New Delhi

HPL Electric and Power Ltd - manufacturer of a diverse portfolio of electric equipment - has reported revenue of Rs 280 crores in Q2 FY22 - a growth of 23% compared to Rs 227 in same period FY21. 

The company was a strong uptick in Metering and Consumer segment (B2C) business. The Metering business revenue surged by 22% YoY to Rs 114 crores due to a rise in inspections and dispatches resulting from the phase wise opening of the economy from COVID-19 related restrictions. The Consumer segment (including non-utility meters) grew by 20% YoY to Rs 175.0 crores in Q2 FY22. The switchgear and the wires & cables segment revenue grew by 53% to Rs 64.4 crores and Rs 35.3 crores, respectively in Q2 FY22. The revenue share of the Consumer segment stood at 63% in Q2 FY22. 

The EBITDA margin contracted by 341 bps YoY to 11.6% in Q2 FY22 owing to a sharp increase in the raw material prices (357 bps YoY) led by the rise in metal prices coupled with global chip shortages. The other expenses increased by 62 bps YoY owing to higher marketing spends. On the other hand, a decline in employee expenses (78 bps YoY) restricted further margin contraction. The company’s cash profit during Q2 FY22 stood at Rs 16.8 crores.

Gautam Seth, Joint Managing Director, HPL Electric and Power Ltd, said, “The phase wise unlocking of economy backed by the Government’s aggressive vaccination drive lifted the consumer sentiments resulting in a 23% YoY growth in the company revenue to Rs 280 crores in Q2 FY22. The Metering business revenue grew by 22% YoY to Rs 114 crores in Q2 FY22. The metering segment gained momentum from higher inspections and dispatches in Q2 FY22. The Consumer segment revenue surged by 20% YoY to Rs 175 crores owing to festive season demand and pick-up in economic activities in Q2 FY22. Both the switchgear and wire & cable segments revenue grew by 53% YoY. We foresee a sustainable momentum in both Meter and Consumer segment for the remaining H2 FY22. Going ahead, we have a robust order book position of Rs 859 crores ensuring strong revenue visibility for FY22. The execution of Rs 372 crores order bagged for switchgear, wires and other related accessories for the housing project in Andhra Pradesh is poised to add a notable contribution in FY22.” 

The smart meter industry is the sunrise sector. The Government’s earmarking of Rs 225 billion towards installation for 25 crores smart prepaid meters across the nation under the Rs 3-lakh-crore power distribution scheme will brighten up prospects for a seasoned player like HPL Electric. “The company has recently won Rs 179 crores of smart meters order from the largest private utility in an Eastern Indian state, thereby fortifying its leadership position in smart meters. The foresaid project is in line with India’s goal of overhauling the power infrastructure towards a better future. With this prestigious win, HPL aims to replicate its technology prowess and looks forward to win projects from other power utility companies. The Government is estimated to float about Rs 2,500 crores (existing and tenders in the pipeline) metering tenders resulting in picking up in enquiries, participation and winning of smart meters tenders amongst the industry players," said Gautam Seth.