Hitachi Energy To Sustain Double-Digit Growth In Operating Profit, Says CEO N Venu

Hitachi Energy India Ltd. will sustain double-digit growth in margin and operational profitability in coming quarters because all levers are at force to support it, according to Managing Director and Chief Executive Officer N Venu.

The air condition manufacturer is confident to sustain double-digit operational Ebitda going forward. The company also expects that it will grow at a higher rate than the market average, Venu said in an interview to NDTV Profit.

All the levers are in play, including domestic topline growth up. The tailwinds rising from the energy transition are so huge that the company has been taking a lot of action for some time over the localisation of manufacturing, he said.

Exports are another lever as it is very robust and likely sustain the momentum. The service is also helping us in margin acquisition. Hitachi Energy has created a separate business unit for the services segment which the company is leveraging. It has recorded more than 60,000-installed payments, he said.

• Margin at 16.3% versus 7.1%

• Ebitda at Rs 299 crore versus Rs 110 crore

• Revenue rose 17.9% to Rs 1,833 crore from Rs 1,554 crore

• Net Profit at Rs 264 crore versus Rs 52.3 crore

July–September quarter was a strong with resilient margins and a strategic focus on execution. This focus has given Hitachi Energy India a sustained momentum in top line and bottom line, he said.

For several quarters, there is a strong momentum in orders. Hitachi Energy India has become more competitive because of local manufacturing. Product mix has been good in this quarter, he said.

Hitachi Energy had guided two years back that the company is set to deliver double-digit Ebitda growth. The company has reached much ahead of the deadline, he said.