New Delhi, February 2017 – HPL Electric and Power Ltd, an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, reported its unaudited and reviewed results for the third quarter and first nine months of the financial year ending 31st March, 2017.

“We witnessed positive business scenario in the third quarter steered by our metering business which gained momentum with an improved pace of tendering, after a slower take-off of orders in first half of the financial year. Further, our switchgear and wires & cables sales also grew on a sequential basis, partially offset by lower lighting sales which were impacted by the phase-out of CFL products and voluntary reduction of low margin business from EESL/projects. We now have a strong order book of Rs 342.2 crore which gives us good revenue visibility over the coming year. Further, various government initiatives like UDAY scheme, Smart Cities Mission, Housing for All, IPDS, DDUGJY etc. will drive the growth for the electric equipment industry over coming years. Further, opportunities under the ‘Housing for All’ initiative are expected to get further impetus from ‘Infrastructure Status’ given to affordable housing in the recent Union Budget. We strongly believe that HPL can effectively leverage its strong R&D and manufacturing capabilities, long standing relationships with domestic and institutional customers and a more visible brand will capitalise on these opportunities,” said Gautam Seth, Joint Managing Director.

Key developments in the third quarter of FY2016-17 were:

<< Strong order book of Rs 342.2 cr as on 31st December 2016 – Metering orders of Rs 227.5 cr; Switchgear orders of Rs 54.0 cr; and Lighting orders of Rs 57.1 cr
<< Metering sales declined on YoY basis due to lower take-off of metering orders by utilities.
<< Switchgear sales grew by 8% despite of demonetisation which affected retail business. Various government initiatives like IPDS, DDUGJY in the renewables space and new product launches like ELMO switches and automated ATS had positive impact.
<< Lighting sales were impacted by the phase-out of CFL products and voluntary reduction of low margin business from EESL/projects.
<< The trade business in LEDs witnessed good traction and increased focus on LED luminaries helped in partially offsetting the impact of lower CFL sales.
·<< Wires & Cables sales declined YoY primarily due to drop in commodity prices in first 7 months on FY17. This situation is now improving driven by revival in copper price in November 2016 and subsequent selling price revision by the manufacturers.
<< Work on HPL’s Rs 70 cr order for Bhopal Smart City Automation and LED Lighting solution has commenced and revenues will start contributing from Q4 FY17
<< Advanced lighting solutions with integrated communication is set to present new business opportunities in the lighting segment, and
<< With an increased focus on improving the working capital efficiency, we have taken consent from 159 Channel Partners for ‘Dealer Channel Financing’ which will reduce debtor days over coming quarters.

HPL is an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, including, metering solutions, switchgears, lighting equipment and wires and cables, catering to consumer and institutional customers in the electrical equipment industry. HPL had the largest market share in the market for electricity energy meters in India in fiscal 2015, with one of the widest portfolios of meters in India and the fifth largest market share for LED lamps during the corresponding period (Source: Frost & Sullivan Report, February 2016). HPL’s manufacturing capabilities are supported by a large sales and distribution network with a pan-India presence. HPL currently manufacture and sell its products under the umbrella brand ‘HPL’, which has been registered in India since 1975.