Hitachi Energy Bets On These Segments To Drive Growth In Next Three Years

The renewable energy segment promises to be a key growth driver for Hitachi Energy India Ltd. over the next three years, according to its Managing Director and Chief Executive Officer N Venu.

The top executive told NDTV Profit that the government’s target to add another 550 gigawatt of renewable energy capacity by 2030 offers a huge potential for growth. 

Hitachi Energy India reported stellar financial numbers in the second quarter of the current fiscal. The company's net profit jumped 111.74% to Rs 52.3 crore in the September 2024 quarter against last fiscal's similar period that stood at Rs 24.7 crore.

Revenues for the July–September quarter grew 26.5% YoY to Rs 1,553.8 crore from Rs 1,228.2 crore a year ago, driven mainly by favourable and good order execution during the quarter under review. 

The company's orders at the end of Q2 stood at Rs 1,952 crore, a rise of 11.7% YoY from Rs 1,747.1 crore in July–September of the previous fiscal. The renewable energy segment of Hitachi Energy witnessed a 135% YoY growth in Q2.

“India is a country that has set an ambitious target to add 500 gigawatt to its existing capacity by 2030. This means we need to do more than two to three times more than what we have been doing as a country as a whole. So that will have a huge potential opportunity pipeline for all the stakeholders, including Hitachi Energy. And that's where we are doing extremely well,” he said. 

Further, Venu predicted strong growth in the transmission segment as well due to the government's push for deploying 500 GW of interstate transmission systems by 2030.

“The third one where I see a huge potential is the data centre market,” Venu said. 

According to him, over the next three years, the data centre industry could require capex of more than Rs 60,000 crore. Hitachi Energy’s data centre segment has posted a stellar 346% YoY growth in the September quarter of the current fiscal.

“So if I want to pick up three or four things—it is renewable, transmission, data centre, and followed by the industries,” he said.

Venu revealed that the company is in the process of bidding for three big-ticket HVDC projects which would come with a 40-year exhibition cycle.

Shares of Hitachi Energy India Ltd. slipped 7.9% on Wednesday to touch an intraday low of Rs 13,125 apiece on the NSE. The stock, however, recovered some losses to trade 3.97% lower at Rs 13,687.35 apiece on the NSE at 2:54 pm.

Shares of the company were trading 0.78% higher at Rs 13,803.2 apiece on the NSE on Thursday against the benchmark Nifty 50's decline of 0.32%.