Join our community of smart investors

Greenko has wind behind it

A significant leap in operating capacity fuels profit growth at Greenko
March 31, 2015

A 46.5 per cent jump in operational capacity to 715MW helped push operating profits up three-quarters to $64m (£43m) as Indian clean energy provider Greenko (GKO) outperformed the entire previous financial year in nine months of solid trading. Prime minister Modi's preference for hydro and wind power, meanwhile, also spurred a 41 per cent increase in sales to $100m.

IC TIP: Buy at 103p

Further growth is on the agenda, too, as the group hones in on its 2015 target of 1,000MW. Boss Anil Chalamalasetty revealed that reduced borrowing costs and improved debt repayment should provide free cash flow to fuel future growth prospects. These include 362MW of wind and 188MW of hydro projects currently under construction and about 1,350MW of new projects in the active development stage.

Analysts at Arden Partners expect adjusted EPS to double this year to 11.6¢, before rising to 16.5¢ in 2016.