Hitachi Energy India (POWERINDIA) Q4 2019 earnings summary

Executive summary

• First reporting period covered Feb 19–Dec 31, 2019; revenue was INR 3,230.74 crore, PBT INR 220.65 crore and PAT INR 165.39 crore.

• Profitable performance was supported by execution and on-time delivery; orders reached INR 2,641.9 crore and year-end backlog was INR 5,100.7 crore.

• Power Grids operations became a standalone legal entity following the demerger, effective Dec 1, 2019; financial statements reflect the transfer from the scheme’s Apr 1 appointed date.

Financial highlights

• Revenue from operations INR 3,230.74 crore; total income INR 3,231.21 crore for Feb 19–Dec 31, 2019.

• PBT before exceptional items INR 261.44 crore; excluding INR 40.79 crore in demerger costs, PBT was INR 261.44 crore; reported PBT INR 220.65 crore.

• PAT INR 165.39 crore; total comprehensive income INR 165.89 crore; basic and diluted EPS INR 44.69.

• Orders received INR 2,641.9 crore; order backlog INR 5,100.7 crore at Dec 31, 2019.

• Operating cash flow was negative INR 72.66 crore; investing cash flow was negative INR 72.77 crore and financing cash flow was positive INR 333.47 crore.

Outlook and guidance

• Growth opportunities identified in grid automation, rail electrification, HVDC, data centers, EV infrastructure, microgrids and renewables integration; no quantified financial guidance was stated.

• India’s generation capacity was projected to rise from ~350 GW to 484 GW by FY22, supporting demand for grid equipment, digital substations and transmission investment.

• COVID-related closures of plants, project sites and offices from Mar 25, 2020 were expected to affect performance; the impact was to be assessed in the quarter ended Jun 30, 2020.

• Renewables and rail were expected to remain growth areas as activity normalizes; data centers and e-mobility offered upside, while price pressure was expected in rail and solar projects.