Inox Wind (IWL), which turned PAT-positive in Q3 FY24, aided by macro tailwinds and a strong order book, expects the sector to grow exponentially on the country’s focus on adding 100 gigawatt (GW) capacity over the next decade.

IWL, which offers end-to-end wind power solutions, is eyeing a share from around 18 GW of wind, as well as hybrid/ round the clock (RTC)/ firm and despatchable RE (FDRE) projects that have been floated.

“Supported by favourable macroeconomic conditions, including projected GDP growth over the next decade, demand for power remains substantial. With wind power offering cost advantages compared to national average purchase costs and its environmentally sustainable attributes, we are optimistic about our expansion prospects,” Devansh Jain, Executive Director of INOXGFL Group, told businessline.

IWL, part of the around $8-billion group, reported a revenue of ₹507 crore, a 113 per cent growth y-o-y in Q3 FY24, on a consolidated basis. It posted a profit after tax (PAT) of ₹1.8 crore, against a loss after tax of ₹288 crore.

Turnaround

The turnaround, Jain noted, is on the back of a combination of favourable market conditions and strategic initiatives taken by the company. The government’s commitment to add around 100 GW of wind capacity over the next decade has spurred a surge in order inflows from various sectors, including PSUs, independent power producers (IPPs) and commercial & industrial (C&I) customers, he added.

“Riding this wave, IWL secured orders totalling around 1,850 megawatts (MW) in recent months, alongside clinching India’s largest wind project order of 1,500 MW from CESC. These significant wins have propelled Inox Wind’s order book to an impressive around 2.6 GW, providing the company with robust revenue growth,” said Jain.

Alongside the order wins, the company also raised around ₹1,500 crore from marquee global equity investors, which helped to strengthen its balance sheet. On technological front, IWL made groundbreaking strides, which include the enlistment of its 3 MW turbine in the Renewable Energy Market Mechanism (RLMM) and a landmark agreement for the introduction of 4.X MW wind turbines in India, he said.

Better prospects

Elaborating on the sector’s prospects, Jain said the Indian wind sector is poised for exponential growth with immense opportunities on the horizon.

“A staggering around 18 GW of tenders for plain vanilla wind and hybrid/ RTC/ FDRE projects have been floated, promising significant development in the coming months. It is anticipated that total wind capacity awarded in FY24 could soar to 8-10 GW, including projects from hybrid/ RTC/ FDRE categories.,” he added.

These projects, once awarded, are slated to be developed over the subsequent 24 months, indicating a sustained period of growth and expansion in the sector. Projections also suggest that India’s wind capacity commissioning in FY24 could skyrocket to around 4 GW, representing a substantial increase from the levels witnessed in FY22 and FY23, Jain pointed out.

“Looking ahead, the momentum is expected to gather even more steam, with wind capacity commissioning potentially exceeding 5 GW annually from FY25 onwards,” he noted.

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