Hitachi Energy India Limited , a leader in power grid technologies, has announced impressive financial results for the second quarter, demonstrating strong growth across key metrics.

Financial Highlights

The company reported significant year-on-year growth in its quarterly performance:

Revenue and Profitability

Hitachi Energy India's revenue for the quarter stood at ₹1,915.20 crore, marking a 23.30% increase from ₹1,553.80 crore in the same quarter of the previous fiscal year. This growth is attributed to effective order execution and overall operational efficiency.

The company's net profit saw a remarkable surge, rising by 405.60% year-on-year to ₹264.40 crore, compared to ₹52.30 crore in the previous year's corresponding quarter. This substantial increase in profitability is due to the execution of good margin orders, sustained operational excellence, a favorable product mix, and increased export momentum.

Operational Performance

Operational EBITDA for the quarter reached ₹291.60 crore, resulting in a robust margin of 15.20%. This represents a significant improvement from the 8.10% margin reported in the same quarter of the previous year.

Order Book and Future Outlook

The company's order book remains strong, with new orders totaling ₹2,217.10 crore in the current quarter, up 13.60% year-on-year. Key contributors to the orderbook included industries and renewables, followed by transmission and transport sectors. Notably, exports maintained a 30.40% contribution to total orders.

The order backlog stood at ₹29,412.60 crore as of the end of the quarter, providing solid revenue visibility for upcoming periods.

Management Commentary

N Venu, Managing Director & CEO of Hitachi Energy India Ltd., commented on the results, stating, "The country has successfully built-up its non-fossil fuel energy installed base, to 50 percent of its electricity generation capacity. This notable milestone brings with it the challenges of seamlessly integrating intermittent, distributed energy into the national grid. It is essential that we enhance the resilience, reliability, and intelligence of the whole energy ecosystem to effectively deploy the expanding capacity."

Market Position and Future Prospects

Hitachi Energy India is well-positioned to capitalize on India's growing focus on clean energy and grid modernization. The company's expertise in advanced grid technologies, digitalization, and integrated solutions aligns well with the country's shift towards capacity absorption, grid integration, energy storage, and market reforms in the energy sector.

Despite global economic uncertainties, India's strong domestic demand, steady investments, and resilient external sector provide a positive outlook for companies like Hitachi Energy India operating in the power and energy infrastructure space.

As India continues to make strides in clean energy adoption, with the renewable energy sector attracting significant investments, Hitachi Energy India stands to benefit from the increasing demand for advanced power grid solutions and technologies.

Conclusion

Hitachi Energy India's quarterly results demonstrate the company's ability to deliver strong financial performance while positioning itself at the forefront of India's evolving energy landscape. With a robust order book and strategic focus on advanced grid technologies, the company appears well-equipped to capitalize on the opportunities presented by India's ongoing energy transition and infrastructure development initiatives.

Hitachi Energy India Ltd has issued a clarification regarding recent media reports about a ₹2,000 crore investment in Chennai. The company has emphasized that this investment is designated for a wholly owned subsidiary rather than the publicly listed entity.

Key Points of Clarification

• Investment Entity: The ₹2,000 crore investment is being made by Hitachi Energy Technology Services Private Limited, a separate legal entity.
• Ownership Structure: Hitachi Energy Technology Services Private Limited is a wholly owned subsidiary of Hitachi Energy Ltd., Switzerland.
• Listed Company Not Involved: Hitachi Energy India Limited, which is listed on Indian stock exchanges, is not directly involved in this investment.

Purpose of the Clarification

The company stated that this clarification was issued to provide transparency about the investment structure and ownership details of the Chennai facility. This move aims to prevent any misinterpretation regarding the listed entity's involvement in the reported initiative.

Media Reports

The clarification comes in response to media articles published on October 16, with the title "Hitachi Energy's next phase in Chennai at ₹2,000 crore to provide 3,000 jobs". These reports appeared in various media platforms, including Business Standard and The Hindu.

Regulatory Compliance

In line with its obligations as a listed company, Hitachi Energy India Limited has formally communicated this clarification to both the BSE Limited and the National Stock Exchange of India Limited. This step ensures that all stakeholders, including investors and regulatory bodies, are accurately informed about the company's operations and investments.

This clarification underscores the importance of clear communication in corporate actions, especially when it involves significant investments and job creation. It also highlights the complex structure of multinational corporations, where subsidiaries and parent companies may have separate legal identities and investment strategies.