Wind turbine maker Inox Wind today reported 80 per cent decline in consolidated net profit at Rs 11.82 crore for the quarter ended June 30, 2016.
The firm had clocked a net profit of Rs 60.42 crore in the year-ago period, it said in a BSE filing.
Total consolidated income of the company fell by 32 per cent to Rs 435 crore in April-June quarter this fiscal from Rs 644 crore during the same quarter in 2015-16.
Its total expenses were lower at Rs 399 crore against Rs 557 crore during the period under review.
Inox Wind Executive Director Devansh Jain said over the June quarter, the company has undertaken several steps that augur well for its long term performance.
"Higher production of Blade Sets and Towers compared to Nacelles and Hubs during the quarter has cleared the inventory backlog and will significantly improve the working capital cycle of the company," he added.
The component manufacturing capacity of Inox Wind is also now fully aligned with doubling of the blade manufacturing capacity to 1,600 MW and enhanced tower manufacturing capacity, Jain said.
"We also see significant traction in order inflow during the coming quarter with multiple order wins to be announced. Inox Wind remains on track to meet its annual performance targets," he added.
Inox Wind said 99 blade sets, 74 towers and 20 nacelles and hubs were produced during the June quarter.
As of Q1 2016-17, significant inventory backlog has been cleared with higher production of blade sets and towers. As of date, the entire inventory backlog has been cleared, it added.
Going ahead, the firm said: "Commissioning activity to pick up significantly in the current year with state policies announced."
The company said it is focused on increasing land bank further in South India. Multiple sites have been acquired at very competitive acquisition cost in Andhra Pradesh. Inox has entered Karnataka.
Sufficient land bank available with the firm as of June 2016 for installation of an aggregate capacity of more than 4,500 MW, it added.
The company has a robust order book position of 1,240 MW as of June 2016 with very strong order inflow visibility going forward.
On the competition between wind and solar power, Inox Wind said that wind tariffs are lower than solar tariffs in most states.
Besides, aggressive bids and unproven technology are raising concerns regarding viability of solar projects, it added.
"Lenders have concerns in financing solar projects with tariffs as low as some of the bids seen, which seem to suggest some of the projects may not be commissioned. Proven technology and superior returns make wind energy the preferred sector for lenders," it added.
Continuing its expansion in southern states, Inox Wind
Infrastructure Services Ltd -- a subsidiary of Inox Wind -- has acquired RBRK Investments Ltd with effect from September 1, 2016.
"In view of the above, RBRK Investments Ltd has become a step down Subsidiary of Inox Wind Ltd," it said in a regulatory filing.
