Hitachi Energy India Ltd (formerly ABB Power Products and Systems India Ltd.) was established in 2019 as a Joint Venture between Hitachi and ABB’s Power Grids, serving utility and industry customers with a comprehensive suite of engineering, products, solutions, and services in Power Technology.
The company operates across multiple business lines, including grid automation, grid integration, high voltage products, and transformers, Hitachi Energy India offers a diverse range of products, systems, software, and services across the entire power value chain.
Hitachi Energy India Specializing in the manufacturing of transformers and large-scale power transmitters, Hitachi Energy India’s shares reached a 52-week high price of ₹9,895.55 per share on April 30, 2024.
Shares reached a 52-week high price after Hitachi Energy announced its intention to establish additional global capability centers (GCCs) in India. To strengthen its local operations in response to the escalating energy demand and the government’s focus on expanding renewable energy generation, as reported by Reuters.
In 2022, Hitachi Energy India secured orders worth over Rs 160 crore for its key electric components, contributing to the electrification efforts of Indian Railways.
On a year-on-year basis, operational revenue showed a significant increase of 23%, surging from ₹1,034 crore in Q3FY23 to ₹1,274 crore in Q3FY24. Additionally, net profit saw a remarkable 360% rise, jumping from ₹ 5 crore to ₹ 23 crore.
In the past month, the shares have gained 39%.Over the last six months, the company’s shares have yielded a solid return of 112%, followed by an impressive 175% over the course of the past twelve months.
In the third quarter, Hitachi received major orders worth ₹ 12.4 billion (bn), focusing on solar, wind energy, data centers, and transmission. As of December 31, 2023, the company’s order backlog stood at ₹7,552.3 crore, providing revenue visibility for the coming quarters.
Recently, Venu Nuguri, the managing director and CEO of Hitachi Energy’s India unit, disclosed plans to potentially establish GCCs in Hyderabad and Pune within the next six months to a year.
The new GCC, designed as a cost-effective offshore facility, will operate in conjunction with Hitachi Energy India. However, it will function as a distinct entity under Hitachi Energy in Switzerland, as per company management.
Hitachi Energy specializes in manufacturing transformers and large-scale power transmitters. The company is looking to expand its local operations in India by opening more global capability centers, amid the country’s growing energy demand and a push to scale up renewable energy generation.
Currently, Hitachi Energy is considering Hyderabad and Pune for these capability centers. The parent company views India as a high-growth market, manufacturing an extensive range of products locally for the Indian market and exporting to group entities globally.
During the quarter, the company’s export orders increased by more than 60 percent year-over-year, driven by transformers and high-voltage products, reaffirming its ‘make in India for India and the world’ approach. Transformer orders came from Europe and African markets, while demand for power quality solutions originated from South and Central America, Africa, the US, and Europe.
The company’s management has frequently emphasized the importance of supporting entities globally in managing semiconductor shortages. Hitachi Energy India Ltd is actively engaged in the semiconductor business, with a particular focus on advancing its semiconductor technology to enhance competitiveness and capacity.
The company has reached a significant milestone by introducing the first 300 mm wafer for IGBT (Insulated Gate Bipolar Transistor) power semiconductor devices.
On Tuesday, Hitachi Energy India Ltd shares closed at ₹9,579 per share, up 10.53 % on the National Stock Exchange. The company has a market capitalization of ₹40,596 crores.
Written by Omkar Chitnis
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