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Hitachi Energy India Limited announces Q1FY23 results:
Significant order wins in challenging markets
- Strong growth in orders, up 300% YoY
- Revenue up 24% YoY
- HVDC link to increase Mumbai power inflow by 50%
- Rising commodity prices and supply chain constraints impact margin
- Published first Business Responsibility and Sustainability Report as industry best practice
Hitachi Energy India Ltd. announced its results for the financial period from April to June 2022.
“The Kudus-Mumbai HVDC order reiterates confidence in our technology expertise and execution capabilities, and supports the country’s commitment to energy transition,” said N Venu, Managing Director and Chief Executive Officer, Hitachi Energy India Ltd. “Even as we see continued top-line momentum, we face tailwinds from rising commodity costs and supply chain constraints, impacting profitability. We are implementing multiple measures to address this turbulence,” he added.
The company booked orders worth INR 3,054.6 crore, up 309.7 percent YoY, mainly driven by utilities as energy transition gathers pace. Rail orders continued and industrial customers ordered products like digital transformers to improve efficiencies. Service orders included automation of transmission infrastructure, HVDC asset management solutions and spare parts supplies. Products for grid infrastructure and power quality technologies continued to boost exports that contributed more than 20 percent to the order intake.
The order backlog at the end of the quarter witnessed robust growth to INR 6,777.2 crore, the highest in three years, providing revenue visibility for coming quarters.
HVDC link order to increase power inflow to Mumbai by 50%
The company won a major order from Adani Mumbai Electric Infrastructure to provide a high-voltage direct current (HVDC) transmission system linking Kudus to Mumbai.
Mumbai is experiencing a rapid increase in electricity consumption, seeing peak demand increasing to 3,850 megawatts (MW) in 2022. Utilities are therefore ramping up to meet rising demand for reliable power supplies with minimum environmental impact.
Hitachi Energy’s 80-kilometer, 1,000 MW HVDC link will help increase supply of power to the city by almost 50 percent with minimal losses. The HVDC connection will strengthen the existing AC transmission infrastructure, and support Mumbai’s Climate Action Plan.
The 50-kilometer underground stretch of the link will save almost 2.3 square kilometers of space – equivalent to twice the area of Shivaji Park, Mumbai.
Revenues rose 24.4 percent YoY reaching INR 991.3 crore for the quarter ended June 30, 2022. Supported by world-class project management, the company commissioned several substation and switchyard projects for utilities, industries and infrastructure sectors.
Profit and operations
In the quarter, profit before tax was at INR 2.1 crore, profit after tax at INR 1.3 crore, while Operational EBITA stood at INR 15.3 crore. The quarter witnessed rising cost of commodities and supply chain bottlenecks, creating a drag on margins. Various measures are being adopted to reduce the impact, with a special focus on semi-conductors.
Bringing our Sustainability 2030 vision into practice, Hitachi Energy India operations shifted to 100 percent fossil free electricity in December 2021. The company also engineered a solution to power its own project sites with solar power. Freshwater consumption at factories was reduced and a new eco-efficient offering under the EconiQ™ portfolio are further examples of the company’s commitment to climate change mitigation, finding pride of place in our first Business Responsibility and Sustainability Report, a proactive non-financial disclosure done for the last financial period
Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all. We serve customers in the utility, industry and infrastructure sectors with innovative solutions and services across the value chain. Together with customers and partners, we pioneer technologies and enable the digital transformation required to accelerate the energy transition towards a carbon-neutral future. We are advancing the world’s energy system to become more sustainable, flexible and secure whilst balancing social, environmental and economic value. Hitachi Energy has a proven track record and unparalleled installed base in more than 140 countries. Headquartered in Switzerland, we employ around 38,000 people in 90 countries and generate business volumes of approximately $10 billion USD.
In India, Hitachi Energy operates under the legal entity name Hitachi Energy India Limited (formerly known as ABB Power Products and Systems India Limited) and is listed on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) as POWERINDIA, Scrip code 543187.
Hitachi drives Social Innovation Business, creating a sustainable society with data and technology. We will solve customers' and society's challenges with Lumada solutions leveraging IT, OT (Operational Technology) and products, under the business structure of Digital Systems & Services, Green Energy & Mobility, Connective Industries and Automotive Systems. Driven by green, digital, and innovation, we aim for growth through collaboration with our customers. The company’s consolidated revenues for fiscal year 2021 (ended March 31, 2022) totaled 10,264.6 billion yen ($84,136 million USD), with 853 consolidated subsidiaries and approximately 370,000 employees worldwide. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.