Crisil upgrades Inox Wind Ltd's rating

The company's short-term bank facilities were upgraded to Crisil A1 from Crisil A2+.

A "Crisil A" rating implies that such instruments carry low credit risk and have an adequate degree of safety regarding timely servicing of financial obligations and

A "Crisil A1" rating means securities have a very strong degree of safety regarding timely payment of financial obligations and carry the lowest credit risk.

In a press statement, IWL said the rating upgrade reflects the improvement in IWL’s business risk profile on account of substantial improvement in operating performance. "Further, it notes that the company’s deleveraging efforts through equity raise significantly improves its financial risk profile."

Inox Wind promoters last month sold a nearly 5% stake in the company to raise Rs 900 crore, which was ploughed back into the company. With this, became net debt-free, excluding promoter debt.

The company also said that it has a net order book of 2.7 GW as of May 31, 2024, which provides large revenue growth visibility and sustained profitability for the company.

"We have successfully raised funds to strengthen our balance sheet and also ramped up our operations. Further, with the transition to our state-of-the-art 3MW WTGs, we have embarked on a superlative growth journey with strong profitability," , Inox Wind's CEO said.

Shares of Inox Wind were trading at Rs 151, down 0.10% on BSE, Wednesday morning. The stock is up over 300% in the last 12 months.