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Schneider Electric Infrastructure Ltd (SEIL) witnessed a strong quarter continuing with its journey of consistent performance. It remained better than anticipated on all fronts with revenues/EBITDA and PAT growing at 33.3%/71%/29.4% including exceptional items in Q1FY23 while margins at 10% improving 220bps YoY on better product mix and normalizing RM cost. SEIL continued its momentum and remained in the positive territory for the seventh consecutive quarter with consistent profitable growth in last seven quarters. The order inflow during the quarter remained strong and notched up higher by 21.4%. Management indicated that there has been good momentum in orders across all segments including its emerging segments in Industry & Building, Cloud & service provider. The overall order backlog too improved and stands at ?11.2bn providing healthy revenue visibility.

Management remains positive on the business outlook across its traditional (Power & Grid, Metals, Minerals & Mining and Mobility) and emerging segments (E-Mobility, Industry & Building ,cloud & service provider and renewables) providing more avenues for digitization and expects momentum to continue in tandem with high frequency data like IIP, GFCF which reflects on the overall business it operates in. SEIL has been receiving breakthrough orders across its Ecostruxure platform be it newer initiatives like Ecostruxure Transformer Expert which is all in one easy to deploy disruptive IoT sensor & software analytics to monitor the health of transformers and taking corrective measures well in time to improve efficiency, avoid revenue loss due to unplanned downtime and lastly less dependency on human resources. Initiatives like this substantiates the fact that company also remains focused on its service business and providing native connectivity to bridge Capex & Opex to unlock service growth recurring business in the long run.

SEIL on its way forward plans to 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, FY23 and Q1FY24 wherein execution has remained strong and expects it to continue with strong order book and pipeline ahead.

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