New Delhi: HPL Electric and Power Ltd (known as the “Company”; NSE Symbol:HPL, BSE Scrip Code:540136),a longtime electrical gear manufacturing firm in India, manufacturing a various portfolio of electrical gear, announcedits monetary outcomes for the quarter ended December31st, 2020.
Consolidated Performance Highlights
Q3FY21 efficiency was considerably higher sequentially led by the strong progress in ‘Consumer Segment’
Consumersegment (excluding meters) continued to develop at a sturdy tempo of 25% YoY to Rs 135 Crores. The progress was primarily pushed by the festive season, pick-up within the financial exercise and improved client sentiment. The income share of the Consumer phase stood at 61% throughout the Q3FY21 as in comparison with 44% in Q3FY20.
The metering enterprise income witnessed a progress of 17% in Q3FY21 in comparison with Q2FY21. However, the efficiency throughout the quarter remained subdued as inspections remained decrease on account of Covid-19 associated disruptions. As a end result, metering income has been deferred to the forthcoming quarters. Meter dispatches are anticipated to regularly pick-up fromQ4FY21.
Rationalisation of capital bills and overheads led to an enchancment in profitability margins.
Despite a rise within the uncooked materials costs throughout the quarter, rationalisation of overhead bills helped the corporate to report an EBITDA of ₹ 34.7 crores (EBITDA Margin of 14.2%) in Q3 FY21, whereas Cash PAT elevated by 24% YoY to ₹ 19.6 crores.
Mr. Gautam Seth, Joint Managing Director, mentioned, “The efficiency throughout the Q3FY21 was but once more underpinned by the strong efficiency of the buyer (B2C) phase, regardless of the subdued efficiency within the metering phase. This has helped us to get again to the pre-covid degree of income and EBITDA. The strong progress within the client phase was pushed by wholesome double-digit progress within the ‘Switchgear’, ‘Lighting’ and ‘Wires and Cables’ classes, which grew by 29%, 18% & 45% YoY, respectively.
The metering phase fared properly throughout the quarter sequentially, nonetheless, the general efficiency remained subdued as dispatches have been deferred to forthcoming quarters because of the pandemic. Even although meter dispatches have remained sluggish in 9M FY21, we predict dispatches to regularly pick-up tempo from This fall FY21 onwards. At current we’ve a sturdy order guide of Rs 354 Crores boosted by sensible meter orders, which comprise over a 3rd of the overall meter order guide. This ensures us income visibility for the near-term. Further trying forward, we’re optimistic concerning the long-term progress trajectory of the Consumer phase led by a pick-up within the financial exercise, improved client sentiments and elevated authorities funding. This is ably supported by our enhanced supplier and retail community, efficient advertising methods and product improvement efforts.
Our varied price rationalisation initiatives have helped us to spice up the EBITDA margins.
Looking past the short-term challenges in meter phase, we’re bullish concerning the alternatives within the sensible metering area as each the private and non-private energy distribution corporations more and more shift focus in direction of putting in sensible meters to interchange standard meters. We are very a lot targeted on enhancing our sensible meter technological base and develop into the market chief within the phase. We predict a large- scale requirement for sensible metering options within the coming years and are totally succesful and able to meet the requirement of the trade with our best-in-class metering options. Overall, the corporate is assured of overcoming near-term challenges and create sustainable worth for its stakeholder.”
Robust Order Book & Strong Revenue Visibility
Consolidated present order guide stands at ₹ 354.4crores (web of GST)
o Metering orders of ₹ 250.2crores
o Switchgear orders of ₹ 15.9 crores
o Lighting orders of ₹ 85.5 crores
o Wires & Cables orders of ₹ 2.9 crores
o Enquiry base for Metering tenders is at a wholesome degree.Tenders amounting to ₹ ~2500 crores have been floated or anticipated to be floated within the near-term
About HPL Electric and Power Ltd
HPL is a longtime electrical gear manufacturing firm in India, manufacturing a various portfolio of electrical gear, together with, metering options, switchgear, lighting gear and wires and cables, catering to client and institutional clients within the electrical gear trade. HPL had the most important market share within the electrical energy vitality meters market in India, with one of many widest portfolios of meters in India and the fifth largest market share for LED lamps throughout the corresponding interval (Source: Frost & Sullivan Report, February 2016). HPL’s manufacturing capabilities are supported by a big gross sales and distribution community with a pan-India presence. HPL at the moment manufactures and sells its merchandise underneath the umbrella model ‘HPL’, which has been registered in India since 1975.
