Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q3 FY20 Earnings Presentation
25 slides from Hpl Electric & Power's earnings presentation, Feb 14, 2020
Slide 1: Stock exchange disclosure letter under Regulation 30
14th February, 2020 The Manager, BSE Limited Listing Department, 25th Floor, New Trading Ring, Rotunda National Stock Exchange of India Ltd. Building, Phiroze Jeejeebhoy Towers, “Exchange Plaza”, C-1, Block G, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Sy
Slide 2: HPL Electric & Power Limited Q3 FY20 Results Update
HPL ELECTRIC & POWER LIMITED Q3 FY20 RESULTS UPDATE FEBRUARY 2020
Slide 3: 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 4: Discussion Summary
DISCUSSION SUMMARY 04 COMPANY OVERVIEW 11 Q3 FY20 - PERFORMANCE UPDATE 20 BUSINESS STRATEGY
Slide 5: Company Overview
Smart Meter COMPANY OVERVIEW
Slide 6: Profile
PROFILE Trusted Electric Equipment Manufacturer Market Leader in Electric Meters & On-load ▪ ‘One-stop shop’ offering wide range of low-voltage electric products - Change-over Switches o Metering Solutions (conventional and smart meters) ▪ ‘50% Market Share’ in the Domestic On-load Change-over o Swi
Slide 7: Wide-Ranging Product Portfolio
WIDE-RANGING PRODUCT PORTFOLIO Metering Solutions Switchgears Lighting Equipment Wires and Cables Smart Meter Industrial Applications Consumer LED Products ACB MCCB Phase Selector Aries LED LED Glow 9W Fire Resistant Cables Net Meter Domestic Applications Commercial LED Products HPL is the “ONE-STOP
Slide 8: State of Art Manufacturing Facilities
STATE OF ART MANUFACTURING FACILITIES GURUGRAM JABLI Product Capacity Segments (per annum) Electronic Meters 11 million units Lighting Equipment 26 million units Facility I: Switchgear, Electronic Meters, and Parts of Gurugram Facility I: Electronic Meters Switchgear 16 million units Lighting Equipm
Slide 9: Strong R&D Thrust – Continuous Technology Upgradation
STRONG R&D THRUST – CONTINUOUS TECHNOLOGY UPGRADATION CONTINUOUS R&D TO LAUNCH AND MARKET EXCITING NEW INNOVATIVE PRODUCTS • Launched ‘4’new products’ in the Meters Category, ‘15+ new products’ in Switchgear, and ‘14 new products’ in Lighting in FY20 • Solar Electrical Products - Developed a complet
Slide 10: Established Pan-India Distribution Network & Brand Presence
ESTABLISHED PAN-INDIA DISTRIBUTION NETWORK & BRAND PRESENCE Head Office Branch Office ESTABLISHED PAN-INDIA DISTRIBUTION NETWORK & BRAND PRESENCE Works TO CAPTURE SIGNIFICANT GROWTH POTENTIAL IN ELECTRICAL EQUIPMENT INDUSTRY 90+ Branch & Representative Offices 21 Warehouses across India 900+ Authori
Slide 11: Extensive Experience, Established Relationships, Strong Credentials
EXTENSIVE EXPERIENCE, ESTABLISHED RELATIONSHIPS, STRONG CREDENTIALS STRONG EXECUTION, ESTABLISHED RELATIONSHIPS AND STRONG PRE-QUALIFICATION CREDENTIALS MAKE HPL A PREFERRED SUPPLIER OF THE SPECIALISED ELECTRICAL EQUIPMENTS EXTENSIVE EXPERIENCE ESTABLISHED RELATIONSHIPS STRONG PRE-QUALIFICATION CRED
Slide 12: Q3 FY20 - Performance Update
Q3 FY20 - PERFORMANCE UPDATE
Slide 13: Q3 & 9M FY20: YoY Highlights
Q3 & 9M FY20: YoY HIGHLIGHTS In Rs Crore NET REVENUES* & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PAT & CASH PAT MARGIN % 37.7% 13.4% 35.4% 12.4% 6.7% 5.8% 259.4 244.1 32.1 32.6 15.1 15.9 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 NET REVENUES* & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH
Slide 14: Q3 FY20: Performance Analysis & Business Outlook
Q3 FY20: PERFORMANCE ANALYSIS & BUSINESS OUTLOOK ❑ Metering Revenues were Flat on YoY Basis - o Meter dispatches were delayed due to pending delivery instructions from Utilities o Utilities are now gearing up to install smart meters as opposed to conventional meters post the renewed thrust by the ce
Slide 15: Q3 FY20: YoY Segment Analysis
Q3 FY20: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT REVENUE AND EBIT MARGIN REVENUE BREAK-UP - ‘B2B’ & ‘B2C’ 259.4 244.1 % EBIT Margin Q3 FY19 Q3 FY20 15.3 B2C, 44% 13.9 B2B, 56% 52.1 Metering 15.9% 16.1% 55.3 57.3 38.3 Switchgear 19.3% 18.3% Lighting 11.4% 11.5% 134.7 136.6 B2C includes Non-utility M
Slide 16: 9M FY20: YoY Segment Analysis
9M FY20: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT REVENUE AND EBIT MARGIN REVENUE BREAK-UP - ‘B2B’ & ‘B2C’ 806.0 764.4 % EBIT Margin 9M FY19 9M FY20 80.2 52.7 B2C, 43% 139.6 Metering B2B, 57% 141.4 14.5% 15.1% 167.7 132.3 Switchgear 19.0% 18.5% Lighting 11.9% 10.7% 418.4 437.9 B2C includes Non-utili
Slide 17: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs. Cr.) Q3 FY20 Q3 FY19 YoY% 9M FY20 9M FY19 YoY% Net Revenue from Operations (Net of Excise) 244.1 259.4 -5.9% 764.4 806.0 -5.2% COGS 152.0 167.7 -9.4% 480.2 529.9 -9.4% Gross Profit 92.1 91.7 0.4% 284.2 276.1 2.9% Gross Margin (%) 37.7% 35.4% 2
Slide 18: Marketing Campaigns & Activations
MARKETING CAMPAIGNS & ACTIVATIONS 17 17
Slide 19: New Product Launches at Elecrama 2020
NEW PRODUCT LAUNCHES AT ELECRAMA 2020 ✓ Launched ‘4 New Products’ in the Meters Category and ‘Over 15 New Products’ in the Switchgear Category ✓ Launched a new innovative product range in the LED Lighting Segment ‘Next Seven Wonders’ 18 18
Slide 20: Channel Connects & Dealer Meets
CHANNEL CONNECTS & DEALER MEETS ✓ Organized Technical Seminars in Mumbai, India and Kathmandu, Nepal 19 19
Slide 21: Business Strategy
LED Lights BUSINESS STRATEGY
Slide 22: Future Business Strategy for Value Creation
FUTURE BUSINESS STRATEGY FOR VALUE CREATION ✓ Commands a ‘market share of ~20%’ in the domestic meters market Leading Electric Meter Manufacturer with an ‘installed capacity of 1.1 crore meters per year’ Fully Geared To Meet The ‘Smart ✓ Well Positioned to Capitalise on the Smart Meter Opportunity b
Slide 23: Smart Meters – Gamechanging Initiative with Enormous Potential
SMART METERS – “GAMECHANGING INITATIVE” WITH ENORMOUS POTENTIAL ❑ What are smart meters? What is the opportunity size? Smart Meter Suppliers ▪ Meters with embedded software to enable automation and communication ▪ Ministry of Power plans to install 25 to 30 crore smart meters across India – ‘which t
Slide 24: Focus on Driving Healthy Growth in the Consumer B2C Business
FOCUS ON DRIVING HEALTHY GROWTH IN THE CONSUMER ‘B2C’ BUSINESS ✓ B2C business includes Non-utility Metering, Switchgear, Lighting and Wires & Cables. At present, this segment contributes ~44% of the total revenues ✓ HPL is looking to drive healthy growth in this business by using a 3-pronged approac
Slide 25: Contact details
Mr. Gautam Seth Joint Managing Director Email: gautamseth@hplindia.com Mr. Mandar Kapse / Vikash Varma IR Consultants Email: hpl@dickensonworld.com Contact no: +91 9867550004 / 9664009029