Hitachi Energy India Expects To Clock High Single-Digit Growth In Order Inflow After Strong Q3

Hitachi Energy India expects its order inflow to grow at a high-single-digit rate quarter over quarter, following a strong performance in Q3, according to the company’s Managing Director and Chief Executive Officer, N. Venu.

Hitachi Energy India reported a robust increase in its consolidated net profit, rising to Rs 137 crore in Q3 from Rs 23 crore in the same quarter last year. This surge in profit was driven by large order wins during the period under review. 

Talking to NDTV Profit, Venu said that the company expects to grow its order inflows sequentially. "Quarter-on-quarter, order inflow growth will be depending on market condition and it will be high single-digit to high double-digit is what we are looking at,” he said.

The company reported its highest-ever quarterly orders at Rs 11,594.3 crore in Q3. This growth was mainly driven by a large HVDC (high-voltage direct current) order for renewable energy transmission from Gujarat to Maharashtra.

“Our orders have grown in this quarter by almost 800% year on year, driven by the HVDC order that we have booked in this quarter. We also have a very robust order backlog, almost close to Rs 19,000 crores. The order backlog gives us visibility of revenue going forward for the next few quarters,” Venu said.

According to the top executive, a strong order backlog translates into higher revenues and this will help Hitachi Energy to sustain its topline growth going forward.

“When you have a strong order backlog, it will give you growth in revenue going forward and that's exactly what happened. You're going to look at the nine months this year, our revenues are Rs 4,500 crore, growing close to 25-26%. We believe that this kind of growth is sustainable going forward,” he said.

The Hitachi Energy India CEO mentioned that while the large HVDC order is a one-off and will not come back every quarter, the base order growth of the company will also be robust. 

“This quarter has been largely driven by a large HVDC order, and this HVDC order will not repeat in every quarter. That's also a thing. But as I said, if you take out this large HVDC order, our base order growth is also very robust in this quarter,” Venu said.

Shares of Hitachi Energy India were trading flat at Rs 11,749.40 as of 12:04 p.m. on Tuesday, while benchmark Nifty 50 was 0.77% higher at 23,540.60.