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, announces their financial results for the quarter ended December 31, 2017.
Commenting on the results Gautam Seth, Joint Managing Director stated, “We recorded strong revenue growth and higher profitability during the third quarter. The growth was driven by robust performance in metering and switchgear segments. Metering segment grew by 37% QoQ backed by strong execution of orders during the quarter. Switchgear segment grew by 33% QoQ on the back of renewed management focus and higher trade business. Lighting sales declined on QoQ basis on a larger base of Q2 which has seen preponement of festive season sales to September. However, the YoY growth for lighting has been 12%. Wires & Cables sales improved due to renewed traction in the trade business. Margins were largely stable across segments except for metering segment margin which declined due to rise in price of plastics. We witnessed improved capacity utilization levels across all business segments.
Added, “Positive business outlook led to a steady flow of new orders across all segments resulting in healthy current orderbook of Rs. 371.9 cr. This provides us good revenue visibility for the coming quarters and gives us confidence of delivering an improved performance in H2 compared to H1 of this financial year. Renewed traction in metering orders and reduction in GST rate applicable to switchgears and wires &cables, will fuel the growth momentum. Further, the newly launched ‘Saubhagya’ scheme, which aims at electrifying households, will create substantial demand for meters and switch-gear solutions. HPL’s cutting edge innovation, manufacturing and R&D prowess should help us to capitalize on these growth opportunities in the near term.”
- Consolidated order book was Rs 371.9 cr as on 9th February 2018
Metering orders of Rs 307.5
Lighting orders of Rs 24.5 cr
Switchgear orders of Rs 26.7 cr
Wires & Cables orders of Rs 13.1 cr
- Metering orderbook remains at comfortable level despite strong execution of orders in Q2 and Q3 of FY18. This provides good revenue visibility for coming two quarters.
- Currently, there are additional tenders worth Rs 3,500 – 4,000 cr under evaluation by various utilities. Further, there is a good opportunity in smart prepaid meters as utilities are focussing on improved measurement and collection efficiency.
- Metering & Switchgear segments are set to benefit from the ‘Saubhagya’ scheme and ‘Affordable Housing’ scheme of Govt. which will lead to increased demand for smart and prepaid meters and switchgears.
- Wire & Cables segment is set to see strong traction over coming two quarters driven by speciality cables order.
- The recent reduction in GST rate from 28% to 18% on switch-gear and wires & cables sales is further expected to drive growth in these segments.