Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q4 FY17 Earnings Presentation
27 slides from Hpl Electric & Power's earnings presentation, May 2017
Slide 1: HPL Electric & Power Limited Q4 & FY17 Results Update
THE POWER OF TECHNOLOGY HPL ELECTRIC & POWER LIMITED Q4 & FY17 RESULTS UPDATE MAY 2017
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by HPL Electric & Power Limited (“HPL” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financ
Slide 3: Quarterly Update
QUARTERLY COMPANY BUSINESS STRATEGY SHAREHOLDING UPDATE OVERVIEW & OUTLOOK STRUCTURE 3
Slide 4: Dividend Update
DIVIDEND UPDATE DIVIDEND PAYOUT FOR FY 2016-17 BOARD OF DIRECTORS HAVE RECOMMENDED A DIVIDEND OF RS. 1.50 PER EQUITY SHARE OF RS. 10 EACH FOR THE YEAR ENDED 31ST MARCH, 2017 WHICH AMOUNTS TO A TOTAL DIVIDEND PAYOUT OF RS. 9.64 CR (EXCL. DIVIDEND DISTRIBUTION TAX OF RS. 1.96 CR) TRANSLATING INTO DIVI
Slide 5: Q4 FY17 QoQ Analysis
Q4 & FY17 RESULT ANALYSIS Q4 FY17 QoQ ANALYSIS In Rs Crore REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 300.6 4.2% 13.1% 10.7% 3.7% 227.5 11.1 29.9 32.1 9.6 Q3 FY17 Q4 FY17 Q3 FY17 Q4 FY17 Q3 FY17 Q4 FY17 Revenues EBITDA EBITDA Margin % PAT PAT Margin % • Three successive quarters of growth in r
Slide 6: Q4 FY17 QoQ Revenue Analysis
Q4 & FY17 RESULT ANALYSIS Q4 FY17 QoQ ANALYSIS In Rs Crore REVENUE ANALYSIS • Metering sales grew by 10% QoQ with improved traction 300.6 % Share Q3 FY17 Q4 FY17 in orders from utilities 35.8 Metering 50.8% 42.4% 227.5 1.0 • Metering margin declined due to unfavourable product 31.1 95.6 Switchgear 1
Slide 7: Q4 & FY17 YoY Analysis
Q4 & FY17 RESULT ANALYSIS Q4 & FY17 YoY ANALYSIS In Rs Crore REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN Q4 FY17 YoY Analysis 5.4% 323.9 14.5% 300.6 10.7% 3.7% 47.1 17.4 32.1 11.1 Q4 FY16 * Q4 FY17 Q4 FY16 * Q4 FY17 Q4 FY16 * Q4 FY17 Revenues EBITDA EBITDA Margin % PAT PAT Margin % FY17 YoY Ana
Slide 8: Q4 & FY17 YoY Segment Analysis
Q4 & FY17 RESULT ANALYSIS Q4 & FY17 YoY ANALYSIS Q4 FY17 YoY Analysis FY17 YoY Analysis In Rs Crore REVENUE ANALYSIS REVENUE ANALYSIS 1,188.6 323.9 % Share Q4 FY16 * Q4 FY17 2.6 % Share FY16 * FY17 300.6 151.4 986.3 34.0 Metering 49.9% 42.4% 2.1 Metering 49.2% 46.8% 35.8 129.5 78.6 273.5 Switchgear
Slide 9: Key Developments
Q4 & FY17 RESULT ANALYSIS Q4 & FY17 YoY ANALYSIS KEY DEVELOPMENTS • Operating performance witnessed significant improvement in H2 • Strong order book of Rs 285.4 cr as on 31st March 2017 FY17 – • Metering orders of Rs 199.2 cr • Revenues: Rs 528.1 cr in H2 FY17 vs. Rs 458.2 cr in H1 FY17 • Lighting
Slide 10: Consolidated Profit & Loss Statement
Q4 & FY17 RESULT ANALYSIS CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs Cr) Q4 FY17 Q3 FY17 QoQ % Q4 FY16 * YoY % FY17 FY16 * YoY % Revenue from Operations 300.6 227.5 32.2% 323.9 -7.2% 986.3 1,188.6 -17.0% COGS 211.9 148.0 43.2% 207.2 2.3% 654.1 780.6 -16.2% Gross Profit 88.7 79.5 11.6% 1
Slide 11: Consolidated Balance Sheet
Q4 & FY17 RESULT ANALYSIS CONSOLIDATED BALANCE SHEET Particulars (In Rs Cr) FY17 Particulars (In Rs Cr) FY17 Equities & Liabilities Assets Shareholder's Funds 730.2 Non-Current Assets 443.8 Equity share capital 64.3 Tangible Assets 387.2 Other Equity 665.9 Intangible Assets 32.8 Minority Interest 12
Slide 12: Key Business Development
KEY BUSINESS DEVELOPMENT HPL COMMENCES COMMERCIAL PRODUCTION AT NEWLY SET-UP MANUFACTURING PLANT AT GUWAHATI, ASSAM • The new plant, commenced on 30th March 2017, will have capabilities to manufacture range of Switchgears, Circuit Breakers, Fans, Wiring Accessories, Electronic Energy Meters • HPL wi
Slide 13: Company Overview
QUARTERLY COMPANY BUSINESS STRATEGY SHAREHOLDING UPDATE OVERVIEW & OUTLOOK STRUCTURE 13
Slide 14: Company Overview: Brief Profile
COMPANY OVERVIEW BRIEF PROFILE • HPL is an established electric equipment manufacturer in India - market leader in electricity energy meters (20% mkt. share) & on-load change-over switches (50% mkt. share), 5th largest LED manufacturer, 5% mkt. share in LV switchgears BUSINESS • 40+ year old establi
Slide 15: Wide-Ranging Product Portfolio
COMPANY OVERVIEW WIDE-RANGING PRODUCT PORTFOLIO Metering Solutions Switchgears Lighting Equipment Wires and Cables HT Meter Industrial Applications Consumer LED Products Fire Resistant ACB MCCB Changeover Switch Aries LED LED Glow 9W Cables Multi Function Meter Co-axial Cables Domestic Applications
Slide 16: Strong R&D Thrust – Continuous Technology Upgradation
COMPANY OVERVIEW STRONG R&D THRUST – CONTINUOUS TECHNOLOGY UPGRADATION FOCUS ON CONTINUOUS R&D TO LAUNCH AND MARKET EXCITING NEW INNOVATIVE PRODUCTS LOADED WITH IMPROVED FEATURES, ENERGY EFFICIENCY, AUTOMATION AND COMMUNICATION LAUNCH OF INNOVATIVE PRODUCTS & ROBUST NEW PRODUCT PIPELINE: MOVING FROM
Slide 17: State of Art Manufacturing Facilities
COMPANY OVERVIEW STATE OF ART MANUFACTURING FACILITIES 9 ROBUST MANUFACTURING FACILITIES ACROSS NORTH INDIA • State of art manufacturing capabilities including design and product development, component designing, tool making and commercial production • Capabilities to manufacture customized products
Slide 18: State of Art Manufacturing Facilities
COMPANY OVERVIEW STATE OF ART MANUFACTURING FACILITIES GURGAON JABLI GUWAHATI Facility I: Facility I: • Products: MCBs, distribution boards • Products: Switchgears, Circuit and panels, MCB isolators, MCB Breakers, Fans, Wiring changeover switches, earth leakage Accessories, Electronic Energy circuit
Slide 19: State of Art Manufacturing Facilities
COMPANY OVERVIEW STATE OF ART MANUFACTURING FACILITIES KUNDLI SONEPAT GHARAUNDA Kundli • Products: Switchgears and parts of • Products: Lighting equipment • Products: Wires and Cables electronic energy meters and parts of • Capacity: 26 Million Units • Capacity: 194.4 Mn meters lighting equipment •
Slide 20: Established Pan-India Distribution Network & Brand Presence
COMPANY OVERVIEW ESTABLISHED PAN-INDIA DISTRIBUTION NETWORK & BRAND PRESENCE ESTABLISHED PAN-INDIA DISTRIBUTION NETWORK & BRAND PRESENCE TO CAPTURE SIGNIFICANT GROWTH POTENTIAL IN ELECTRICAL EQUIPMENT INDUSTRY Retail Branding Social Media Head Office 90+ Branch Offices Branch Office 21 Warehouses ac
Slide 21: Extensive Experience, Established Relationships, Strong Pre-Qualification Credentials
COMPANY OVERVIEW EXTENSIVE EXPERIENCE, ESTABLISHED RELATIONSHIPS, STRONG PRE-QUALIFICATION CREDENTIALS STRONG EXECUTION, ESTABLISHED RELATIONSHIPS AND STRONG PRE-QUALIFICATION CREDENTIALS MAKE HPL A PREFERRED SUPPLIER OF THE SPECIALISED ELECTRICAL EQUIPMENTS EXTENSIVE EXPERIENCE ESTABLISHED RELATION
Slide 22: Business Strategy & Outlook
QUARTERLY COMPANY BUSINESS STRATEGY SHAREHOLDING UPDATE OVERVIEW & OUTLOOK STRUCTURE 22
Slide 23: Business Strategy & Outlook: Key Focus Areas
BUSINESS STRATEGY & OUTLOOK KEY FOCUS AREAS EXPAND PRODUCT RANGE • Utilise existing capacity to double the revenues over next 4-5 years • Leverage R&D capabilities to develop high margin LED lighting equipments ROBUST REVENUE GROWTH • Focus on value-added products – specialty wires, smart meters, pr
Slide 24: Industry Outlook – Positive Regulatory Policies
BUSINESS STRATEGY & OUTLOOK INDUSTRY OUTLOOK – POSITIVE REGULATORY POLICIES THE ELECTRIC EQUIPMENT INDUSTRY IS EXPECTED TO GROW AT A CAGR OF 8% - 12% OVER 2016 – 2020 HPL CAN EFFECTIVELY LEVERAGE ITS STRONG R&D & MANUFACTURING CAPABILITIES AND LONG STANDING RELATIONSHIPS WITH GOVERNMENT AGENCIES, PO
Slide 25: Shareholding Structure
QUARTERLY COMPANY BUSINESS STRATEGY SHAREHOLDING UPDATE OVERVIEW & OUTLOOK STRUCTURE 25
Slide 26: Shareholding Structure
SHAREHOLDING STRUCTURE SHARE PRICE PERFORMANCE MARKET DATA AS ON 22ND MAY 2017 Market Capitalization (Rs Cr) 893.1 200 175 Price (Rs) 138.9 150 125 100 No. of Shares Outstanding (Cr) 6.4 75 50 25 Face Value (Rs) 10.0 0 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 52 Week High-Low (Rs) 198
Slide 27: Contact Details
Mr. Gautam Seth Mr. Nilesh Dalvi / Mr. Arun Prakash Joint Managing Director IR Consultant Email: gautamseth@hplindia.com Email: nilesh.dalvi@dickensonir.com / arun.prakash@dickensonir.com Contact no: +91 9819289131 / 7506933892 27