HPL Electric and Power Ltd, a multi-product electric equipment company, has reported strong performance in Q4 FY21 led by robust growth in its metering and consumer segment (B2C). The metering business has witnessed an improved performance in Q4 FY21 than the previous three quarters due to increased inspections and dispatches.

The metering business clocked the revenue of Rs 142 cr in Q4 FY21, thereby registering a growth of 93 per cent year-on-year and 29 per cent quarter-on-quarter. The company also reported that the consumer segment (including non-utility meters) witnessed strong traction and posted a robust 20 per cent year-on-year growth in revenues to Rs 166 cr in Q4 FY21.

During the period, the lighting segment revenue grew by 31 per cent year-on-year and 37 per cent quarter-on-quarter to Rs 89.2 cr in Q4 FY21. The wires and cables segment revenue grew by 99 per cent year-on-year and 31 per cent quarter-on-quarter to Rs 26.3 cr in Q4 FY21. The growth in the wires and cable segment was also aided by an increase in copper prices. The switchgear segment revenue stood at Rs 50.8 cr in Q4 FY21.

HPL reported that rationalisation of employee expenses and overheads helped the company to report an EBITDA of Rs 44 cr (EBITDA margin of 14.2 per cent) in Q4 FY21, while Cash PAT grew exponentially by 117 per cent year-on-year to Rs 26 cr. Additionally, exports grew at a robust pace of 174 per year-on-year in Q4 FY21 and 69 per year-on-year in FY21, respectively.

Gautam Seth, Joint Managing Director, said, “The performance during the Q4 FY21 was attributed by the robust performance of both the metering (B2B) and the consumer (B2C) segment thereby resulting in highest ever quarterly revenue during the last eight quarters at Rs 308 cr. The metering segment improved performance was accredited to an increase in inspections and dispatches.”

Currently, HPL has a strong order book of Rs 704 cr ensuring revenue visibility for the current year despite the lockdown in Q1FY22 which have caused few disruptions. “We are extremely delighted to share that we have received approval and production clearance from a leading private distribution company for the implementation of 4G and 5G compatible narrow band-internet of things (NB-IoT) based smart meters in various parts of Delhi,” Seth told.

The robust growth in the consumer segment was driven by healthy double-digit growth in the lighting and wires and cables categories, which surged by 31 per cent & 99 per cent YoY, respectively. Seth explained, “Additionally, the recent order wins of over Rs 372 cr for switchgear, wires and other related accessories enhancing our position as one of the leading electrical equipment manufacturers of the country. We have a diversified portfolio of electrical equipment catering to various needs of the market and are confident about the long-term growth trajectory of the consumer segment fuelled by a pick-up in the economic activity, improved consumer sentiments and increased government funding.”

Currently, the company’s business caters to 45 countries for exports. Sharing information about how HPL stands out in the exports, Seth shared, “HPL’s testing lab for LED lighting also has been certified by National Accreditation Board for Testing and Calibration Laboratories (NABL) for independent testing of LED lighting. Our LV switchgear testing laboratory in Jabli, Himachal Pradesh accredited with IECEE certification for independent testing of MCB & RCCB for KEMA and CB certification from DEKRA, Netherlands. These certifications enable HPL access to the new 53 countries.”

Moving ahead with some key HPL strategies, Seth disclosed, “Our various cost rationalisation initiatives and implementation of lean methodology have helped us to boost the EBITDA margins. Looking beyond the short-term challenges in the meter segment, we are extremely positive about the opportunities in the smart metering space as both the public and private power distribution companies increasingly shift focus towards installing smart meters to replace conventional meters. Overall, the company is confident of overcoming near-term challenges and create sustainable value for its stakeholder.”