Who will dominate the Wind energy sector?
Who will dominate the Wind energy sector?
Suzlon Energy and Inox Wind, two major players in India’s wind energy sector, reported impressive Q2 results. Inox Wind’s net sales nearly doubled, converting losses to a Rs 90 crore profit, while Suzlon’s net profit surged to Rs 201 crore, underscoring both companies strong growth and market positioning.
Q2 Highlights
Both Suzlon Energy and Inox Wind have posted stellar quarterly results. Notably, Inox Wind’s net sales surged by 97.56% year-over-year to Rs 732.24 crore. Subsequently, the company transformed its previous year’s loss into a profit of Rs 90 crore. Meanwhile, Suzlon Energy demonstrated impressive growth by doubling its net profit to Rs 201 crore. Furthermore, Suzlon’s revenue climbed 48% to reach Rs 2,093 crore, showcasing robust market momentum.
Order Books and Manufacturing Capabilities
The competition between these wind energy giants intensifies in their order books. Consequently, Inox Wind secured orders worth 1.2 GW, building a substantial backlog of 3.3 GW. However, Suzlon maintains its leadership with an all-time high order book of 5.1 GW. Additionally, Suzlon operates as India’s largest domestic manufacturer with a 3,600 MW capacity. In contrast, Inox Wind currently manages 800 MW capacity but plans to expand to 1,600 MW. Moreover, Inox Wind’s manufacturing footprint spans across Gujarat, Himachal Pradesh, and Madhya Pradesh.
Executive Insights
- “The strong Q2 performance indicates massive growth trajectory for Inox Wind.” – Devansh Jain, Executive Director, INOXGFL Group
- “Our core business now stands on solid foundation to capitalsze on market momentum.” – Girish Tanti, Vice Chairman, Suzlon Group
Also read..
Financial Metrics and Future Outlook
The financial landscape reveals interesting contrasts between the two companies. Initially, Inox Wind’s operating profit margin reached 18.60% in 2024, surpassing Suzlon’s 16.40%. Nevertheless, Suzlon achieved a remarkable turnaround with a profit of Rs 660 crores in 2024. As a result, investors closely monitor both companies valuation metrics. Presently, Inox Wind trades at a P/E ratio of 381.99, while Suzlon maintains a lower ratio of 106.18. Therefore, analysts remain divided on their recommendations.
Recent developments indicate promising trajectories for both companies. For instance, Inox Wind’s CEO, Kailash Tarachandani, announced plans for larger blades and new product commercialization. Similarly, Suzlon’s Vice Chairman, Girish Tanti, emphasized their strengthened leadership team and enhanced manufacturing capabilities. Additionally, both companies serve diverse customer segments, including public sector companies and independent power producers.
Market response to these developments varies. Currently, Inox Wind’s stock trades at Rs 208, despite a recent 3% decline. On the other hand, Suzlon’s shares is 5% lower than previous close at Rs 67. In essence, both companies though volatile have strong potential in India’s growing renewable energy sector.
Looking ahead, Inox Wind aims to achieve its best-ever profitability in FY25. Meanwhile, Suzlon partners with a leading global management consulting firm to explore new opportunities. Ultimately, these strategic moves position both companies to capitalize on India’s expanding wind energy market.
The competition between these wind energy leaders drives innovation and growth. Indeed, their success contributes significantly to India’s renewable energy goals. As the sector evolves, both companies appear well-equipped to meet increasing demand and technological challenges.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
