Home Quarter Results HPL Electric and Power Ltd reports Q3 Cash PAT Grew by 9% YoY to ₹47.5 Crores
HPL Electric and Power Ltd reports Q3 Cash PAT Grew by 9% YoY to ₹47.5 Crores

HPL Electric and Power Ltd reports Q3 Cash PAT Grew by 9% YoY to ₹47.5 Crores

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9M FY20 EBITDA Margins Expanded by 130 bps to 12.8% 

New Delhi, India: HPL Electric and Power Ltd (referred to as the “Company”; NSE: Symbol; HPL, BSE: Scrip Code;540136),an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, announced its financial results for the quarter ended December31, 2019.

Consolidated Performance Highlights

  • Metering business revenues grew by 5% YoY in 9M FY20. 
  • Lighting business continued to witness good growth momentum despite sectoral headwinds 
  • Contribution of the switchgear segment was impacted by the overall slowdown in the real estate &macro economy 
  • 9M FY20 EBITDA Margins expanded by 130 bps YoY to 12.8%driven by higher revenue contribution from the high margin metering business (57% in 9M FY20 Vs 52% in 9M FY19) and efficient cost management

Mr. Gautam SethJoint Managing Director, said“We delivered modest performance during 9M FY20 led by growth in the metering and lighting segment. Increased share from the metering business supported by cost optimization boosted our operating profitability. 

In-line with the Central Government’s initiative of installing 25 crore prepaid smart meters within the next three years, various State Electricity Boards (SEBs) have begun gearing themselves to replace conventional meters with smart meters. This renewed thrust by the Government is a major step in the right direction and provides a huge cumulative opportunity size of ~ ₹ 600 to ₹ 900 billion (installation of 25-30 crore smart meters) for prominent meter suppliers like HPL. We expect to see the positive impact of this in the form of higher revenues and improved realizations per meter from Q2 FY21 onwards.

Our lighting business performed well during this quarter and we expect this segment to continue its robust performance going forward as well. Moreover, the Government’s plan of spending ~ ₹ 100 lakh crore towards infrastructure and allied industries over the next five years as announced in the Union Budget 2020 is expected to support demand for HPL’s switchgears and other B2C products in the medium to long term. We believe that HPL is poised for its next leg of growth and create sustainable value for its stakeholders. 

Robust Order Book & Strong Revenue Visibility

Consolidated current order book stands at 368.6crores (net of GST)

  • Metering orders of 302.5crores
  • Switchgear orders of 66.3 crores
  • Lighting orders of 56.7 crores
  • Wires & Cables orders of 2.7 crores
  • Enquiry base for Metering tenders is at a healthy level. Tenders amounting to ~ ₹ 2,200 crores (~1.75 crore meters) have been floated or expected to be floated in the near-term

About HPL Electric and Power Ltd

HPL is an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, including, metering solutions, switchgears, lighting equipment and wires and cables, catering to consumer and institutional customers in the electrical equipment industry. HPL had the largest market share in the electricity energy meters market in India, with one of the widest portfolios of meters in India and the fifth largest market share for LED lamps during the corresponding period (Source: Frost & Sullivan Report, February 2016). HPL’s manufacturing capabilities are supported by a large sales and distribution network with a pan-India presence. HPL currently manufactures and sells its products under the umbrella brand ‘HPL’, which has been registered in India since 1975.

Source: conceptpr
Anand Gupta Editor - EQ Int'l Media Network

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