Press Release
Bangalore, India
23-01-2024
5 min read
Hitachi Energy India Limited announces Q3FY24 results: Order execution, navigating external supply chain risks drive revenue growth
QUARTER HIGHLIGHTS
- Strong order execution pushed revenue growth to 23% YoY
- 400% increase in PAT YoY - on low base
- Order backlog at INR 7,552.3 crore
Bengaluru, January 23rd, 2024 – Hitachi Energy in India announces results for the October to December 2023 quarter.
**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).
“Technologies and market innovations are playing a pivotal role in navigating the complexities of the evolving energy landscape. These have further expedited the pace of energy transition across sectors, helping us sustain our growth this quarter," said N Venu, Managing Director and CEO, Hitachi Energy India Ltd.
"Strong order execution and mitigation of some supply chain challenges have helped deliver revenue and bottom-line growth. We stay focused on growth opportunities and improving our overall operational efficiencies," he added.
Orders
In the quarter ending December 31, 2023, we received orders worth INR 1,235 crore, flat year on year, while declining QoQ due to an exceptional large order in Q2¹.
Datacenters and renewables significantly contributed to orders, while transmission and rail segments remained flat. Notable digitalization orders from energy intensive segments like steel, along with industry training orders demonstrated the urgency for rapid energy transition and electrification percolating across all segments. Service orders were up over 70 percent YoY led by utilities and industries.
Export orders were up more than 60 percent YoY during the quarter, driven by transformers and high-voltage products– reaffirming our ’make in India for India and the world’ approach. Orders for transformers came from Europe and African markets, while demand for power quality solutions were from South and Central America, Africa, US and Europe.
As of December 31, 2023, the order backlog stood at INR 7,552.3 crore, providing revenue visibility for the coming quarters.
Revenue
Solid order execution coupled with easing in supply chains resulted in YoY and QoQ revenue growth of 23 and 3.9 percent, respectively. Revenue stood at INR 1,276.4 crore in the quarter that ended December 31, 2023.
Profit
Mitigation of some external supply chain challenges supported YoY profit recovery in Q3FY24. Profit before tax stood at INR 33.8 crore, up 152 percent YoY. Profit after tax was at INR 23 crore, clocking a recovery of 400 percent YoY on a low base.
Sustainability 2030
In the period under review, the Company focused on further improving waste flow management as part of its ongoing environmental commitments. Implementation of multiple sustainability projects across locations continued in parallel.
Outlook
The Indian economy continues its growth momentum, and this also is expected to drive a proportionate increase in the country's energy usage. Hence, a strong, flexible energy ecosystem will be crucial in the country's journey towards becoming the third largest economy in the world in the years to come. In the current financial year, the market has already witnessed 18 power transmission projects, which provide promising opportunities. Furthermore, high-growth segments like rail, metro and other infrastructure projects are additional growth drivers.
- End –
1. Large transmission order of 600MVAr Fatehgarh-3 Statcom
About Hitachi Energy
Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We serve customers in the utility, industry and infrastructure sectors with innovative solutions and services across the value chain. Together with customers and partners, we pioneer technologies and enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. We are advancing the world's energy system to become more sustainable, flexible and secure whilst balancing social, environmental and economic value. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries. We integrate more than 150 GW of HVDC links into the power system, helping our customers enable more wind and solar. Headquartered in Switzerland, we employ more than 40,000 people in 90 countries and generate business volumes of over $10 billion USD.
In India, Hitachi Energy operates under the legal entity name Hitachi Energy India Limited and is listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) as POWERINDIA, Scrip code 543187.
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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 business structure 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 consolidated revenues for fiscal year 2022 (ended March 31, 2023) totaled 10,881.1 billion yen, with 696 consolidated subsidiaries and approximately 320,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.
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