INOX India Shares Price gains 13% After Attaining IATF 16949 Certification

Market Performance

Shares of INOX India witnessed a notable increase of approximately 13 per cent during early trading on February 27. This surge follows the recent announcement regarding an international certification for cryogenic fuel tanks, which was made public on February 24. At 10:40 AM, the company's stock traded at Rs 1,022.05, reflecting a 12.95 per cent gain.

Certification Announcement

INOX India has achieved a significant milestone by becoming the first cryogenic equipment manufacturer in the country to receive the IATF 16949 certification. This certification, issued by Bureau Veritas Certification, is granted after a thorough audit of the company's Kalol facility in Panchmahal, Gujarat. Suppliers in the automotive industry must ensure adherence to high-quality management standards in the design and manufacturing of insulated cryogenic fuel tanks.

Financial Performance

As per the company's Q3FY25 financial results:

• Revenue: Increased by 14.8 per cent year-on-year (YoY) to Rs 334 crore.
• EBITDA: Recorded a 3% YoY growth, reaching Rs 69 crore.
• EBITDA Margins: Declined by 220 basis points to 20.7 per cent.
• Net Profit: Rose by 20 per cent YoY to Rs 58 crore, primarily driven by a 78 per cent rise in other income.

Business Developments

The company has secured several large-scale projects and is currently undergoing capacity expansion. While this has impacted revenue in the short term, projections indicate a stronger performance in Q4FY25 and FY26. INOX India anticipates an 18-20 per cent YoY growth in fourth-quarter revenue, potentially surpassing Rs 400 crore.

As of December 31, 2024, the company's order backlog stood at Rs 1,341 crore, with an order inflow of Rs 493 crore recorded in Q3FY25.

Global Presence

INOX India has established a robust international footprint, with approximately 55 per cent of its export revenue. The company operates in more than 100 countries, reinforcing its position in the global market for cryogenic equipment.

Summary

INOX India's achievement of the IATF 16949 certification marks a significant step in ensuring cryogenic fuel tank manufacturing quality standards. The company's recent financial performance indicates steady revenue growth despite short-term impacts due to expansion. With a strong order backlog and increasing global presence, INOX India continues to strengthen its industry position.