Inox Wind on Friday reported a consolidated net loss of Rs 55 crore in the quarter ended March 2018 as against profit of Rs 127 crore in the corresponding period of last year, mainly on account of a dip in revenues. During the quarter, the company's consolidated total income decreased to Rs 205.64 crore from Rs 1,033.55 crore a year ago.

The company suffered a loss of Rs 185 crore in FY18 as against a net profit of Rs 303 crore in the last fiscal. “FY18 was a year of transformation for the Indian wind sector on back of the change to an auction regime vs. FIT (Feed-in-tariff) regime earlier. This led to a huge disruption in the industry during the year, which is reflected in an annual wind capacity addition of 1.7 GW in FY18 vs 5.5 GW added in FY17,” the company said. It added that the industry faced a variety of issues, including high inventory and stranded assets.

Silver lining

At the same time, according to the company, there was strong tendering activity at the end of the 2018 fiscal. During the last quarter, Inox Wind won orders of 350 MW from SECI-3 (200MW), SECI-4 (100MW) and Maharashtra state auction (50MW), which has taken the company’s total order book to 950 MW.

Around 7.5GW of auctions were conducted during the last fiscal by SECI and states, while the auctioning target announced by the government for the current and the next fiscal is 10 GW each.

“The government gave a strong auction pipeline of 10GW in FY19 & FY20 each, which is comforting for the order inflow from a 12-24 months perspective for the sector, in order to reach the 2022 target of 60GW wind installations,” the company said.

Inox Wind has recommenced operations across its manufacturing facilities in Gujarat, Himachal Pradesh and Madhya Pradesh in April, after a near four-quarter gap for the execution of SECI orders in FY19, the company added.

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