Devansh Jain earnings call questions

Inox Wind Limited CC-Dec23.pdf ·

Thank you so much for your compliments, but I think it goes out to the entire team for all t he hard work that has gone over the last several quarters, to be able to enjoy th is for where the sector is now placed. Look, I think we guided for certain numbers which we’re targeting 500 MW or 600 MW. While I would not want to put out an official number at this point in time. All that we can say is that, we will be looking at significantly increasing execution from that perspective. The company is gearing up for a GW of annual execution. As you can see, our order book is now excluding LOIs north of 2,500 MW. Clearly, without specifying the exact details at this point in time, I think we would be looking at a very significant ramp up in operations and a significant jump to what the market expects.

Look, first and foremost, I think we've announced a license agreement for the 4.X platform. Now, that's not something that just comes in. If you recall, the 3 MW has taken two to three years to come to fruition. You set up a turbine, you undergo type certification, and then you ramp up supplies and so on and so forth. So, what we've tried to do is we looked at the four building blocks which are required in this business to succeed. One, we needed a strong balan ce sheet, which we've now positioned ourselves for. Second, we needed a large project site inventory. We are probably the largest project site developers across wind turbine manufacturers today in the country, and we have a very-very strong project development pipeline and plug-and-play infrastructure available. INOX Wind Limited - 7 - 09.02.2024 The third piece which was required was large orders to obviously increase execution , get revenue and a diversified order book. I think we are very happy to share. We have a very diversified, of course, we won one very large order over two to three to four years, but we expect significantly large orders as we keep moving forward. What the technology, and the fourth piece is the technology piece. So, it's not that we're looking at India only from a on e-year, two -year, three-year perspective. We looked at where is India heading in the next eight to 10 years. And what we saw is , we must have another larger product in our arsenal from the perspective that there are certain sites where larger rotor diamete r blades can go, and to that extent. I mean, to the extent that we will keep using our 3.3 MW, which is our workhorse, which I believe is ideally suited for the Indian markets. But a 4.X platform is also well suited for certain parts of the Indian market, and we did not want to lose out on those opportunities. So , I think this is something which will play out over the next two, three years. In the meantime, 3 MW is the workhorse. 2 MW, as you know, is a limited play now, given that it's fairly outda ted in our scheme of things. But yes, there are certain places where we use the 2 MW as well. But going forward, 3 MW is going to be the workhorse for several years.