Hitachi Energy India net profit falls 33% to Rs 24.7 crore in Q2

New Delhi: Hitachi Energy India on Monday reported a 33 per cent decline in its net profit to Rs 24.7 crore in September quarter compared to a year ago.

The net profit of the company was Rs 37.2 crore in the quarter ended September last year, a BSE filing showed.

Total expenses increased to Rs 1,195.79 crore in the reporting quarter from Rs 1,064.76 crore in the same period a year ago.

Total income rose to Rs 1,228.16 crore in the quarter under review from Rs 1,115 crore in the same period a year ago.

"Energy transition projects are spread across segments, and their multiplier impact is only possible when brought together by a flexible, digital, and secure grid. This quarter, our orders reflect a pick-up toward this mindset," said N Venu, Managing Director and Chief Executive Officer, Hitachi Energy India Ltd.

He stated that while inventory bottlenecks need attention, we have witnessed some easing in the semi-conductor crunch, which has helped recover margin and PAT (profit after tax) or net profit.

The company stated that in the quarter ending September 30, 2023, it received orders worth Rs 1,747.1 crore, up 52 per cent QoQ (quarter on quarter).

Transmission projects from multiple utilities, especially toward the build-up of green energy corridors, led the momentum in Q2FY24, it stated.

The growing order book reaffirms the urgency for rapid energy transition and electrification, it pointed out.

Notable orders include a large contract for High Power (HP) STATCOM to integrate 4GW renewable energy into the National Grid from the upcoming project in Fatehgarh, Rajasthan, it stated.

Orders were strengthened further by data centres, rail, increasing interest in digital services, and deeper penetration of the installed base, it stated.

Exports accounted for 25 per cent of total orders in Q2FY24, it stated, adding that orders were received from across the continents -- transmission orders in Asia, power quality in Europe and US markets, and automation packages in Africa.

As of September 30, 2023, the order backlog stood at Rs 7,578.9 crore – the highest ever - providing revenue visibility for the coming quarters, it stated.

Hitachi Energy is a global technology leader that is advancing a sustainable energy future for all.