Hitachi Energy Shares Hit Upper Circuit As Q3 Profit Sees Six-Fold Growth

The share price of Hitachi Energy India Ltd. rose nearly 20% on Thursday to hit the upper circuit after the company reported a near six-fold jump in its net profit for the third quarter of the current financial year.

Hitachi Energy saw a jump in the consolidated net profit to Rs 137 crore against Rs 23 crore reported in the same quarter last year. The rise in profit comes on the back of high orders. The orders posted triple-digit year-on-year growth, the company said in an exchange filing on Wednesday.

The company reported its highest-ever quarterly orders of Rs 11,594.3 crore for the period ending December, driven by a large HVDC order for renewable energy transmission from Gujarat to Maharashtra.

Excluding this order, the transmission segment, including power quality and substation projects, led the order momentum. Other key contributors included transportation, industries, and data centers, with exports accounting for over 40% of total orders in the third quarter.

The company’s order backlog reached a record Rs 18,994.4 crore by December, providing strong revenue visibility.

Revenue increased by 27.2% year-on-year for the three months ended December, reaching Rs 1,620 crore, supported by improved operational efficiencies.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 145.5% year-on-year to Rs 167 crore. The Ebitda margin expanded by 500 basis points to 10.3% from 5.3% in the same period the previous year.

In addition, the company became debt-free as of December benefiting from strong cash collections.

Hitachi Energy share price rose as much as 20% to Rs 12,277.50 apiece, the highest level since Jan 23, as of 10:15 a.m. This compares to a 0.47% advance in the NSE Nifty 50 index.

It has risen 112.37% in the last 12 months. Total traded volume so far in the day stood at 4.60 times its 30-day average. The relative strength index was at 48.

Out of six analysts tracking the company, four maintain a 'buy' rating, one recommends a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 28.7%.