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HPL Electric and Power Ltd (referred to as the “Company”; NSE Symbol: HPL, BSE Scrip Code: 540136), has reported revenue of ₹ 129 Crores in Q1 FY’22. The revenue of the company has grown by 34% year on year.
Consolidated Performance Highlights
|Particulars (In ₹ Cr)||Q1 FY22||Q1 FY21||FY21||FY20|
|Revenue from Operations||129.0||96.2||875.1||976.6|
|EBITDA Margin %||7.6%||6.9%||13.6%||12.8%|
The Metering business revenue registered a strong growth of 40% YoY to ₹ 49.4 crores. However, the performance of the Metering business was impacted as the inspection and dispatches was halted due to COVID-19 related lockdown and restrictions. The inspection and enquiries started gaining traction in Q2 FY22.
In the ‘Consumer’ segment (including non-utility meters) performance too was muted by the lockdown. However, the ‘Consumer’ segment revenue grew by 31% YoY to ₹ 80 crores in Q1 FY22. The switchgear segment revenue grew ₹ 23.7 crores in Q1 FY22, a growth of 4% YoY.
Similarly, the lighting segment & the wires and cables segment revenue grew by 33% YoY and 35% YoY, respectively to ₹ 37.6 crores and ₹ 18.2 crores in Q1 FY22. The revenue share of the Consumer segment stood stable at 67% in Q1 FY22 & Q1 FY21, respectively.
The company EBITDA surged by 48% YoY to ₹ 9.8 crores with the EBITDA margin at 7.6%.
The EBITDA Margin expanded by 71 bps YoY to 7.6% in Q1 FY22 due to a sharp decline in the raw material prices.
The company bottom-line was primarily impacted by the under absorption of fixed costs (including the interest cost & depreciation). However, the actual cash loss during the quarter was restricted at ₹ 6 crores.
Mr. Gautam Seth, Joint Managing Director, said, “The Company’s revenue for the first quarter registered 34% YoY growth to ₹ 129 Crores as compared to the corresponding quarter last year, though on a lower base. The metering segment’s traction was hindered due to lower inspections and dispatches led by COVID-19 restrictions and lockdown, severely impacting the momentum gained in Q4 FY21. However, the Metering business revenue grew by 40% YoY to ₹ 49 crores in Q1 FY22.
The Consumer segment sentiments too remained muted during Q1 FY22 due the nationwide severe second wave of COVID-19. We are now witnessing strong traction in Q2 FY22 across our segments with pick-up in Meter dispatches and increase in demand in the Consumer segment. Going ahead, we have a strong order book position of ₹ 685 Crores ensuring revenue visibility for the current year.
The Company is on a sweet spot from a Smart Meter perspective with the Government earmarking of ₹ 225 billion towards installation for 25 crores smart prepaid meters across the nation under the ₹ 3-lakh-crore power distribution scheme. The Government is expected to float ~ ₹ 2,500 crores (existing and tenders in pipeline) Metering tenders resulting in picking up enquiries, participation and winning of smart meters tenders amongst the industry players.
We are very positive about the opportunities in the smart metering space as both the public and private power distribution companies are progressively shifting focus towards installing smart meters, replacing the conventional meters.
We have a diversified strong portfolio of electrical equipment catering to multiple market demands. We are positive on the long-term growth trajectory of the Consumer segment powered by the onset of the festive season, a pick-up in the economic activity, improved consumer sentiments and renewed government focus, funding and attention to the overall infrastructure sector. Thanks to our increased R&D capabilities, our exports have grown at a notable pace of 71% YoY. We expect the momentum to sustain as we make firm in-roads to new export markets.
We will continue to undertake cost rationalisation initiatives and implement lean methodology for enhancing our overall profitability. Overall, the Company is confident to sail through the near-term challenges and create sustainable value for its stakeholders.”