Hitachi Energy, in a release, said that it has won orders worth Rs.3054.60 crore during the first quarter (Q1: April to June) of FY23. This was over 300 per cent higher than the comparable level in FY22. Compared to the immediately preceding quarter (Q4: January to March of FY22), orders booked in Q1 of FY23 were 192.7 per cent higher.
The order inflow in Q1 of FY23 was dominated by power sector-related orders and included a major HVDC order won from Adani Electricity Mumbai Ltd (AEML) and orders placed by Power Grid Corporation of India Ltd (PGCIL) for 500 MVA 400kV transformers.
Rail orders continued and industrial customers ordered products like digital transformers to improve efficiencies. Service orders included automation of transmission infrastructure, HVDC asset management solutions and spare parts supplies. Products for grid infrastructure and power quality technologies continued to boost exports that contributed more than 20 per cent to the order intake, Hitachi Energy said. Export orders were mainly destined to Uganda, UAE, Azerbaijan, Bhutan and USA.
Service orders included Hitachi Energy’s first modular switchgear monitoring supply order placed by Hitachi, Japan.
Mumbai HVDC Link
The order placed by Adani Electricity Mumbai Ltd is for a 1,000 mw HVDC link connecting Kudus to Mumbai. The 80-km link, including a 50-km underground stretch, will help increase supply of power to Mumbai city by almost 50 per cent with minimal losses, Hitachi Energy said. The underground stretch of the link is expected to save almost 2.3 sqkm of space.
Mumbai is experiencing a rapid increase in electricity consumption, seeing peak demand increasing to 3,850 mw in 2022. Utilities are therefore ramping up to meet rising demand for reliable power supplies with minimum environmental impact.
“The Kudus-Mumbai HVDC order reiterates confidence in our technology expertise and execution capabilities, and supports the country’s commitment to energy transition,” said N. Venu, Managing Director & Chief Executive Officer, Hitachi Energy India Ltd.
Semiconductor shortage
In an investor presentation, Hitachi Energy said that supply constraints, such as semiconductors, could impact revenue in the short term. In the coming quarters, semiconductor demand could exceed supply, and the cost increase could be more than general inflation. Hitachi Energy said that product redesigning so as to reduce dependency on semiconductors could be a mitigation measure.
“Even as we see continued top-line momentum, we face tailwinds from rising commodity costs and supply chain constraints, impacting profitability. We are implementing multiple measures to address this turbulence,” N. Venu observed.
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