Hitachi Energy India reported a profit after tax of ₹372 million ($4.5 million) in the second quarter (Q2) for the financial year (FY) 2023, an increase of 8.5% year-over-year (YoY). The company attributed semiconductor shortages, commodity and freight price increases, and foreign exchange volatility for subdued growth in profit despite a 31% YoY increase in revenue for the July-September quarter.

The company, which provides technological solutions for the energy and locomotive sector, said its revenue for the quarter came in at ₹11.15 billion (~$134.61 million) compared with ₹8.50 billion (~$103.59 million)

The company said that the order backlog stood at ₹70.1 billion ($854.3 million) on September 30, providing revenue visibility for the coming quarters.

In the quarter ending September 30, the company received orders worth ₹12.79 billion (~$154.41 million), up 31% YoY.

The company’s profit before tax stood at ₹502 million (~$6.06 million) in Q2 FY 2023, increasing by 6% YoY. The operational EBITDA figures stood at ₹519 million (~$6.27 million) in Q2 FY 2023, decreasing by 6.6% YoY. The numbers grew by 239% sequentially.

Speaking on the results, N Venu, Managing Director and CEO of Hitachi Energy India, said, “The continued order growth momentum was driven by key wins in renewables, industries, and rail. Various mitigation efforts are yielding results in tempering the impact of supply chain challenges on the bottom line. Meanwhile, measures to reduce our own carbon footprint are yielding results with over 40% YoY reduction in emissions.”

It aims to achieve a potential reduction of 62% in CO2 emission (including fossil-free electricity) in FY 2023.

The company received some notable orders, which included transformers for NTPC Renewable Energy and SCADA solutions for the Indian Railways. Hitachi Energy in India continued to provide technical expertise services like renewable energy for utilities and engineering advisory for mining companies.

1H FY2023

Hitachi Energy India reported revenue of ₹21.06 billion (~$254.24 million) in the first half (1H) of the FY 2023, an increase of 28% YoY.

The company attributed the increase in revenue to increased traction from customers in the focus markets such as renewables, railways, data centers, and substations for industries.

Hitachi Energy India posted a profit before tax of ₹524 million (~$6.33 million) in 1H FY 2023, a decrease of 24% compared to 1H FY 2022. The profit after tax stood at ₹385 million (~$4.65 million), decreasing by 24% YoY.

The operational earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased by 34% YoY to ₹672 million (~$8.11 million) in 1H FY 2023.

Recently, Hitachi Energy inaugurated the greenfield power quality factory in Bangalore and initiated the manufacturing of next-generation switchgear operating mechanisms, catering to India and global markets.

In April this year, Hitachi Energy India announced that it had won an order worth about ₹1.6 billion (~$21 million) from Madhya Pradesh Power Transmission Package-II Limited, a project-specific business to strengthen the transmission system in the rural areas of Madhya Pradesh. The order was booked for nine grid connections in the last quarter, strengthening a power transmission network spanning more than 1,000 kilometers of overhead lines across nine rural districts of Madhya Pradesh.

Earlier this year, Hitachi Energy India announced that it had won orders exceeding ₹1.6 billion (~$21.47 million) to support the electrification of the country’s rail routes. Chittaranjan Locomotive Works and Diesel Loco Modernization Works, part of Indian Railways, had placed orders for traction transformers for passenger and freight locomotives in the October-December 2021 period.