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

Hitachi Energy in India announces results for the October to December 2023 quarter.

(INR crore)	Oct to Dec 2023	July to Sept 2023	Oct to Dec 2022	9M 2023-24(Apr 23 to Dec 23)	9M 2022-23(Apr 22 to Dec 22)
Orders	1,235.0	1747.1	1,222.1	4,129.6	5,555.2
Revenue	1,276.4	1228.2 ​	1,041.0	3,547.6	3,147.4
PBT	33.8	32.4 ​	13.4	69.5	65.7
PBT%	2.6%	2.6%	1.3%	2.0%	2.1%
PAT	23.0	24.7 ​	4.6	50.1	43.1
PAT %	1.8%	2.0%	0.4%	1.4%	1.4%
Op EBITA**	58.4	42.7	29.9	110.5	97.2
Op EBITA %	4.6%	3.5%	2.9%	3.1%	3.1%
Op EBITDA	81.0	65.0	49.9	177.6	155.8
Op EBITDA%	6.3%	5.3%	4.8%	5.0%	5.0%

**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.