Hitachi Energy India Limited tabled its financial performance report for the period January to March 2022 and from January 2021 to March 2022. The highlights of the YoY performance for the QE March 2022 are an increase of 23% in orders, a rise in revenue by 11% and the growth of 31% in PAT.
Among the highlights of the full year performance for the YE March, 2022 are 24% rise in total orders, a solid order backlog of Rs 4,672.3 crore at the year end and 100% use of fossil free electricity in operations. The Board’s recommendation of a dividend of Rs 3 per share is among the other highlights of the report.
Orders
In the quarter ending 31 March, the company received orders worth Rs 1,043.6 crore, up by 22.9 per cent YoY, driven across sectors – utilities and industries. The Company won major orders from public and private companies to strengthen state grids, integrate renewables and support digitalisation. Industries, especially, steel and oil and gas, contributed towards orders for traditional power quality solutions, as well as evolving opportunities like digital substation enhancements. The continuing electrification of India’s railways generated demand for trackside power equipment.
In Services, industries such as steel drove orders, from expanding their power infrastructure to lifecycle services – remote and on-site. The consultancy part of the business supported renewable and BESS studies from India and around the world, as well as technical customer training activities.
From North America to Malaysia, increasing global demand for power quality technologies and grid integration projects helped to boost the order book with Exports contributing to over 24 per cent of orders in the quarter.
As of March 31, 2022, the order backlog stood at Rs 4,672.3 crore, which is expected to result in sustained revenue in the coming months.
Revenue
Revenue rose 11 per cent YoY reaching Rs 1,142 crore for the quarter ended March 31, 2022, as the company executed and delivered on domestic and global orders. Despite the ensuing third wave of Covid-19 at the start of the year, the Company executed utility projects to help prepare for high demand summer months.
Using CoreTec, CoreSense and e-devices, the Company also completed a transformer digitalisation pilot with add-on solutions to upgrade all makes of transformers. As off-shore wind generation develops as a critical lever in the energy transition, the company introduced OceaniQ – innovative offshore portfolio of products, solutions, and services for reducing costs, increasing safety and improving efficiency for the offshore segment.
Operations
The quarter witnessed COVID-19-led restrictions in January, persistent semiconductor shortages and high commodity and raw material prices, resulting in margin pressure across the industry. However, the company remained selective on contracts, revisited long-term agreements with customers and suppliers and through intense collection efforts improved cash performance.
Supporting the vision of advancing a sustainable energy future for all, a Smart Electric Grid Lab was inaugurated to develop future talent at NIT Warangal. The technologies and projects that are helping to accelerate the energy transition were recognised by India Smart Grid Forum, a public private partnership initiative of Ministry of Power, Government of India, in their Innovation Awards.
Profit
Profit before tax was Rs 70.7 crore, up 31.7 percent YoY, despite high commodity and other supply challenges. Profit after tax was up 31.2 percent YoY to Rs 51.7 crore. Through continued focus on efficiencies, Operational EBITA stood at Rs 77.1 crore in the quarter.
Board outcome
Based on the Company’s performance and encouraging market outlook, the Board of Directors recommended a dividend of R 3 per share (150 percent), subject to the approval of members at the forthcoming Annual General Meeting.
Following the recommendation of the Nomination and Remuneration Committee, the Board of Directors, at its meeting reappointed N Venu as Managing Director and CEO of the Company for a further period of five years commencing December 2, 2022. They also reappointed the independent directors – Akila Krishnakumar, Nishi Vasudeva and Mukesh Butani – for a second term of five years commencing December 24, 2022. The re-appointments are subject to the approval of the Shareholders.