Shares of a mid-cap energy company specializing in sustainable solutions and digital transformation surged nearly 4% after it revealed plans to invest ₹2,000 crore in capacity expansion, portfolio growth, and talent development, supporting its sustainable energy initiatives.

Share Price Movement
In Monday's session, Hitachi Energy India Ltd's stock hit an intra-day high of ₹14,525.00, marking a 4.2% rise from its opening price of ₹13,941.15. However, the share has since pulled back and is currently trading at ₹13,650.05.

The Announcement
Hitachi Energy India has outlined an investment of ₹2,000 crore over the next four to five years, contingent on sustained market trends, as India moves towards becoming the world’s third-largest economy.

The key areas of focus include significant expansion of its large power transformers factory, enhancements to its specialized transformer testing capabilities, and the relocation of its bushings factory—all part of its strategy to meet the country’s increasing energy needs and support critical transmission projects.

Additionally, the capacity of its traction transformers factory will be increased to aid the modernization of India’s railway network.

Hitachi Energy also plans to grow its network control solutions and develop localized products such as Grid eXpand and Grid eMotion. The company will introduce its first medium-voltage offering, REF650, to the Indian market and is committed to nurturing its supplier base for both domestic and global markets.

Management Commentary
N Venu, Managing Director and CEO of Hitachi Energy India, stated, “Our innovative technologies and solutions aim to create a sustainable future for today’s and future generations. These investments anticipate India’s growing energy requirements and help accelerate the transition to clean energy. This also aligns with our vision of 'Make in India' for both domestic and global markets.”

Recent Developments
As part of its 75th-anniversary celebration, Energy and Digital World 75 (EDW75) will be held in New Delhi on October 7-8, 2024. The event will bring together over 2,000 participants, including policymakers and industry experts.

Hitachi Energy will showcase its SF6-free 420-kilovolt gas-insulated switchgear from the EconiQ™ portfolio, designed to reduce greenhouse gas emissions. The company will also launch the Grid-eMotion® portfolio to enhance electric vehicle charging infrastructure and introduce the Grid-enSure™ portfolio to boost grid flexibility and resilience. Additionally, the REF650 medium-voltage protection and control relay will be unveiled.

Financial Performance
In Q1 FY25, the company posted net sales of ₹1,327 crore, a 28% increase from ₹1,040 crore in Q1 FY24. Net profits saw a staggering 500% growth, rising to ₹10 crore from ₹2 crore in the same period last year.

Company Overview
Hitachi Energy India Ltd is a leading player in the energy sector, offering innovative solutions for utilities, industries, and infrastructure. The company is dedicated to promoting a sustainable energy future, providing a wide range of products and services that enhance power technology and drive the transition towards carbon neutrality.