Hitachi Energy India (POWERINDIA) Q1 24/25 earnings summary

Executive summary

• Achieved record order intake and highest-ever order backlog of INR 8,539.5 crore in Q1 FY25, driven by strong demand in renewables, transmission, and digital solutions.

• Orders surged 112.3% year-on-year to INR 2,436.7 crore, with revenue up 27.3% year-on-year to INR 1,327.3 crore, despite a sequential revenue decline.

• Profit before tax rose to INR 15.1 crore and profit after tax to INR 10.4 crore, both nearly tripled year-on-year.

• Operational EBITDA grew 95% year-on-year to INR 61.5 crore, with a margin of 4.6%.

• Exports rose 47% year-on-year, with significant orders from Australia, Europe, Middle East, South Asia, and other international markets.

Financial highlights

• Orders received: INR 2,436.7 crore (+112.3% YoY, +73% QoQ); Revenue: INR 1,327.3 crore (+27.3% YoY, -21.9% QoQ).

• Profit before tax: INR 15.1 crore (+344.1% YoY, -90.1% QoQ); Profit after tax: INR 10.4 crore (+333.3% YoY, -90.8% QoQ).

• Operational EBITDA: INR 61.5 crore (+95.2% YoY, -64.4% QoQ); margin: 4.6% (vs. 3% YoY, 10.2% QoQ).

• Order backlog: INR 8,539.5 crore, highest in company history as of June 30, 2024.

• Earnings per share (basic and diluted): INR 2.46, up from INR 0.57 in Q1FY24.

Outlook and guidance

• Targeting sustainable double-digit EBITDA margins by end of FY25, with no full-year margin guidance.

• Focus on leveraging large order backlog for revenue growth, operational excellence, and expansion in service, export, and digital segments.

• Expects continued strong demand in renewables, transmission, railways, and electrification of transport, supported by government initiatives.

• Continued investment in talent, safety, and capacity to support future growth.

• Record order backlog provides revenue visibility for several quarters ahead.