Transmission companies in India are set to expand significantly, driven by increasing electricity demand and renewable energy integration. Investments in smart grid technologies and HVDC systems will improve efficiency and reliability. Regulatory support and public-private partnerships will further bolster growth, positioning these companies as crucial players in India’s energy transition. In this article, we will look at Hitachi Energy India vs GE Vernova T&D India, their financials, and future plans.
Company Overview
Hitachi Energy India
Hitachi Energy India Limited was established in 1949. They are into sustainable energy solutions with 19 factories focusing on high-voltage technology and digital transformation to support India’s energy transition towards carbon neutrality. Their business model focuses on collaboration with stakeholders to innovate in areas like HVDC technology, smart grids, and renewable energy integration.
GE Vernova T&D India
GE Vernova T&D India Limited was established in 1957. They specialize in power transmission and distribution solutions. They offer a range of products which includes power transformers, circuit breakers, and gas-insulated switchgears, catering to both medium and ultra-high voltage applications. Their business model focuses on providing integrated utility solutions, improving grid connectivity and efficiency through advanced technologies like HVDC and FACTS.
Price Movement
Hitachi Energy India
With a market capitalization of Rs. 54,036 Crores, the shares of Hitachi Energy India was trading at Rs. 12,750 on Friday which was down by 2.88 percent from the previous closing price of Rs. 13,128 per share.
GE Vernova T&D India
With a market capitalization of Rs. 48,546 Crores, the shares of GE Vernova T&D India were trading at Rs. 1,896 on Friday which was down by 1.58 percent from the previous closing price of Rs. 1,926.45 per share.
Shareholding Pattern
Hitachi Energy India
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 75 percent in Hitachi Energy India, Foreign Institutional Investors (FII) holding around 5.11 percent, Domestic Institutional Investors holding around 9 percent, and public holdings standing at 10.89 percent.
GE Vernova T&D India
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 59.38 percent in GE Vernova T&D India, Foreign Institutional Investors (FII) holding around
6.82 percent, Domestic Institutional Investors holding around 25.61 percent and public holdings standing at 8.19 percent.
Financials Comparison – Q2FY25
Hitachi Energy India’s revenue from operations stood at Rs. 5,237 crore in FY24 compared to GE Vernova’s Rs. 3,168 crore. The Net profit of Hitachi stood at Rs. 164 crore lower than GE Vernova’s Rs. 181 crore showcasing GE Vernova’s higher net profit margin in comparison to Hitachi Energy India.
The RoE in FY24 of Hitachi Energy India stood at 12.72 percent as compared to GE Vernova’s 15.64 percent. In terms of debt-to-equity ratio, Hitachi Energy India’s ratio was 0.21 times that of GE Vernova’s 0.14. Despite lower revenues compared to Hitachi Energy India, GE Vernova fares better in terms of financial strength.
Recent Future Plans
Hitachi Energy India
The company remains committed to its 2030 strategy while focusing on cementing leadership in core segments like renewable energy, transmission, utilities, industries, data centers, and railways. They plan to strengthen its capabilities through growth from service, export, and digital initiatives. Hitachi to leverage their substantial order backlog to drive revenue growth and improve margins.
The company is to continue investing in existing capabilities by upskilling and cross-skilling its workforce to address current and future energy needs. They are particularly interested in expanding their presence in high-growth segments like data centers, which saw a 346 percent year-on-year, and renewables, which grew by 135 percent.
Hitachi Energy is exploring battery energy storage opportunities while leveraging its global expertise and the recent acquisition of EKS, a specialized battery storage company. They plan to offer modular and scalable battery storage solutions as the market matures.
Further, Manufacturing capacity expansion is also on their agenda, with ongoing work to improve transformer and interrupter facilities in Maneja. The company will maintain its focus on safety.
GE Vernova T&D India
The company has outlined its plans aimed at capitalizing on the opportunities within India’s power sector. They intend to increase its focus on energy transition, integrating renewable energy sources into the grid while modernizing infrastructure.
Additionally, The company plans to invest approximately $8 to $10 million over the next 12 months, primarily targeting upgrades to its facilities and capacity expansion. A significant portion of this capex will improve their transformer production capabilities aligning with demand for high-voltage direct current (HVDC) transformers and alternating current (AC) transformers.
The company’s order backlog, which has reached a record Rs. 9,840 crore as of September 2024 provides a foundation for revenue generation over the coming years.
Conclusion
Overall, both companies hold significant future plans, which are in the power sector and can significantly benefit from energy demand supported by the economic growth. The shift to new emerging technologies can further provide opportunities for these companies to prosper.
Written by – Santosh
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