Inox Green Energy Share Price Declines As Q4 Profit Slips Over 70%

Inox Green Energy Services Ltd.'s share price decline by 3.25% following the release of its fourth-quarter financial results, which revealed a significant drop in profit.

Net profit dipped 73.9% to Rs 5.6 crore during the fourth quarter from Rs 21.3 crore.

The company's earnings before interest, taxes, depreciation, and amortisation plummeted by 92.9% to Rs 81 lakh from Rs 11.5 crore. This, even as revenue rose 30.4% to Rs 68.4 crore, compared to Rs 52.4 crore in the same period last year.

The Ebitda margin also saw a sharp contraction, standing at 1.2% from 21.8%.

The decline in Ebitda was attributed to increased expenses in engineering, procurement, and construction, operations and maintenance, common infrastructure facilities, and employee benefits. Additionally, higher tax expenses contributed to the fall in profit after tax.

The scrip fell as much as 3.25% to Rs 177.55 apiece. It pared losses to trade 2.12% lower at Rs 179.63 apiece, as of 10:10 a.m. This compares to a 0.68% decline in the NSE Nifty 50.

It has risen 30.64% in the last 12 months. Total traded volume so far in the day stood at 3 times its 30-day average. The relative strength index was at 69.

The one analyst tracking the company maintains a 'buy' rating, according to Bloomberg data.