Press Release
Bengaluru, India
29-10-2024
3 min read
Hitachi Energy India Limited announces Q2FY25 results: Orders grow, margin strengthens
HIGHLIGHTS
• Orders, revenue post double-digit YoY growth
• PAT doubles YoY on a low base
• Op EBITDA at INR 126.3cr, margin at 8.1%
• Highest ever order backlog of INR 8,910 crore
Bengaluru, October 29, 2024 – Hitachi Energy India Ltd. announces results for July to September 2024.
**The company evaluates the profitability based on Operational EBITA. Operational EBITA represents income from operations excluding (i) amortization expense on intangibles, (ii) restructuring and restructuring-related expenses, (iii) non-operational pension cost, (iv) gains and losses from the sale of businesses, acquisition-related expenses, and certain non-operational items, as well as (v) foreign exchange/commodity timing differences in income from operations consisting of (a) unrealized gains and losses on derivatives (foreign exchange, commodities, embedded derivatives), (b) unrealized foreign exchange movements on receivables/payables (and related assets/liabilities).
"The growing urgency to accelerate energy transition in India and across the globe has significantly boosted investment in the energy sector," said N Venu, MD & CEO of Hitachi Energy India Ltd. "This surge has created favorable conditions for our overall business, leading to increased order intake, revenue, and profitability. Our focused approach toward strong execution of orders with better margins and operational efficiency contributed to favorable performance in Q2FY25.”
Orders
In the quarter ended September 30, 2024, orders totaled INR 1,952 crore, up 11.7% YoY. Renewables led the charge – from studies across utilities, power quality and substation projects. Expansion, upgrades and improved efficiency also resulted in orders from existing power plants. Key large orders coming from transformers and power quality segment spreading across industry, transportation, utilities and data centers.
The service portfolio witnessed substantial YoY growth of 65%. Orders included comprehensive overhauling of the generator circuit breaker for one of the largest dam projects in the country, and extension opportunities from utility and industry. Exports accounted for ~22% of total orders booked in Q2FY25 with a significant share from high-voltage products and grid integration orders from European and African markets.
As of September 30, 2024, the order backlog stood at a record high of INR 8,910 crore, providing revenue visibility for the coming several quarters.
Revenue
Revenue for the July-September 2024 quarter were INR 1,553.8 crore. Showcasing a strong revenue growth of 26.5 % YoY on the back of favorable mix and good order execution during quarter.
Profit
Profit before tax for the quarter was INR 70.6 crore, up by 118% YoY, and profit after tax was INR 52.3 crore, up by 111.4% YoY. Operational EBITDA for the second quarter was INR 126.3 crore, resulting in a margin of 8.1%, reiterating our continuous efforts toward improving margins and enhancing overall operational efficiency.
Outlook
India's ambitious plan to increase power transmission capacity by 35% by 2032 necessitates a robust energy ecosystem. This expansion is crucial to support the country's aim toward providing sustainable and equitable power distribution to the entire population. To drive social and economic development and contribute to the nation's bigger goal of becoming a $5 trillion economy goal. The growing demand will create significant investment opportunities in the energy sector, particularly in areas such as renewables, HVDC, data centers, electric transportation. etc
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About Hitachi Energy
Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We are advancing the world’s energy system to be more sustainable, flexible and secure and we collaborate with customers and partners to enable a sustainable energy future – for today’s generations and those to come. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries, serving customers in utility, industry, transportation, data centers and infrastructure sectors. With innovative technologies and services including the integration of more than 150 gigawatts of HVDC links into the power system, we help make the energy value chain more efficient, making electricity more accessible to all. Together with stakeholders across sectors and geographies, we enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. Headquartered in Switzerland, we employ around 45,000 people in 90 countries and generate business volumes of around $13 billion USD.
https://www.hitachienergy.com
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About Hitachi, Ltd.
Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.
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