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.

Hitachi Energy India Limited has announced its financial results for the first quarter, showcasing remarkable growth in orders and profitability. The company's aggressive growth strategy and multi-segment approach have yielded impressive results, positioning it strongly in the rapidly evolving Indian energy sector.

Record-Breaking Order Book

The company reported a staggering 365.4% year-on-year increase in orders, totaling ₹11,339.20 crore for the quarter. This surge was primarily driven by the large project win of the Bhadla-Fatehpur High Voltage Direct Current (HVDC) link. Additionally, Hitachi Energy secured a significant bulk order from POWERGRID to supply 30 units of 765-kilovolt (kV) 500 megavolt-ampere (MVA) single-phase transformers.

The order backlog reached an all-time high of ₹29,125.30 crore, providing strong revenue visibility for the coming quarters.

Financial Performance Highlights

Key financial metrics for Q1 compared to the same quarter last year:

The company's profitability saw a significant boost, with PAT surging by 1163.1% year-on-year. Operational EBITDA margin remained strong at 11.1%, reflecting the company's focus on operational excellence and efficient execution of high-margin orders.

Segment-wise Performance

Transmission continues to lead the order book, followed by strong performances in the rail & metro and data center segments. The service business also showed robust growth, with orders increasing by 91% year-on-year. Key service orders included SCADA upgrades, equipment replacement, and annual maintenance contracts.

Export Momentum

Exports maintained consistency, contributing 24.7% to orders (excluding HVDC orders) in Q1. The company received export orders from Europe, South America, and Asia, demonstrating its global competitiveness.

Strategic Focus Areas

N Venu, Managing Director & CEO of Hitachi Energy India Ltd., highlighted the company's strategic direction: "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."

The company is focusing on:

1. Maintaining leadership in core segments such as Renewables, Utilities, HVDC, Industries, and Infrastructure.
2. Expanding into new segments like data centers.
3. Shifting focus to include Exports, Service, and Digital solutions.
4. Expanding at the edge of the grid, including Battery Energy Storage Systems (BESS).
5. Strengthening margin and cash focus while delivering on the largest-ever backlog.

Outlook

With India's power consumption growing by nearly 7% in March and the country achieving a significant milestone of 50% installed electricity capacity from non-fossil fuel sources, Hitachi Energy India is well-positioned to capitalize on the increasing demand for power grid infrastructure.

The company's record order book, strong financial performance, and strategic focus on high-growth segments indicate a positive outlook for the coming quarters, as it continues to play a crucial role in India's energy transition and infrastructure development.