Hitachi Energy India Limited announces Q4FY24 and full year results: Strong cyclical revenue favors margin growth

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.

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About Hitachi Energy

Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We are advancing the world’s energy system to be more sustainable, flexible and secure and we collaborate with customers and partners to enable a sustainable energy future – for today’s generations and those to come. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries, serving customers in utility, industry, transportation, data centers and infrastructure sectors. With innovative technologies and services including the integration of more than 150 gigawatts of HVDC links into the power system, we help make the energy value chain more efficient, making electricity more accessible to all. Together with stakeholders across sectors and geographies, we enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. Headquartered in Switzerland, we employ around 45,000 people in 90 countries and generate business volumes of around $13 billion USD. 

In India, Hitachi Energy operates under the legal entity name Hitachi Energy India Limited and is listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) as POWERINDIA, Scrip code 543187.

https://www.hitachienergy.com

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About Hitachi, Ltd.

Hitachi drives Social Innovation Business, creating a sustainable society through the use of data and technology. We solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products. Hitachi operates under the 3 business sectors of “Digital Systems & Services” – supporting our customers’ digital transformation; “Green Energy & Mobility” – contributing to a decarbonized society through energy and railway systems, and “Connective Industries” – connecting products through digital technology to provide solutions in various industries. Driven by Digital, Green, and Innovation, we aim for growth through co-creation with our customers. The company’s revenues as 3 sectors for fiscal year 2023 (ended March 31, 2024) totaled 8,564.3 billion yen, with 573 consolidated subsidiaries and approximately 270,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.