IGI Logo

Schneider Electric Infrastructure Ltd (SEIL) witnessed a good quarter with highest ever revenues and profit in FY23 since inception. There was a positive surprise on the margins both for quarter as well as for FY23. SEIL continued its momentum and remained in the positive territory for the Sixth consecutive quarter with consistent profitable growth in all six quarters. The order inflow during the quarter and for the full year too notched up higher at 10.6% and 10.3%. Management indicated that there has been good momentum in orders across all segments including its emerging segments. The overall order backlog improved 15% YoY for FY23 providing healthy revenue visibility. Diversification is bearing fruits as Industry & Building is growing by 40% with OB and Cloud & Service Provider growing by >150% YoY.

Management remains positive on the business outlook across its traditional (Power & Grid, Metals, Minerals & mining and Transportation) and emerging segments (E-Mobility, Industry & Building ,cloud & service provider and renewables) providing more avenues for digitization and expects momentum to continue as core data improves which reflects on the overall business it operates in. The company also remains focused on its service business and providing native connectivity to bridge Capex & Opex to unlock service growth and recurring business ahead. In its emerging segments like Industry & Building there has been traction in energy Storage, specialty Chemicals, fertilizers industry, Defense and Industrial Expansion in Food & Beverage where SEIL expects opportunities. Further on Cloud & Service Provider opportunities across increasing cloud adoption supported by 5G and SEIL on its way forward plans 1) Strategic tie ups with OEMs and major contractors (EPCs) 2) Provide complete digital & cyber-secure solutions. Overall strategic levers which SEIL plans to take forward are 1) Accelerated Partner Growth (Distributor & Panel Builder) 2) provide more digital services 3) Rapid growth in emerging segments (Industry & Building, Cloud & Service Provider). SEIL remains well positioned across its core segments and adequate digitalization opportunities with positive outlook ahead. Further, company’s performance has been consistent for FY22 and FY23 wherein execution has remained strong after a long hiatus and expects it to continue with strong order book and pipeline ahead.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at www.lkpsec.com/#foo

SEBI Registration number is INM000002483

Above views are of the author and not of the website kindly read disclaimer