Hitachi Energy India Limited has reported stellar performance for the first quarter, with record-breaking orders and robust revenue growth. The company's strategic focus on balancing operational complexity and efficiency has yielded impressive results across key financial metrics.

Record-Breaking Order Intake

Hitachi Energy India secured all-time high orders of Rs 11,339.20 crores in Q1, representing a staggering 365% year-on-year growth. This exceptional performance has resulted in a record order backlog of Rs 29,135.00 crores, providing strong revenue visibility for the coming quarters.

Strong Revenue Growth and Profitability

The company reported revenue of Rs 1,529.80 crores, marking a 15.3% year-on-year increase. Profit before tax stood at Rs 176.90 crores, while profit after tax reached Rs 131.60 crores. Operational EBITDA improved significantly to Rs 170.20 crores, with a healthy margin of 11.1%.

Key Order Wins

A major contributor to the order book was a High Voltage Direct Current (HVDC) project from Adani Energy Solutions for the Bhadla-Fatehpur 6,000 megawatt transmission line. This project, awarded to a consortium of Hitachi Energy India and BHEL, showcases the company's expertise in advanced power transmission technologies.

Other notable orders included:

• 30 units of 765 kV transformers for POWERGRID
• Various renewable energy projects
• Grid Integration Systems (GIS) for solar and industrial applications
• Rail and metro projects, including transformers and automation solutions

Segment-wise Performance

The transmission segment led order growth with a remarkable 625% increase, followed by the rail and metro segment at 845%. The data center segment also showed strong momentum with a 98% growth. However, the renewable energy segment experienced a temporary decline of 25%.

Export and Service Business

Exports maintained a consistent 25% contribution to the order book, with orders received from Europe, South America, and Asia. The service business, which was carved out as a separate unit from April 1, grew by 90% year-on-year and contributed a high single-digit percentage to the overall order book.

Future Outlook and Investments

Hitachi Energy India remains optimistic about the future, citing the ongoing "energy super cycle" and growth opportunities both locally and globally. The company is investing Rs 2,000.00 crores in capacity expansion across multiple business units to meet the growing demand.

Management expects one to two HVDC projects to be finalized in the current financial year and anticipates two to three HVDC projects annually in coming years to manage India's increasingly complex transmission network.

Conclusion

With its strong order book, improved profitability, and strategic investments in capacity expansion, Hitachi Energy India is well-positioned to capitalize on the growing opportunities in India's power transmission and renewable energy sectors. The company's focus on advanced technologies and sustainable solutions aligns well with the country's energy transition goals, setting the stage for continued growth in the coming years.

Hitachi Energy India Limited has announced robust financial results for the first quarter, showcasing significant growth in orders and profitability. The company's performance reflects its strong position in India's rapidly evolving power sector.

Record-Breaking Order Book

The company reported an exceptional increase in orders, which surged by 365.4% year-on-year to INR 11,339.20 crore in Q1. This remarkable growth was primarily driven by a major project win - the Bhadla-Fatehpur High Voltage Direct Current (HVDC) link. Additionally, Hitachi Energy secured a substantial order from POWERGRID for 30 units of 765-kilovolt (kV) 500 megavolt-ampere (MVA) single-phase transformers.

The order backlog reached an all-time high of INR 29,125.30 crore as of June 30, providing strong revenue visibility for upcoming quarters.

Revenue and Profitability

Hitachi Energy India's revenue for Q1 stood at INR 1,529.80 crore, marking a 15.3% increase compared to the same period last year. This growth was attributed to effective order execution and improved operational efficiency.

The company's profitability saw a significant boost:

Operational EBITDA for the quarter was INR 170.20 crore, resulting in a double-digit margin of 11.1%.

Segment Performance

Transmission continued to lead the order book, followed by strong contributions from the rail & metro and data center segments. The service business demonstrated impressive growth, with orders increasing by 91% year-on-year. Key service orders included SCADA upgrades, equipment replacement, and annual maintenance contracts.

Exports remained consistent, contributing 24.7% to orders (excluding HVDC orders) in Q1. The company secured export orders from Europe, South America, and Asia during this period.

Management Commentary

N Venu, Managing Director & CEO of Hitachi Energy India Ltd., commented on the results: "India's ongoing efforts to integrate renewables, coupled with growth in data centers and AI, the increasing electrification needs of industry and transport continue to drive grid infrastructure development in the country. As one of the fastest growing large economies in the world, India needs to persist with deploying state-of-the-art technologies at speed and scale as it powers ahead to inspire the next era of a sustainable energy future for all."

Financial Management and Outlook

The company reported strong operating cash generation, supported by steady collection of receivables and advances. This positive cash impact aligns with Hitachi Energy's commitment to improving margins and strengthening overall operational efficiency and capacity.

Looking ahead, the company remains optimistic about India's economic growth and energy sector developments. With India achieving a significant milestone of 50% installed electricity capacity from non-fossil fuel sources as of March 31, and power consumption growing by nearly 7% in March, Hitachi Energy is well-positioned to contribute to the country's expanding power grid infrastructure.

Corporate Updates

In other news, Hitachi Energy India announced the appointment of Ms. Seema Siddiqui as Communications & Government Relations Manager, effective August 1. Ms. Siddiqui brings over 18 years of experience in corporate communications and will be joining as a Senior Management Personnel and Country Management Committee (CMC) Member.

The company also reported on its sustainability initiatives, including achieving 100% renewable electricity in operations and making significant progress in reducing CO2 emissions, water usage, and waste disposal.

As Hitachi Energy India continues to leverage its technological expertise and strong market position, it remains focused on capitalizing on the growing opportunities in India's power sector and contributing to the country's sustainable energy future.