Electrical equipment maker
Hitachi Energy India is considering product price increases to deal with rising metal costs.
In an interview with
CNBC-TV18, N Venu, Managing Director and CEO of the Bengaluru-based company said they are working with customers to raise prices on a case-to-case basis. "But the bulk of our portfolio is also variable prices. So, anyway, it will be shielded to some extent at least..
Hitachi Energy has an order backlog of over ₹7,200 crore.
The company's
January-March net profit grew 124% to ₹114 crore. Revenue also rose by 27% to ₹1,695 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin improved to 10.7% up from 7.1% last year.
Nuvama Institutional Equities has a 'buy' rating on Hitachi Energy with a target price of ₹13,000.
The brokerage firm sees strong near-term growth prospects with several large projects within high-voltage direct current (HVDC) and static compensators (STATCOM).
Additionally, exports, services, and railway projects are expected to be high-growth areas in the medium term.
Venu highlighted the growing demand for HVDC projects in India.
"India used to have one HVDC project every four to five years. Now, we see the market needing at least one HVDC project per year, and we forecast that in the next two to three years, there will be a need for at least two HVDC projects per year."
The company is looking forward to capitalising on the expanding HVDC market and continuing its growth trajectory.
Hitachi Energy has a blended market share of 30% to 40% in railways and its traction transformers power every second Shatabdi and third Rajdhani train.
Nine out of 10 metro stations leverage Hitachi's technology.
Hitachi Energy has a market capitalisation of ₹46,535.08 crore. Its shares have risen 179% over the last year.