Hitachi Energy shares tumble 4% post Q1FY25 show; profits, margin slips QoQ

Shares of Hitachi Energy fell by 4.36 per cent per share on the BSE in Thursday’s intraday trade. This came after the company on Wednesday reported a decline in its bottom line on a quarter on quarter basis for the first quarter of financial year 2024-25 (Q1FY25).

Hitachi Energy India reported a significant increase in net profit to Rs 10.4 crore for the June quarter of FY25, marking a four-fold rise from Rs 2.4 crore in the same period last year. However, on a quarterly basis, net profits were down by 91 per cent against Rs 113.7 crore recorded in the previous quarter. 

 

Revenues also surged 27.3 per cent on a year on year basis to Rs 1,327.3 crore from Rs 1,043 crore. Though, sequentially the topline slipped by 22 per cent. 

The company’s earning before interest, tax, depreciation and amortisation (Ebitda) margin also slipped to 3 per cent from 8.8 per cent in the preceding quarter. 

The company’s management said that the growth was led by robust investments in the power sector, particularly in renewables, amidst the accelerating energy transition. He highlighted the company's strong order intake totaling Rs 2,436.7 crore during the quarter, more than double compared to the previous year.

Renewables played a pivotal role, the management said, securing substantial orders including grid integration projects amounting to nearly 2.5GW, alongside various power quality initiatives. 

The company also saw orders from existing power plants for expansions, upgrades, and efficiency enhancements. Additionally, it received contracts from distribution utilities for enhancing digital solutions aimed at improving real-time visibility and network management.

Service orders encompassed GIS upgrades, annual maintenance contracts, replacement equipment, and overhaul of transformer components. Exports surged by 47 per cent year-on-year, excluding a major high-voltage direct current export order.

Orders for transformers, power quality technologies, and other key products were secured from diverse markets such as Europe, the Middle East, Australia, and neighbouring South Asian countries.

Hitachi Energy India’s order backlog reached a record high of Rs 8,539.4 crore as of June 30, 2024, the company said in a statement. 

At 01:07 PM; the shares of the company were trading 2.61 per cent higher at Rs 11,733.85 per share on the BSE. By comparison, the BSE Sensex was down 0.16 per cent at 80,023 levels.