Any current/future new fundraising through debt or equity?

As of FY24, Inox India Limited has almost nil total debt, providing adequate room to raise debt in the future. The company ended FY24 with a comfortable net cash position of ₹253 crore after incurring capex of over ₹100 crore. The planned capex for the next year is around ₹100 crore, which will be funded through internal accruals. There is no mention of any current or upcoming fundraising through equity in the call. Given the strong balance sheet and internal accrual funding, no immediate plans for debt or equity fundraising were indicated.

Any current/future capex/capital investment/strategic investment?

Capex plan for FY25 is around Rs. 100 crores. Major investment of about Rs. 80 crores is underway to expand additional sheds at the new Savli plant for stainless-steel container manufacturing. Remaining Rs. 20-25 crores is allocated for maintenance and other plant-related CAPEX. All these capital expenditures will be funded through internal accruals. The Savli plant has recently started production, expected to contribute Rs. 100 crores in revenue this year. The company is also augmenting resources in design engineering and project management for large engineering system projects in Industrial

Future growth expectations in sales/revenue/volumes?

The company aims to maintain mid-to-high-teens percentage revenue growth in FY25 and beyond. New products like disposable cylinders and stainless-steel containers (Savli plant) have short lead times, enabling quick ramp-up. صادرات (exports) are expected to grow fast due to expanded sales presence in Europe, Latin America, and Brazil. LNG and Cryo Scientific divisions are growing strongly, contributing to overall growth. Hydrogen segment is viewed as a future growth area, though the timeline is gradual (3-5 years for significant scale). Order backlog stood robust at ₹1,087 crore with diversifie

Future growth expectations in earnings/operating earnings/profits/EPS?

INOX India aims to sustain a revenue growth run rate of approximately 21% to 24% annually, similar to the past three years. EBITDA margins are expected to remain stable in the range of 21% to 25%, supported by high technology product offerings. PAT margin improved to 16.9% in FY24, with expectations for continued strong profit growth driven by expanding export markets and new product lines. The company foresees growth from new initiatives in hydrogen, LNG, and Cryo Scientific divisions, with significant potential in export markets. Savli plant is expected to contribute around Rs. 100 crore in

Current/ Expected Orderbook/ Pending Orders?

Order backlog as of March 31, 2024, stands at Rs. 1,087 crore. Order composition: 55% Industrial Gas, 20% LNG, and 25% Cryo Scientific division. Export orders comprise 52% of the total order backlog. Order inflow for FY24 was Rs. 1,193 crore, a 14% YoY increase. The company expects continued growth in LNG and Cryo Scientific orders, with strong opportunities in hydrogen and new product lines. Lead times for new stainless steel containers and disposable cylinders are short (4-6 weeks), enabling potentially higher sales within the fiscal year. The company anticipates the order book to grow furth

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Inox India LtdQ1 FY24Industrial Products

Inox India Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹1,918P/E: 52.3Market Cap: ₹13.2K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→The company aims to maintain mid-to-high-teens percentage revenue growth in FY25 and beyond.
→New products like disposable cylinders and stainless-steel containers (Savli plant) have short lead times, enabling quick ramp-up.
→صادرات (exports) are expected to grow fast due to expanded sales presence in Europe, Latin America, and Brazil.
→LNG and Cryo Scientific divisions are growing strongly, contributing to overall growth.
→Hydrogen segment is viewed as a future growth area, though the timeline is gradual (3-5 years for significant scale).
→Order backlog stood robust at ₹1,087 crore with diversified orders across Industrial Gas, LNG, and Cryo Scientific divisions.
→The company is optimistic about public sector investment in LNG and green hydrogen infrastructure, fueling demand.
→Strategic MoU with Adani for LNG fueling stations is expected to drive incremental revenues.
→Expected to generate approx. ₹100 crore revenue from the new Savli plant in FY25.

Margin guidance

Category 3

→INOX India aims to sustain a revenue growth run rate of approximately 21% to 24% annually, similar to the past three years.
→EBITDA margins are expected to remain stable in the range of 21% to 25%, supported by high technology product offerings.
→PAT margin improved to 16.9% in FY24, with expectations for continued strong profit growth driven by expanding export markets and new product lines.
→The company foresees growth from new initiatives in hydrogen, LNG, and Cryo Scientific divisions, with significant potential in export markets.
→Savli plant is expected to contribute around Rs. 100 crore in revenue in the coming year, supporting overall growth.
→Expansion in international sales networks (Germany, Switzerland, Poland, Netherlands, Brazil) is expected to accelerate export order growth.
→Growth drivers include industrial gas, LNG fueling stations, hydrogen fuel infrastructure, and new high-value projects taking 18-24 months to complete.

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Fundraise plans

→As of FY24, Inox India Limited has almost nil total debt, providing adequate room to raise debt in the future.
→The company ended FY24 with a comfortable net cash position of ₹253 crore after incurring capex of over ₹100 crore.
→The planned capex for the next year is around ₹100 crore, which will be funded through internal accruals.
→There is no mention of any current or upcoming fundraising through equity in the call.
→Given the strong balance sheet and internal accrual funding, no immediate plans for debt or equity fundraising were indicated.

Order book

Yes

→Order backlog as of March 31, 2024, stands at Rs. 1,087 crore.
→Order composition: 55% Industrial Gas, 20% LNG, and 25% Cryo Scientific division.
→Export orders comprise 52% of the total order backlog.
→Order inflow for FY24 was Rs. 1,193 crore, a 14% YoY increase.
→The company expects continued growth in LNG and Cryo Scientific orders, with strong opportunities in hydrogen and new product lines.
→Lead times for new stainless steel containers and disposable cylinders are short (4-6 weeks), enabling potentially higher sales within the fiscal year.
→The company anticipates the order book to grow further, fueled by public sector investments and growing LNG demand.
→Despite a slight dip in LNG orders in Q4 FY24, large-scale projects are expected to complete in Q1 or Q2 FY25.

Capex plans

Yes

→Capex plan for FY25 is around Rs. 100 crores.
→Major investment of about Rs. 80 crores is underway to expand additional sheds at the new Savli plant for stainless-steel container manufacturing.
→Remaining Rs. 20-25 crores is allocated for maintenance and other plant-related CAPEX.
→All these capital expenditures will be funded through internal accruals.
→The Savli plant has recently started production, expected to contribute Rs. 100 crores in revenue this year.
→The company is also augmenting resources in design engineering and project management for large engineering system projects in Industrial Gas (IG) and LNG businesses.
→Strategic MoUs signed (e.g., with Adani Total Gas) to strengthen LNG and hydrogen infrastructure, indicating a focus on long-term growth in clean energy segments.

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