Shares of this mid-cap energy sector stock, which specializes in sustainable solutions and digital transformation, surged nearly 4 percent following the announcement of plans to invest Rs.2,000 crore in expanding capacity, portfolio, and talent base to advance sustainable energy.
Share Price Movement
In Monday’s trading session, the share price of Hitachi Energy India Ltd reached an intra-day high of Rs.14,525.00 per share, rising 4.2 percent from its opening price of Rs.13,941.15 apiece. The share has retreated since then and currently trading at Rs.13,650.05 per share.
What happened
Hitachi Energy India Limited plans to invest approximately Rs.2,000 crore over the next four to five years, contingent on sustained underlying trends, as India progresses toward becoming the world’s third-largest economy.
Key investment highlights include significant capacity expansion of the large power transformers factory, upgraded testing capabilities for specialty transformers, and the relocation of the bushings factory, all aimed at advancing the country’s transmission projects to meet growing energy demands.
The capacity of the traction transformers factory will also increase to support the modernization of the Indian railway network.
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Additionally, Hitachi Energy plans to expand its network control solutions and develop localized products like Grid eXpand and Grid eMotion. The company will introduce its first medium voltage offering, REF650, to the Indian market while focusing on nurturing the supplier base in India for domestic and global markets.
Management Commentary
“Through innovative technologies and solutions, Hitachi Energy seeks to create a world suitable for today’s generations and those to come. These investments anticipate India’s future energy requirement to accelerate new energy transition and sustainable electrification. It further strengthens our vision of make in India for India and the rest of the world,” said N Venu, Managing Director and CEO, of Hitachi Energy India.
Recent Developments
Energy and Digital World 75 (EDW75), celebrating 75 years of Hitachi Energy in India, will take place on October 7-8, 2024, in New Delhi, with participation from over 2,000 attendees, including policymakers and industry experts.
During the event, Hitachi Energy will showcase its SF6-free 420-kilovolt gas-insulated switchgear from the EconiQ™ portfolio, which aims to reduce greenhouse gas emissions.
The company will also launch the Grid-eMotion® portfolio to enhance electric vehicle charging infrastructure. Additionally, the Grid-enSure™ portfolio will be introduced to improve grid flexibility and resilience, along with REF650, a medium-voltage protection and control relay.
Financial Performance
In its latest financial update, the company announced net sales of Rs.1,327 crore for Q1 FY25, reflecting a 28 percent increase from Rs.1,040 crore in Q1 FY24. Furthermore, net profits skyrocketed 500 percent to Rs.10 crore in Q1 FY25, compared to Rs.2 crore in Q1 FY24.
Company Profile
Hitachi Energy India Ltd is a prominent player in the energy sector, focusing on innovative solutions for utilities, industries, and infrastructure. The company is committed to advancing a sustainable energy future, offering a comprehensive range of products and services that enhance power technology and facilitate the transition to carbon neutrality.
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Written by – Siddesh S Raskar
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