Shares of multi-bagger company Hitachi Energy increased 18% following Q3FY25 results that revealed a 498% increase in net profit to ₹137.4 crore. Strong revenue visibility was ensured by a record order intake of ₹11,594.3 crore and operational efficiency, contributing to a 31% YoY growth in revenue.
Hitachi Energy’s stock jumped 18% in early trading on January 30 to ₹12,060 per share after the company’s Q3FY25 earnings were released. These results exceeded Street forecasts. Primarily due to a low base, the firm announced a 498% year-on-year (YoY) growth in consolidated net profit for Q3 after market hours on Wednesday, hitting ₹137.4 crore. Net profit increased 162.7% sequentially from ₹52.3 crore in the prior quarter.
The October-December 2024 quarter saw a 31% YoY increase in revenue to ₹1,672.4 crore, fueled by improved operational efficiency and a favorable execution mix. With a double-digit margin of 10.1% and EBITDA of ₹168.9 crore for the third quarter, the company’s ongoing efforts to improve profitability and operational efficiency are highlighted.
The quarter that ended on December 31, 2024, had the company’s highest-ever quarterly order intake of ₹11,594.3 crore. A sizable high-voltage direct current (HVDC) order for the transmission of renewable energy from Khavda, Gujarat, to Nagpur, Maharashtra, was the leading cause of this increase. According to the company’s earnings report, power quality and substation projects boosted order book progress in the transmission segment (apart from the HVDC contract).
Data centers, industry, and transportation were other important contributing categories. Exports comprised over 40% of all Q3FY25 orders, excluding the one-time huge HVDC purchase. Power quality, substation, and renewable orders came from Australia, Indonesia, Canada, Croatia, Azerbaijan, and other countries. Similarly, 11% of all orders (not including HVDC) came from the services industry.
According to Q3 results filing, the business announced its highest-ever order backlog as of December 31, 2024, at ₹18,994.4 crore. This ensures good revenue visibility for the upcoming quarters. In the meantime, throughout the previous five years, the stock has produced a multi-bagger return of 1400%.
Growth Opportunities:
Analysts predict that the Indian economy will expand in the upcoming years despite a little negative recalibration of growth predictions for the near future. In addition, by 2047, India’s power consumption is expected to surpass 700 GW, 2.5 times its present levels.
The nation must increase its renewable capacity above 50 GW annually to fulfill this massive demand and its 2030 ambitions. Along with increasing generating capacity, this calls for fortifying grid infrastructure and creating regional supply networks.
In addition to expanding transmission infrastructure, concentrating on high-performing businesses and sectors such as energy storage and green hydrogen would boost market expansion overall. According to the company’s earnings filing, significant investments in clean energy, revolutionary infrastructure, and digital innovation will thereby help India accomplish its energy targets—both short- and long-term—to build a sustainable energy future for everyone.
