Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q1 FY23 Earnings Presentation
29 slides from Hpl Electric & Power's earnings presentation, Aug 9, 2022
Slide 1: Regulation 30 disclosure cover letter to exchanges
9th August, 2022 The Manager, BSE Limited Listing Department, 25th Floor, New Trading Ring, Rotunda National Stock Exchange of India Ltd. Building, PhirozeJeejeebhoy Towers, “Exchange Plaza”, C-1, Block G, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Symbol
Slide 2: HPL Electric & Power Limited Q1 FY23 Results Update
HPL ELECTRIC & POWER LIMITED Q1 FY23 RESULTS UPDATE AUGUST 2022
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 Q1 FY23 - PERFORMANCE UPDATE 23 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 Gurugram Facility I: Electronic Meters, R&D Center Facility I: Switchgear, Electronic Meters, and Parts of for Smart Meters Switchgear 16
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 ‘3 new products in the Switchgear Category in Q1FY23 Switchgear Submersible starter panel DC Switch Disconnector Protection Switch Enclosure IN-HOUSE R&D CAPABILITIES
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: Q1 FY23 - Performance Update
Q1 FY23 - PERFORMANCE UPDATE
Slide 13: Q1FY23: YoY Performance Analysis
Q1FY23 : YoY PERFORMANCE ANALYSIS Q1FY23 In Rs Crore NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PAT & CASH PAT MARGIN % 38.4% Gross Margin 33.6% 12.7% 7.1% 7.6% 296 38 21 -4.5% 129 Net Revenue 10 Q1FY22 Q1FY23 Q1FY22 Q1FY23 Q1FY22 Q1FY23 -6.7 NET REVENUES & GROSS MARGIN % EBITDA & E
Slide 14: Q1FY23: YoY Segment Analysis
Q1FY23: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN % EBIT Margin Q1 FY22 Q1 FY23 296 Metering & 4.6% 12.9% 149 Systems 129 Consumer & 2.6% 12.1% 77 147 Industrial 52 Q1 FY22 Q1 FY23 SEGMENT REVENUE SHARE % Q1 FY22 Q1 FY23 Metering & Systems 40% 50% 50% 60% Consumer & Industri
Slide 15: FY22: YoY Segment Analysis
FY22 : YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN 1014 % EBIT Margin FY21 FY22 875 570 13.9% 12.3% 440 Metering & Systems 434 444 Consumer & 10.8% 10.6% Industrial FY21 FY22 SEGMENT REVENUE SHARE % 44% Metering & Systems 50% 50% 56% Consumer & Industrial 14 14
Slide 16: Q1FY23: Performance Analysis
Q1FY23: PERFORMANCE ANALYSIS ❑ Strong Performance in Q1FY23 led by robust performance in all the segments. o The Company registered robust performance YoY and revenue surged by 129.2% in Q1FY23 to Rs. 295.6 crore as compared to Rs. 129 crore in Q1FY22. o Gross profit for the quarter improved by 100.
Slide 17: Update & Business Outlook
UPDATE & BUSINESS OUTLOOK ❑ Strong and healthy inquiry in smart meters backed and on the order execution front, the work is running at a fast pace which will lead to timely completion of the pipeline. ❑ The ‘Metering & Systems ’ segment is anticipated to receive good traction and growth in FY23. o I
Slide 18: Expanding Its Global Footprint
EXPANDING ITS GLOBAL FOOTPRINT HPL’s Global Network HPL exports have seen a growth of 19% Year on Year in Q1FY23. HPL’s pending export order gives a good near-term sales visibility in the coming quarters. HPL’s in house R&D strength to enable higher exports. o HPL’s LV switchgear testing laboratory
Slide 19: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs. Crore) Q1 FY23 Q1 FY22 YoY% Q4 FY22 QOQ% FY22 Net Revenue from Operations 295.6 129.0 129.2% 325.1 -9.1% 1014 COGS 196.4 79.4 147.3% 209.9 -6.4% 652.7 Gross Profit 99.2 49.6 100.1% 115.2 -13.9% 361.3 Gross Margin (%) 33.6% 38.0% -487 bps 35.4%
Slide 20: Marketing Campaigns – Amplifying Our Social Media Presence
MARKETING CAMPAIGNS – AMPLIFYING OUR “SOCIAL MEDIA” PRESENCE “Garnered Over 20 Million Reach” Amplified our Brand Presence Through Social Media Handles Conducted as well as Sponsored various Industrial Webinars and Virtual Exhibitions 19 19
Slide 21: Raising the Brand Visibility Quotient
RAISING THE BRAND VISIBILITY QUOTIENT Electrician Bag distributed in Chennai Kerala Electrical Traders Association (KETA) AGM @ Palakkad MES Pathankot –Builder’s Association Meet Solar Webinar 20 20
Slide 22: Elite Channel Connects & Dealer Meets
ELITE CHANNEL CONNECTS & DEALER MEETS Tamil Nadu – Distributor’s Meet Karnataka – Distributor’s Meet 21 Lonavala – West Distributor’s Meet Gujarat – Distributor’s Meet 21
Slide 23: Elite Channel Connects & Dealer Meets
ELITE CHANNEL CONNECTS & DEALER MEETS Kerala – Distributor’s Factory Visit Delhi- Distributor’s Meet 22 Pench, MP – Central Distributor’s Meet 22
Slide 24: Meets & Marketing Activities
MEETS & MARKETING ACTIVITIES Guwahati – IIT Hoarding in Prayagraj Nagercoil, Chennai – Electrician Meet Nagpur – Goldring Gifted to a Retailer 23 23
Slide 25: Business Strategy
LED Lights BUSINESS STRATEGY
Slide 26: 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 27: 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 28: Focus on Driving Healthy Growth in the Consumer Business
FOCUS ON DRIVING HEALTHY GROWTH IN THE ‘CONSUMER’ BUSINESS ✓ ‘Consumer’ segment includes Non-utility Metering, Switchgear, Lighting, and Wires & Cables. In FY21, this segment comprised ~63% of the total revenues ✓ HPL is looking to drive healthy growth in this business by using a 3-pronged approach
Slide 29: Contact details
Mr. Gautam Seth Joint Managing Director & CFO Email: gautamseth@hplindia.com Mr. Sonam Raghuvanshi Associate Director, Dickenson World Mr. Chintan Mehta Director, Dickenson World Email: hpl@dickensonworld.com