline number which looks like a very good jump. Can you take us through the other internals, what the operating performance has been, what are your profit figure for this quarter?A: I am not sure why you just have our topline because we have uploaded our financials on the stock exchange but nevertheless I will take you through our revenues, EBITDA margins and Profit after Tax (PAT) margins for the financial year.We have seen a 73 percent growth in our financials for the recently concluded year. We ended the year with a topline of Rs 2,710 crore which was 73 percent growth compared to Rs 1,566 crore in FY14. Our EBITDA has moved up 160 percent compared to FY14. It has moved up from Rs 176 crore in FY14 to Rs 457 crore in FY15. The EBITDA margins have moved up over this period from about 11.3 percent to about 17 percent, which are not only the highest in India but probably amongst the highest globally.Our PAT margins during this period have moved up from Rs 132 crore to Rs 296 crore which is 124 percent increase and PAT margins from a margin perspective have moved up from roughly 8.4 percent in FY14 to about 11 percent in FY15.Anuj: I am just going through your investor presentation and you have said that you have added 124 megawatt in Q4 of FY15 and your total order book is now 1,178 megawatt which will be executed over 12 to 15 months, what about the next financial year, how is that looking up in terms of order inflows, what kind of growth can we expect?A: As you may feel our order book typically of this sector was the last quarter’s more focussed on execution. There is limited order inflow which happened in Q4. You start building your order book over Q1 and Q2. What you have seen is that our present order book of 1,178 mw was as on March 31, 2015. As we sit today our order book is already in excess of 1,400 mw, number one.Number two, we are in active discussions across the board with IPPs, utilities, a lot of tenders coming out in the market and we expect a fairly robust inflow of orders over the next two quarters which would kind of see us through for the next two odd years at least.
Sonia: You told us that your EBITDA for the year, for FY15 has come in at Rs 457 crore. So, that is a substantial jump compared to what you have seen last year. for FY16 what kind of margins and EBITDA growth is a realistic assumption?A: We have grown at a fairly healthy pace over the past five years. I think we have grown at a very healthy pace between the time of the IPO and now but we can’t give you very forward looking statements, we wouldn’t like to give any guidance out but we should see substantial growth over the present base at this point.Anuj: Let me put it this way because now the base effect will catch-up. Obviously the CAGR of 150 percent may not be maintained in terms of revenue from operations but what would be a decent ballpark number in terms of FY16 growth?A: I can’t give you any numbers but again I think we should see extremely robust growth. Fact of the matter is we have done close to about 580 megawatts in this financial year and I would leave it to your imagination. We are doubling our capacity, we are taking our existing capacities from 800 megawatts to 1500 megawatts. We have an order book in excess of 1200 megawatts as of March 31. So, as Inox we expect to see a huge growth in the next financial year as well.Sonia: How is the work progressing at your Madhya Pradesh plant?A: Construction is in full swing at that plant. We are happy to tell you that it comprises of three facilities that complex. We are building a Nacelles facility for about 800 megawatts of Nacelles. We are building a blade plant for about 800 megawatts of blade and we are building a tower complex for about 600 megawatts of towers. The blade complex is in final stages of completion. We expect to start trial production and commissioning from June and expect to ramp it up gradually over the course of the year to take it to full capacity. The construction for the tower plant commenced in this month and we expect that to go live in H2 of this financial year. That will be followed by the Nacelles plant where at this point in time we don’t have a constraint in terms of manufacturing capacity.
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