Inox Green Energy Services Limited Q2 FY24 Earnings Conference Call Summary
Financial Performance
• Revenue increased to INR 66.8 crores.
• Profit after tax of INR 5.7 crores, compared to a loss in the previous year.
Operational Goals
• Aims to double O&M portfolio from 3.2 GW to 6 GW by FY26.
• Recent contract win for O&M services worth INR 40 crores.
• Strategic divestment plan to become net debt-free.
Market Outlook
• Anticipates significant growth in India's wind energy sector.
• Projects an additional 100 GW of capacity over the next decade.
Management Insights
• Commitment to operational excellence and digital transformation.
• Clarified revenue generation timeline for O&M contracts (no revenue in first two years, cash flow starts in year three).
• Comprehensive O&M contracts priced between INR 8-10 lakhs per megawatt.
Financial Concerns Addressed
• Current debtors at INR 116 crores, consistent with previous figures.
• Increase in inventory due to I-Fox acquisition.
• Expectation to be net debt-free by March 2024.
EBITDA and Profitability
• EBITDA from operations for H1 is approximately INR 62 crores, indicating a run rate of INR 125 crores.
• Stability in annuity business with over 50% EBITDA margins.
• Concerns about ROCE and ROE expected to improve as depreciation decreases.
Finance Costs
• Current finance costs significantly lower at INR 11 crores compared to INR 30 crores last year.
• Borrowing of INR 200 crores at 10% expected to yield INR 20 crores in annual finance costs.
• Nani Virani project to be classified as a discontinued asset, reducing future finance costs.
Conclusion
• The call concluded with a note of thanks from the moderator, emphasizing the company's strategic direction and financial health.

Inox Green Energy Services Limited Conference Call Summary
Conference Call Overview
• Date: February 10, 2023
• Purpose: Discuss unaudited financial results for Q3 and nine months ending December 31, 2022
• Hosted by: Systematix Institutional Equities
• Key Participants:
• Devansh Jain (Executive Director)
• S.K. Mathu (CEO)
• Compliance: Event communicated to BSE and NSE, recorded for participants
Company Developments
• IPO Compliance: Delay in call due to IPO preparations
• Market Capitalization: Approximately $5 billion
• Government Policy: New auction policy for 8 GW of wind projects annually (2023-2030)
• Growth: Portfolio expanded from 90 MW to over 3,050 MW in ten years (CAGR > 40%)
• Business Model: Transitioning to an asset-light model; acquisition of I-Fox Windtechnik for operational enhancement
Financial Highlights
• IPO Funds: ₹740 crores raised, primarily for debt reduction
• Debt Strategy: Aiming for net debt-free status by selling Nani Virani SPV
• Credit Rating: Upgraded by CRISIL from BBB to BBB+ with a positive outlook
• Quarterly Performance:
• Revenue: Increased to ₹71 crores (from ₹61 crores)
• EBITDA: ₹18.26 crores (48% margin)
• One-time income: ₹20 crores from legacy issue resolution
Q&A Session Insights
• Portfolio Size: Confirmed at 3,034 MW post-I-Fox acquisition
• Other Income: Increase due to reversal of losses from Wind Two associate
• Debt Status: Net debt around ₹265 crores, expected to be eliminated post-Nani Virani sale
• I-Fox Portfolio: 230 MW managed with high contract renewal rate (98%)
• Financial Disclosures: Clarifications on debt, depreciation, and acquisition pricing
Future Outlook
• Growth Projections: No specific forward-looking guidance provided; focus on organic and inorganic growth
• Capital Expenditures: Zero Capex expected for FY2024, leading to free cash flow equating to EBITDA
• Corporate Guarantees: No guarantees provided for group companies
Conclusion
• Positive remarks on future prospects and operational stability were shared, with an emphasis on strategic acquisitions and financial health.