Release Date: August 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Schneider Electric Infrastructure Ltd (BOM:534139) reported a strong order growth of 42.1% compared to the same period last year, indicating robust demand for its products and services.
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The company has a significant backlog that is 25% higher than the previous year, ensuring future revenue streams.
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Schneider Electric Infrastructure Ltd (BOM:534139) is strategically positioned to benefit from India’s growing focus on green energy, with a substantial portion of new orders coming from renewable energy projects.
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The company is actively engaging with policymakers and stakeholders to influence and adapt to emerging market trends, particularly in digital and sustainable infrastructure.
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Schneider Electric Infrastructure Ltd (BOM:534139) is investing in capacity expansion to meet future market demands, with all projects progressing as planned.
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The company’s gross margins decreased by 1.5% compared to the previous year, attributed to the absence of exceptional credits that were present in the prior period.
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Sales growth was moderate at 4.8%, partly due to project delays and spillovers into the next quarter.
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EBITDA margin decreased by 2.4 percentage points, reflecting challenges in maintaining profitability amidst rising costs.
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Employee costs increased by 11.8%, driven by inflation, salary hikes, and additional headcount, impacting overall profitability.
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The company faces competitive pressures in the industry, with many players expanding capacities, which could impact future margins.
Q: Can you provide more specifics on the order wins this quarter and the segments driving growth? Also, why have gross margins been lower this quarter? A: (Unidentified_3, Managing Director and CEO) The lower margins are a timing issue, not a long-term concern. We are confident in meeting our full-year margin and profitability targets. The order wins are spread across various segments, and while power and grid remain our core business, contributing 40-45% of our revenue, other segments like data centers and energy are also contributing to growth. However, these segments can vary quarter to quarter.
Q: What caused the moderate sales growth this quarter, and will the spillovers be captured in the next quarters? A: (Unidentified_3, Managing Director and CEO) The 5% sales growth was due to project delays that shifted some sales into Q2. This is not a concern as these will be captured in subsequent quarters. We maintain our full-year guidance, supported by a strong 26% growth in order backlog.