Hitachi Energy India tumbled 4.85% to Rs 2,956.15 after the company's net profit declined 92.6% to Rs 4.58 crore in Q3 FY23 as compared with Rs 61.66 crore in Q3 FY22.
Net sales declined 8.9% to Rs 997.36 crore in Q3 FY23 as against Rs 1094.54 crore in Q3 FY22. Net sales declined mainly due to supply chain constraints, led by shortage of chips and electronics. The company focused on improving liquidity through cash management, to help capitalize on the continued market investment. This resulted in solid cash generation in the quarter.Profit before exceptional items and tax in Q3 FY23 stood at Rs 13.38 crore, decline 83.9% from 83.35 crore in Q3 FY22.
Operational EBITDA declined 55.3% to Rs 49.9 crore in Q3 FY23 as compared with 111.7 crore in Q3 FY22. EBITDA margin stood at 4.8% in Q3 FY23 as against 9.8% in Q3 FY22.
During the quarter, total orders received rose 31.3% to Rs 1,222.1 crore as compared with Rs 931 crore in corresponding quarter last year. Driven by orders for transformers for renewable energy evacuation and interstate power transmission projects, high-voltage products to a state-backed greenfield refinery and CoreSense technology to help a steel major in the digital transformation of their power assets. Transportation orders continued on the back of 100% electrification and hi-speed railway initiatives.
Exports contributed over 20% of total orders from established markets in Middle East, Bhutan and new inroads in South Africa, Central Asia and Europe.
As of 31 December 2022, the order backlog stood at Rs 7,231.3 crore.
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On the outlook front, the pressure on supply chains, including chips and electronics should ease with manufacturing capacities gradually clearing out backlog over the coming quarters. Against this backdrop, we expect the energy transition momentum to continue driving growth of energy network infrastructure such as flexible grids, driving demand in the medium to long term.
N Venu, managing director and chief executive officer, Hitachi Energy India said, Our focused approach to advancing a sustainable energy future backed by our commitment towards supporting the customers to integrate renewables at scale and embrace digital transformation has been helping us build a robust order pipeline, In the short term, we will continue our efforts to manage the margin impact of global macro-economic forces and supply chain constraints.
Hitachi Energy India will serve utility and industry customers, with the complete range of engineering, products, solutions and services in areas of power technology. The company has extensive installed base for manufacturing and a countrywide marketing and service presence. Besides catering to Indian domestic market, the company is also playing an increasing role in the global market.
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