Schneider Electric Infrastructure Limited — Q3 FY25 earnings call

Call held 11 Feb 2025

Management summary

Schneider Electric Infrastructure delivered a record-breaking Q3 FY25, characterized by its highest-ever quarterly sales and robust EBITDA margins. While order inflow saw a slight seasonal slowdown in Q3 (5.3% growth), the overall 9-month trajectory remains strong with double-digit growth in orders and revenue. Management is pivoting toward high-margin digital services and futuristic segments like Green Steel, Data Centers, and Nuclear power, supported by a brownfield capacity expansion in Baroda.

Highlights

  • Highest ever quarterly sales of ₹857 crores, representing a 15.2% YoY increase.

  • EBITDA margin reached a significant 31.6% for the quarter.

  • 9M FY25 PAT increased by 26.4% to ₹213.3 crores.

  • Order backlog stands at ₹1,086 crores, up 7.3% YoY.

  • Announced capacity expansion at Baroda transformer line from 5,500 MVA to 7,000 MVA with ₹14 crore investment.

  • Exceptional income of ₹17.6 crores recorded due to reversal of interest provisions under Vivad se Vishwas scheme.

  • 9M FY25 order intake reached ₹1,546 crores, a 13.8% YoY growth.

  • Kolkata factory expansion for interruptors is on track to go live in the next few months.

Key financials

2 periods

Headline

  • Revenue
    ₹857 Cr
    YoY +15.2%
  • EBITDA Margin
    31.6%
  • Order Inflow
    ₹442 Cr
    YoY +5.3%
  • Order Book
    ₹1,086 Cr
    YoY +7.3%

9M

  • PAT
    ₹213.3 Cr
    YoY +26.4%
  • Gross Margin
    ₹783.3 Cr
    YoY +26.4%

What they filed

Q1 FY27: revenue up 4.7%, net profit down 70.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue600 857 587 622 650 +8%1,029 +20%590 +1%651 +5%
EBITDA74 140 87 69 84 +14%173 +24%45 −48%34 −51%
Net profit54 111 55 41 52 −4%97 −13%22 −60%12 −71%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Capacity

  • Transformer Capacity Expansion (Baroda) Capacity · FY26 · High confidence 7,000 MVA

    From 5,500 MVA today

    we are thinking and of enhancing our capacity in the transformer line at Baroda... typically trying to take this capacity from 5,500 MVA for transformers to about 7,000 MVA, and investing some money about INR14 crores into this.

    — Udai Singh, MD & CEO

  • Kolkata Plant Commencement Capacity · next few months · High confidence Live
    Very soon, in the next few months.

    — Suparna Bhattacharyya, CFO

Capex

  • Baroda Expansion Investment Capex · FY26 · High confidence ₹14 crores
    investing some money about INR14 crores into this.

    — Udai Singh, MD & CEO

Revenue

  • Order Inflow Recovery Revenue · Q4 FY25 · Medium confidence Pickup
    But based on the pipeline that we have, we are hoping that the next order will pick up -- the next quarter, the orders will pick up. And we shall have a good backlog by the year-end, by the quarter 4 end.

    — Suparna Bhattacharyya, CFO

Risks & concerns

  • CRGO Steel Shortage

    medium

    Analysts raised concerns about global shortages of Cold Rolled Grain Oriented (CRGO) steel; management acknowledged past challenges but noted they are working with the government to eliminate this situation.

    Analyst acknowledged

  • Rising Operating Costs

    medium

    Other expenses rose 35-40%, partly due to team building and capability expansion for future growth.

    Analyst acknowledged

  • Order Inflow Volatility

    low

    Q3 saw a 'lean' period for orders (5.3% growth vs 18% revenue growth); management attributes this to project timing and expects a Q4 rebound.

    Both downplayed

Areas of evasion (1)

  • Specific revenue share for intergroup transactions and segment-wise revenue breakup was requested but not explicitly detailed in the verbal response.

Q&A highlights

3 direct
Order Inflow Slowdown Direct
this was more of a time effect, I would say, because we are in a business where there are multiple project orders given by multiple stakeholders. And we intentionally try to pull up some orders, so that we can make the year more robust.

Explains that the 5.3% Q3 order growth is a timing issue rather than a demand slowdown, with a healthy pipeline ahead.

Asked by Sanjaya Satapathy

Rising 'Other Expenses' Direct
out of this 38%, so almost 18% goes into such directly chargeable provisions and expenses that we incur... we have incurred internally to strengthen the organization in team building, capability building.

Clarifies that expense growth is driven by sales-linked provisions and long-term organizational strengthening rather than structural inefficiency.

Asked by Sanjaya Satapathy

Capital Allocation Priorities Direct
we have announced an investment, and we are looking for major expansion and investments in the years to come, and we will use our cash to fund both the working capital as well as the growth strategies.

Signals a shift from 'stabilization' to 'growth' mode, with internal accruals now funding expansion rather than just debt repayment or survival.

Asked by Aditya Deorah

2 min read 5 chapters

Detailed narrative

Record Financial Performance and Margin Expansion

Schneider Electric Infrastructure reported its highest-ever quarterly sales of ₹857 crores in Q3 FY25, a 15.2% YoY increase. The EBITDA margin was exceptionally strong at 31.6%, driven by a better product mix, material productivity, and volume leverage. For the 9-month period, PAT grew by 26.4% to ₹213.3 crores, even as the company began accounting for full corporate taxes compared to the previous year.

Strategic Pivot to Digital and Services

Management highlighted a significant push into digital services and remote asset monitoring, leveraging their growing installed base. Digital solutions like the EcoStruxure platform and SF6-free secondary distribution are seeing increased adoption in 'engineered' and 'customized' projects. This shift is contributing to margin expansion, as services and transactional pieces typically offer higher profitability than standard equipment sales.

Capacity Expansion to Meet Surging Demand

To capitalize on the robust market outlook, the company is investing ₹14 crores to expand its transformer capacity at the Baroda plant from 5,500 MVA to 7,000 MVA. Additionally, the Kolkata factory expansion for interruptors is nearing completion and is expected to go live in the next few months. These brownfield expansions are viewed as cost-effective ways to scale existing infrastructure.

Emerging Segments: Nuclear, Data Centers, and Green Steel

The company is positioning itself for long-term growth in futuristic sectors. Management noted the government's ambition for 100 GW of nuclear power by 2047, highlighting their capability to supply equipment for Small Modular Reactors (SMRs). They also reported significant wins in the semiconductor space, electrifying one of India's first semiconductor plants, and providing 'green transformers' to the nation's first green steel manufacturer.

Order Inflow and Pipeline Dynamics

While Q3 order growth was a modest 5.3% (₹442 crores), management clarified this was due to project timing and a 'lean' quarter. The 9-month order intake remains healthy at ₹1,546 crores (up 13.8%). The order backlog of ₹1,086 crores provides strong visibility for the coming quarters, with management expressing confidence in a significant order pickup in Q4 FY25.

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