HPL Electric and Power grows 9 per cent in 9M on metering and lighting segment

The Central Government’s move to replace conventional meters with smart meters has propelled business for the company.

New Delhi, India

HPL Electric and Power Ltd, an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, announced its financial results for the quarter ended December 31, 2019.

Consolidated Performance Highlights

 Particulars (In Rs Cr)

Q3 FY20

Q3 FY19

YoY %

9M FY20

9M FY19

YoY %

  Revenue from Operations

244.1

259.4

-5.9%

764.4

806.0

-5.2%

  EBITDA

32.6

32.1

1.5%

97.9

92.8

5.5%

  EBITDA Margin %

13.4%

12.4%

98 bps

12.8%

11.5%

130 bps

  Reported PAT

6.8

6.7

1.7%

19.4

20.2

-4.0%

  PAT Margin %

2.8%

2.6%

21 bps

2.5%

2.5%

3 bps

Cash PAT

15.8

15.1

4.7%

47.5

43.6

8.9%

Gautam Seth, Joint 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 optimisation 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  Rs 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 realisations per meter from Q2 FY21 onwards,” Seth stated.

“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 Rs 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,” shared Seth.

The company’s order book reflects its robust business. The current consolidated order book stands at Rs 368.6 crore (net of GST); metering orders of Rs 302.5crore; switchgear orders of Rs 66.3 crore; lighting orders of Rs 56.7 crore; wires & cables orders of Rs 2.7 crore; enquiry base for metering tenders is at a healthy level. Tenders amounting to Rs 2,200 crore (1.75 crore meters) have been floated, or expected to be floated in the near-term.

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