Inox Wind shares have recently experienced a significant decline, dropping by 18% over the past two days.

This sharp fall has raised concerns among investors about the underlying reasons behind this downturn.

One of the key issues impacting Inox Wind's stock is the company's financial performance.

Despite showing strong growth in revenue and profit in recent quarters, certain financial metrics have been a cause for concern.

For instance, while the company nearly doubled its revenue and saw an 80% increase in operating profit, its operating profit margins have softened from 15% to 13.6%.

This decline in margins, coupled with a rise in receivables to 188 days, indicates potential cash flow issues which might be making investors wary.

Additionally, Inox Wind has been dealing with increased debt levels.

Although it raised significant funds through the primary market, the total debt of the company has increased by 25% since March, contributing to higher interest costs, which surged by 67% in the first half of the fiscal year.

Another factor is the adverse currency movement affecting the company's imports of raw materials, which has also impacted profit margins.

However, the company expects improvements in margins due to better execution and a focus on high-margin products.

On the brighter side, Inox Wind has announced a significant order win for the supply of 210 MW of Wind Turbine Generators (WTGs) to Hero Future Energies, along with the issuance of bonus shares in the ratio of 3:1 to reward shareholders, demonstrating its ongoing business growth and shareholder-friendly policies.

This order, along with a robust order book, suggests a positive long-term outlook despite the current stock volatility.

Overall, while Inox Wind faces challenges related to margins, receivables, and debt, its strong revenue growth, significant order wins, and shareholder rewards highlight the company's potential for recovery and long-term success.