This Smallcap company, which offers solutions through the value chain of engineering, manufacturing, design, and installation of systems and equipment systems for conditions for cryogenic went up 2% in the day’s trade after receiving the order to supply LNG tanks from Island Power Producer (The Bahamas)
Price Movement
In Monday’s trading session, Inox India Limited stock was up by 2 percent in the day’s trade after receiving the order to supply LNG tanks from Island Power Producer (The Bahamas). The stock has delivered a return of around 27 percent in the past year outperforming the Nifty Index in the same period. The stock reiterated from the day’s high of Rs. 1210 and was trading at Rs. 1198 which is 1.17 percent from the previous closing price of Rs. 1184.20 per share.
What happened
Inox India received an order for a Turnkey Supply of 10 Vacuum-insulated storage tanks of 1500m3 capacity tanks. The company is involved in a re-gasification system for a power plant project.
They have Turnkey, Design, Engineering, and Supply of LNG receiving and Regassification Equipment. Phase 1 of 5 X 1500m3 LNG Tanks with the rest of the Regassification system supply is expected to be completed by February 2026. Phase 2 of the 5 X 1500m3 LNG Tanks supply is expected to be completed by June 2026.
With a total storage capacity of 15,000 m³ LNG, this project would feature the world’s largest shop-built double-walled vacuum-insulated cryogenic tanks. This order marks Inox India’s largest LNG business contract to date and establishes it as a third and largest Mini LNG terminal.
Management Commentary
Siddharth Jain, the promoter and non-executive director of Inox India said that they are proud to lead global LNG adoption for transport and power generation while partnering with Island Power Producers to build the largest Mini LNG Terminal and innovative cryogenic solutions in India as all components are made at Kandla.
Chris Satterfield, the director of Island Power Producers said in partnership with INOXCVA, it is developing a modular LNG terminal at Arawak Cay, Nassau, to provide low-carbon fuel for The Bahamas, enhancing energy sustainability and reducing carbon emissions.
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Financial Performance
Their Q2FY25 results show revenue from operations of Rs. 307 crore which increased by 19 percent year on year, from Rs. 258 crore in Q2FY24 and a 3.71 percent increase from Rs. 296 crore in Q1FY25. Their net profit increased by 6.52 percent year on year, from Rs. 46 crores in Q2FY24 to Rs. 49 crores in Q2FY25. Quarterly, the profits were down 7.54 percent from Rs. 53 crore.
The debt-to-equity ratio was 0.02 times declined from 0.06 times in FY23. The RoE in FY24 stood at 32.71 percent improved from 29.04 percent a year ago. However, the RoCE stood at 42.16 percent which has improved from 37.05 percent in FY23.
Revenue Segment
According to the company’s quarterly September 2024 report, they considered revenue from Cryogenic tanks. Industrial Gas contributes around 59 percent of revenue, 19 percent from LNG, 18 percent from Cryo Scientific, and the remaining 4 percent from others in Q2FY25.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 75 percent stake in Inox India, Foreign Institutional Investors (FII) holding around 5.84 percent, Domestic Institutional investors (DII) standing at 7.14 percent, and public holdings standing at 12.02 percent.
About the company
Inox India Limited is a leading supplier of cryogenic equipment, specializing in the design, engineering, manufacturing, and installation of systems for cryogenic applications. With over 30 years of experience, Inox operates in three main divisions namely Industrial Gases (storage and distribution systems), LNG (liquefied natural gas solutions), and Cryo Scientific (research technology applications).
They serve a global customer base with sectors like healthcare, energy, and aerospace. Inox India is the largest exporter of cryogenic tanks from India. As of Q2FY25, the company’s order book stood at Rs. 1,178 crores, with exports contributing around 50% of its revenue.
Written by Santhosh S
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