Hitachi Energy India (POWERINDIA) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly order intake of INR 11,594.3 crore in Q3FY25, up 838% year-over-year, driven by a major HVDC order and robust demand across segments.

• Revenue rose 31% year-over-year to INR 1,672.4 crore, supported by favorable execution mix and operational efficiencies.

• Profit after tax surged nearly fivefold year-over-year to INR 137.4 crore, with operational EBITDA margin reaching 10.1%.

• Order backlog reached a record INR 18,994.4 crore as of December 31, 2024, providing strong revenue visibility for upcoming quarters.

• Announced INR 2,000 crore investment plan over the next 4-5 years and formation of a dedicated Service Business Unit from April 2025.

Financial highlights

• Q3FY25 revenue: INR 1,672.4 crore, up 31% year-over-year; operational EBITDA: INR 168.9 crore, margin at 10.1%.

• Q3FY25 profit before tax: INR 184.1 crore, up 445% year-over-year; profit after tax: INR 137.4 crore, up 498%.

• Operational EBITA margin improved to 8.7% (Q3FY25) from 4.6% (Q3FY24).

• Material costs at 59.2% of revenue, personnel expenses at 8.4%, and other expenses at 19.3%.

• Became debt-free as of December 31, 2024, supported by strong collections and project advances.

Outlook and guidance

• Focus on maintaining leadership in utilities and HVDC, expanding into data centers and industries, and increasing export and digital business.

• New Service Business Unit to be launched in FY 2025-2026 to tap into an installed base of INR 80,000+ crore.

• Double-digit margin guidance for FY 2025 is maintained, with operational excellence and leveraging backlog prioritized.

• Strategic investments in clean energy, infrastructure, and digital innovation expected to drive mid- and long-term growth.

• Despite short-term recalibration, long-term market outlook remains positive, with focus on energy storage, green hydrogen, and industrial sectors.