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 June30, 2019.
The performance during the first quarter was marked by double-digit revenue growth in the metering segment (+10% YoY), and steady performance in switchgear revenue(2% YoY)
Lighting and wires & cables revenues remained muted during the quarter
Q1 FY20 EBITDA Margins expanded by 170 bps to 12.2% (10.5% in Q1 FY19) driven by increased revenue contribution from higher margin metering and switchgear business.
EBIT Margins in the Metering Business expanded by 60 bps to 14.1% (13.5% in Q1 FY19) led by superior product mix and strong operating cost control
Mr. Gautam Seth, Joint Managing Director said, “During the quarter, we reported resilient financial performance along with an improvement in operating profitability, despite being faced with weak industry demand and a challenging economic environment. Our metering business continued to post robust growth backed by timely execution of orders.
On the product innovation front, we recently launched new innovative range of products in the lighting segment "The seven wonders" and new" TechnoN MCBs& DBs" in Switchgears. Both these product ranges have received very good dealer response. We also continued our focus on brand building by undertaking various marketing initiatives. Building upon our successful campaign with the Delhi Capitals Team in IPL, we have now tied-up with the “Haryana Steelers Pro Kabbadi Team”. We believe this gives us an effective platform to create strong brand visibility in the Tier 2 & 3 cities and rural areas enabling us to drive aggressive growth in these regions.
Going forward, we expect our lighting and metering segments to see strong growth on a sequential basis in Q2. We are also optimistic of seeing good traction across our business segments in the second half of this year as the economic conditions gradually improve. Further, the company is fully geared up to meet the Govt’s ambitious target of smart meters which can truly be a game changer providing enormous growth potential.
Robust Order Book & Strong Revenue Visibility
Consolidated order book was Rs 508.4cr (Net of GST) as on 9thAugust2019
Metering orders of Rs 486.5cr
Switchgear orders of Rs 10.0cr
Lighting orders of Rs 9.3cr
Wires & Cables orders of Rs 2.6cr
Enquiry base for Metering tenders are at a healthy level, which provides good visibility and positive outlook for the coming quarters