QUARTER HIGHLIGHTS
- Orders and revenue post double digit QoQ and YoY growth
- Exports and services contribution to orders stays stable
- Diversified revenue mix and operational excellence boosts PAT up ~124% YoY
- Op EBITDA% crosses double digits
FULL YEAR HIGHLIGHTS
- Orders up ~14% YoY over corresponding period (w/o HVDC)
- Order backlog of INR 7,229.5 crore at year-end
- 88% reduction in carbon emission under Sustainability 2030
- Board recommends dividend of INR 4 per share (200%)
Bengaluru, May 21, 2024 – Hitachi Energy India Ltd. announces results for January to March 2024, and for the financial period from April 2023 to March 2024.
“A strong revenue performance, helped by a favorable external environment helped to deliver double digit margins,” said N Venu, MD & CEO of Hitachi Energy India Ltd. “Sustained economic growth, and ongoing investments in the energy transition especially renewables, transmission infrastructure, data centers and electrification of transport are encouraging trends from a market perspective and we are well positioned to leverage these as we continue to grow the business.”
Orders
In the quarter ended March 31, 2024, orders totaled INR 1406.7 crore, up 13.9% QoQ and 11.5% YoY. Industries led the charge with electrification and digitalization of energy networks, across sectors from steel to silicon. Contribution from transmission projects followed, with orders from EPCs. Orders for hydro, wind and solar plant operations and integration continued the renewables momentum.
Service and export orders were up 43% YoY each, maintaining their strong contribution to the overall order book. Service orders included replacement equipment, Annual Maintenance Contracts (AMCs) and upgrades, as well as innovative solutions like RelCare and RelScan for remote condition monitoring and maintenance. Exports of transformers, power quality technologies and other key products to markets like Middle East, Southeast Asia and neighboring countries in South Asia accounted for around 25% of the order book.
As of March 31, 2024, the order backlog stood at INR 7,229.5 crore, providing revenue visibility for the coming quarters.
Revenue
At INR 1699.2 crore, up 33.1% QoQ and 27.2% YoY, the company delivered a strong revenue performance. This was a result of solid order execution reflects a diverse revenue mix and focus on continuous improvement in operations.
Profit
Mitigation of external supply chain challenges also supported margin and profit recovery in Q4FY24. At INR 172.6 crore or 10.2% Operational EBIDTA was in double-digits as a result of a favorable revenue mix, operational excellence and digitalization efforts. Profit before tax stood at INR 152.2 crore, up 133.8% YoY and profit after tax was at INR 113.7 crore, up 123.7% YoY.
Full Year
For the full year ending March 31, 2024, orders were at INR 5536.3 crores up 14% (excl HVDC) from the corresponding last twelve months, while revenue stood at INR 5246.8 crores with a 17% increase during the same period.
The first two quarters of the year were impacted by supply limitations such as delays in procurement of semiconductors and other key electronic components. While continually monitoring the situation, the company has also deployed strategic initiatives to mitigate the impact of supply chain turbulence to the extent possible.
In parallel, our commitment to become carbon neutral by 2030 in our own operations drove the transition to green electricity through Power Purchase Agreements (PPAs), in-house solar and buying International Renewable Energy Certificates (I-RECs) apart from taking measures to reduce our overall energy consumption through various energy conservation projects. We also reviewed our freshwater consumption and waste generations and have taken suitable measures for resource conservation by bringing down our water consumption by 25% and recycling 96% of our waste by embracing circularity.
Board meeting outcome
Based on the Company’s performance for the year ended March 31, 2024, the Board of Directors has recommended a final dividend of INR 4 per share of face value INR 2 each, i.e. 200 percent, subject to the approval of shareholders at the ensuing Annual General Meeting.
Outlook
Energy transition projects are spread across segments, and their multiplier impact is only possible when brought together by a flexible, digital, and secure grid. India’s sheer size and its huge scope for growth means that its energy demand is set to grow by more than that of any other country in the coming decades – as per International Energy Agency (IEA), to continue its energy transition journey, India needs to add a grid the size of the European Union by 2040. Fundamental market drivers remain intact despite sporadic macro-economic challenges. This provides medium to long term opportunities for power technologies, especially in our identified high growth segments – renewables, HVDC, data centers, transport, etc.
