INOX India Q4 results: Profits and revenue see strong gains

INOX India, as a part of the Inox Group, is acknowledged globally as a leading provider of custom-made cryogenic equipment. The company recently announced its financial results for the fourth quarter, reporting a 44% year-on-year gain in net profit to ₹44 crore. Revenue also climbed by 17%, reflecting a strong performance across its operations.

This blog aims to provide an analysis of INOX India’s Q4 results, focusing on the key financial metrics and business developments during the period. 

About Inox India

INOX India, founded in 1976, concentrates in cryogenic equipment design, manufacturing, and installation. It is one of the top-tier providers of customised cryogenic equipment globally. The company operates on a global scale, with a client base covering over 100 countries.

INOX India has thorough production facilities across four major locations in India. Besides, it manages part manufacturing and service operations from Brazil and a stock and sale facility in the Netherlands.

INOX India is part of the Inox Group but does not own the ‘Inox’ trademark. The name ‘Inox’ is used under a licensing agreement with the group’s promoters. This arrangement involves an annual royalty payment, allowing INOX India to leverage the established brand identity of the Inox Group while conducting its operations. 

The company’s product offerings are divided into key areas: Industrial gases, liquefied natural gas (LNG), and cryo-scientific applications. 

As of March 2024, Industrial gases account for 63% of its business, involving the storage and transport of substances like oxygen, nitrogen, and hydrogen. LNG contributes 28% to the business. The division focuses on equipment for storage, distribution, and transportation of LNG, supporting cleaner energy use. The cryo-scientific sector that accounts for 7% provides advanced solutions and turnkey services for scientific and industrial research involving cryogenic technology.

INOX India is a spearhead promoting clean energy, especially in LNG and hydrogen solutions, echoing its commitment to sustainable practices. The company holds a strong market position due to its expertise in cryogenic systems, sustained by a significant shareholding pattern where promoters hold 75% of the equity.

Also read: Here is everything you need to know about INOX India’s IPO!

INOX India Q4 results

INOX India released their Q4 FY24 financial results. The firm filed a 44% year-on-year (YoY) increase in net profit to ₹44 crore. This account corresponds to ₹30.6 crore in the same quarter the previous year. Revenue for the quarter also caught an uplift, climbing 17% to ₹276 crore from ₹235 crore.

Despite these annual gains, the quarterly figures tell a different story compared to the previous quarter. The revenue sank by 4% from ₹290 crore, and net profit declined by 9% from ₹48.5 crore. Nevertheless, the company’s earnings before interest, taxes, depreciation, and amortisation or EBITDA ascended by 38% YoY to ₹64 crore.

On the other hand INOX India also reported its highest ever order booking. The total bookings for the year reached ₹1,193 crore, marking a 14% increase year-on-year. Specifically for Q4, the order inflow was ₹309 crore, which represents an impressive 84% growth compared to the same period last year.

Siddharth Jain, the company’s promoter & non-executive director, voiced optimism about the company’s path and its role in promoting clean energy solutions. He acknowledged the enthusiastic investor response at recent listings and emphasised the company’s ongoing commitment to sustainability and innovation in its sector.

Earnings for the fiscal year 2024

In its financial measures, INOX India registered strong growth for the 2024 financial year. Revenue for the company was ₹1162 crore, up 18% from the previous year. This represents the greatest revenue amount the corporation has ever disclosed.

EBITDA grew by 25% to ₹282 crore, echoing improved operational efficiency and cost management. Net profit (PAT) for the year grew by 27%, totalling ₹196 crores. These outcomes underscore the company’s strong performance across its core business segments.

During FY24, INOX India achieved ₹641 crores in export sales and reported the highest-ever order inflow of ₹1193 crore. The company also noted a record backlog of ₹1087 crore, positioning it well for sustained growth in upcoming fiscal periods. 

This backlog includes 55% of orders from the industrial gas division, 20% from LNG, and 25% from the cryo scientific division. Notably, exports comprised 52% of the total order backlog, underlining INOX India’s strong international presence and demand for its cryogenic solutions.

This year also marked the inauguration of a new plant at Savli, Vadodara, and the company’s listing on Indian Stock Exchanges in December 2023, significant milestones that enhance its production capabilities and market presence.

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Inox India share price performance

Over the past year, INOX India’s share price has shown substantial growth. As of May 15, 2024, the share price stood at ₹1,314.90, representing an increase of 39.89% compared to the previous year. This rise reflects investor confidence and positive market reception to the company’s financial performance and strategic initiatives.

Examining a longer timeframe, the five-year trend also displays robust growth. Inox India shares have increased by 44.39% overall. This sustained upward trend underscores the company’s strong market position and ongoing commitment to growth and innovation within the cryogenic equipment sector.

Also read: Exploring Gujarat Gas Ltd. (GGL)

Bottomline

INOX India’s performance in the fourth quarter and over the fiscal year 2024 illustrates a company that is managing both short-term challenges and long-term opportunities with a clear strategic direction. Despite some quarterly fluctuations, the overall annual growth, strong order bookings, and expansion in core business areas reflect a resilient operational framework.