Hitachi Energy stock performance jumps after strong Q3 FY25 earnings and record orders

Hitachi Energy Shares Surge 20% After Impressive Q3 FY25 Earnings

Shares of Hitachi Energy India Limited saw a massive 20% jump on January 30, 2025, after the company reported stellar financial results for the December 2024 quarter. The surge in stock price reflects investor optimism following a significant rise in both profitability and operational performance.

Strong Financial Performance: Net Profit Soars

Hitachi Energy’s Q3 FY25 results demonstrated an outstanding turnaround, with the company reporting a net profit of ₹137 crore, a more than fivefold increase compared to the ₹25 crore reported in the same period last year. This dramatic rise in profit is a testament to the company’s improved operational efficiencies and strong order book.

In addition to the impressive profit growth, Hitachi Energy posted an operational EBITDA of ₹168.9 crore, which translated to a healthy EBITDA margin of 10.1%. The company’s ability to generate higher margins has been a key factor in its recent stock surge, indicating that it is efficiently capitalizing on strong market demand.

Revenue Growth and Strong Order Book

For the October-December 2024 quarter, Hitachi Energy’s revenue rose by 31% year-on-year, reaching ₹1,672.4 crore, driven by a favorable execution mix and improved operational efficiencies. This revenue growth was largely fueled by a significant order from the High-Voltage Direct Current (HVDC) segment, which has become a major contributor to the company’s revenue streams.

The company also reported its highest-ever quarterly order intake of ₹11,594.3 crore, driven by a substantial HVDC order for renewable energy transmission from Gujarat to Maharashtra. This order is significant not only for its size but also for its strategic importance, as it aligns with India’s renewable energy goals.

HVDC Projects and Future Prospects

The HVDC segment, which includes large-scale projects for the transmission of renewable energy, has been a major growth driver for Hitachi Energy. The company’s success in securing large-scale HVDC orders has strengthened its position in the renewable energy sector, which is expected to continue driving demand for the company’s products and services. The strong order intake is expected to sustain Hitachi Energy’s growth in the coming quarters, as it continues to execute on major HVDC and renewable energy transmission projects.

The company also reported significant contributions from its transmission segment, excluding HVDC, as well as from power quality, substation projects, transportation, industries, and data centers. This diversified portfolio has helped the company mitigate risks associated with any single market segment.

Debt-Free Status and Strong Cash Position

Another positive aspect of Hitachi Energy’s performance is its debt-free status as of December 31, 2024. This marks a significant milestone for the company, which has strengthened its balance sheet through successful collections and advances from its HVDC projects. With a solid cash position, the company is well-positioned to continue investing in growth opportunities and executing its large-scale projects without the burden of debt.

Investor Sentiment and Stock Performance

Hitachi Energy’s strong performance has been reflected in its stock price, which hit ₹12,277.50 per share on January 30, 2025, marking a 20% rise. The stock has fluctuated between a 52-week low of ₹5,637 and a high of ₹16,550, with the current surge indicating growing investor confidence in the company’s future prospects. As of now, the company’s market capitalization stands at ₹51,527 crore, a clear indication of its growing importance in the Indian energy sector.

Conclusion: A Bright Future for Hitachi Energy

With its strong order book, improved profitability, and debt-free status, Hitachi Energy is well-positioned to continue its growth trajectory in the coming quarters. The company’s focus on HVDC and renewable energy transmission, along with its diversified portfolio, provides a solid foundation for future success.

As the demand for clean energy and efficient transmission systems continues to rise, Hitachi Energy is likely to remain a key player in the Indian and global energy markets, making it an attractive stock for long-term investors.

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