Hitachi Energy India Limited Announces Q1FY25 Results: Sustained YoY Growth Trend

QUARTER HIGHLIGHTS
 Strong order growth, doubling YoY
 Revenue up 27% YoY
 Op EBITDA up 95% YoY
 Highest ever order backlog of INR 8,539.4 crore

Hitachi Energy India Ltd. announces results for April to June 2024

*excluding HVDC order in FY23
**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).

“As the energy transition gathers pace, investments in the power sector – especially renewables continued to grow,” said N Venu, MD & CEO of Hitachi Energy India Ltd. “This is reflected in our strong order intake and record order backlog which we are steadily converting to revenues through solid execution while keeping a close watch on costs. We are optimistic on ongoing market support, especially in our identified high growth segments – renewables, HVDC, data centers, electrification of transport, etc.”

Orders
In the quarter ended June 30, 2024, orders totaled INR 2,436.7 crore, more than doubling YoY. Renewables led the charge – from studies across utilities and industries, to nearly 2.5GW of grid integration projects, along with several power quality projects. Expansion, upgrades and improved efficiency also resulted in orders from existing power plants. We also received orders from distribution utilities, for upgrade of digital solutions to provide better real time visibility and network management.

Service orders included GIS upgrades, Annual Maintenance Contracts and replacement equipment as well as overhaul of key transformer components.

Exports were up ~47% YoY (excl large HVDC export order). Orders for transformers, power quality technologies and other key products were booked from markets like Europe, Middle East, Australia and neighboring countries in South Asia.

As of June 30, 2024, the order backlog stood at a record high of INR 8,539.4 crore, providing revenue visibility for the coming several quarters.

Revenue
Revenues for the March-June 2024 quarter were INR 1,327.3 crore, up 27.3% YoY. Revenue decline QoQ, following a cyclical pattern and impacted by a revenue mix with a traditional product bias. Relentless operational efforts ensured continued positive cash impact in the current quarter.

Profit
Profit before tax for the quarter was INR 15.1 crore and profit after tax was INR 10.4 crore, both up around three times YoY. Operational EBITDA for the first quarter was INR 61.5 crore (Op.EBITDA margin 4.6%) reflecting seasonality and business mix.

Outlook
As India underscores its commitment to economic development, the energy transition will be critical in ensuring sustainable and reliable electricity to power this growth. Deployment of technologies to make the grid flexible, digital, and secure will continue to be key drivers providing attractive medium to long term opportunities for power technologies, especially in our identified high growth segments – renewables, HVDC, data centers, electrification of transport, etc.