Wind power solutions provider Inox Wind shares tanked over 19 per cent on Monday after the company’s consolidated net profit declined 36 per cent to Rs 127.54 crore in the quarter ended March 31 as compared to the consolidated net profit of Rs 201.12 crore in the corresponding quarter a year ago. At 12.20 pm, share price of the company was trading 16.49 per cent down at Rs 168.65. The share price opened at Rs 175 and touched a high and low of Rs 176 and Rs 162.50, respectively, in trade so far. Later, the share price ended the day 17.41 per cent down at Rs 166.80.
In a BSE filing on Friday, the company said its total income for the quarter was 1,033.55 crore as compared to Rs 1,858.03 crore in the year-ago period. Its consolidated net profit in 2016-17 was Rs 303.29 crore, down from Rs 461.17 crore a year earlier.
The company said that due to the effect of demonetisation in Q3, the second half of the financial year remained tough and PPA signing by states came to a halt on the back of the SECI auctions in Q4. The company has commissioned 422 MW of orders during the quarter (the highest ever, in any quarter) and 656 MW during the year.
Analysts found the results of Inox Wind below expectations on all the fronts. KRChoksey – Institutional Research said, “With Industry undergoing a change of model from FIT based market to auction based market, Inox order book lost its relevance. On other side orders did not get executed due to signing PPA by states. So results were extremely below than expectation.”
However, the company sees a recovery going forward as it expects revolutionary change on the back of the thrust of the government to make India a 60GW wind energy producer by 2022.
“FY17 was impacted by unforeseen circumstances of states stopping the signing of PPAs post SECI auctions. However, we remain confident of our prospects in the auction regime and expect significant growth in the coming years,” Devansh Jain, Executive Director of the company said in the statement.