• Order Intake: INR 1,952 crores, up 11.7% year-on-year.
• Revenue: INR 1,553.8 crores, a growth of 26.5% year-on-year.
• Profit Before Tax (PBT): INR 70 crores, increased by 18% year-on-year.
• Profit After Tax (PAT): INR 52.3 crores, up 11.4% year-on-year.
• Operational EBITDA: INR 126.3 crores, with a margin of 8.1%.
• Order Backlog: INR 8,910 crores, providing revenue visibility for several quarters.
• Data Center Segment Growth: 346% year-on-year.
• Renewable Segment Growth: 135% year-on-year.
• Export Orders: Accounted for 22% of total orders booked.

• Warning! GuruFocus has detected 1 Warning Sign with MEX:RA.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hitachi Energy India Ltd (BOM:543187) achieved a record high order backlog of 8,910 crores, providing strong revenue visibility for upcoming quarters.
• The company reported a significant year-on-year revenue growth of 26.5% for the quarter, driven by favorable order execution.
• Operational efficiency improvements led to a profit before tax increase of 18% year-on-year, showcasing effective cost management.
• The company has been recognized with the prestigious B Business World, India's most sustainable companies award, highlighting its commitment to sustainability.
• Hitachi Energy India Ltd (BOM:543187) is actively investing in capacity expansion, including starting work on transformer facilities, to support future growth.

Negative Points

• The company faced a negative operational cash flow for the quarter due to high payouts related to large projects, indicating potential cash management challenges.
• There is ongoing uncertainty regarding the finalization of large HVDC orders, which could impact future revenue streams.
• Other expenses remain high, with no significant reduction expected in the near term, potentially affecting profitability.
• The company is still operating under a transitional service agreement with ABB, which may incur additional IT costs until fully independent.
• There are concerns about supply chain issues, particularly with electrical steel, although the company has not faced significant problems yet.

Q & A Highlights

Q: Given the strong operational performance, do you anticipate any changes to your guidance on achieving double-digit margins by the end of the year? A: N Venu, MD & CEO: No, there are no changes to our guidance. We maintain our previous statements regarding margin expectations.

Q: Regarding the large HVDC orders, are you currently involved in any of these projects, and what is the status of your participation? A: N Venu, MD & CEO: We are bidding for these projects. One HVDC tender has been awarded to our customer, and we are currently bidding to supply equipment for this and other upcoming projects.

Q: Can you provide an update on the status of the HVDC Laya project bid submission? A: N Venu, MD & CEO: The bid has not been submitted yet. Discussions are ongoing regarding the suitability and other factors.

Q: Are there any ongoing issues with the supply chain, particularly concerning electrical steel for transformers? A: N Venu, MD & CEO: We have not faced any significant supply chain issues. We have robust agreements with global suppliers, ensuring a steady supply of electrical steel.

Q: How are you managing the fluctuations in CRGO prices, and how does it affect your realizations? A: N Venu, MD & CEO: We have long-term agreements with suppliers that include price escalation clauses. This helps us manage fluctuations and maintain stable realizations.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.