Hitachi Energy India (POWERINDIA) Q2 24/25 earnings summary

Executive summary

• Achieved record order backlog of INR 8,910 crore, with strong YoY growth in orders (11.7%) and revenue (26.5%), driven by robust demand in renewables, data centers, transmission, and industrial electrification.

• Profit after tax doubled YoY to INR 52.3 crore, and operational EBITDA margin improved to 8.1%.

• Focused on operational efficiency, safety, sustainability, and employee well-being, with significant progress in CO2 and waste reduction.

• Celebrated 75 years in India with stakeholder engagement and technology showcases, reinforcing leadership in energy transition.

• Emphasized leveraging large backlog for future revenue and margin growth, and continued investment in capacity, talent, and digital initiatives.

Financial highlights

• Q2FY25 orders: INR 1,952 crore (up 11.7% YoY); revenue: INR 1,553.8 crore (up 26.5% YoY); H1FY25 revenue: INR 2,881.2 crore (up 26.9% YoY).

• Q2FY25 PAT: INR 52.3 crore (up 111.4% YoY); Q2FY25 PBT: INR 70.6 crore (up 118% YoY); operational EBITDA: INR 126.3 crore (margin 8.1%).

• Highest ever order backlog at INR 8,910 crore as of September 30, 2024, providing 26 months of revenue visibility.

• Operational cash flow negative for the quarter due to timing of collections and payouts, especially for large HVDC projects; short-term borrowing increased by INR 35 crore.

• H1FY25 net cash from operating activities: INR 54.57 crore; cash and cash equivalents at September 30, 2024: INR 78.12 crore.

Outlook and guidance

• No change to double-digit margin guidance for the year; focus remains on operational efficiency and leveraging large order backlog for revenue and margin growth.

• Expect at least one major HVDC equipment order to be finalized within the financial year.

• Continued investment in capacity, workforce upskilling, and digital initiatives to capture energy transition opportunities.

• Prioritizing leadership in core segments and expansion into service, export, and digital markets.

• India’s plan to increase power transmission capacity by 35% by 2032 is expected to drive significant investment in renewables, HVDC, data centers, and electric transportation.