Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q3 FY21 Earnings Presentation
28 slides from Hpl Electric & Power's earnings presentation, Jan 12, 2021
Slide 1: Regulation 30 disclosure cover letter to exchanges
12th January, 2021 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 Sym
Slide 2: HPL Electric & Power Limited Q3 FY21 Results Update
HPL ELECTRIC & POWER LIMITED Q3 FY21 RESULTS UPDATE JANUARY 2021
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 FY21 - PERFORMANCE UPDATE 22 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 ‘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 & 9M FY21 - Performance Update
Q3 & 9M FY21 - PERFORMANCE UPDATE
Slide 13: Q3 & 9M FY21: YoY Performance Analysis
Q3 & 9M FY21 : YoY PERFORMANCE ANALYSIS In Rs Crore NET REVENUES ^ & GROSS MARGIN % EBITDA & EBITDA MARGIN % # CASH PAT & CASH PAT MARGIN % # 37.7% 36.8% 13.4% 14.2% 8.0% 6.5% 244 244 33 35 16 20 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 NET REVENUES * & GROSS MARGIN % EBITDA & EBITDA MARGIN %
Slide 14: Q3 FY21: YoY Segment Analysis
Q3 FY21: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN REVENUE BREAK-UP - ‘UTILITY’ (B2B) & ‘CONSUMER’ (B2C) 244 244 ^ 14 20 % EBIT Margin Q3 FY20 Q3 FY21 ^ 55 Utility (B2B), 39% Consumer (B2C), 65 Metering 16.7% 14.5% 61% 38 50 Switchgear 18.3% 18.4% 137 Lighting 11.5% 10.1% 10
Slide 15: 9M FY21: YoY Segment Analysis
9M FY21 : YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN REVENUE BREAK-UP - ‘UTILITY’ (B2B) & ‘CONSUMER’ (B2C) % EBIT Margin 9M FY20 9M FY21# 764 Utility (B2B), 35% 53 Metering 15.1% 13.3% 567 * Consumer (B2C), 141 65% 57 132 Switchgear 18.5% 15.5% 162 111 Lighting 10.7% 8.7% 438
Slide 16: Q3 FY21: Performance Analysis
Q3 FY21: PERFORMANCE ANALYSIS ❑ Q3 FY21 Performance in-line on a YoY basis led by robust growth in the Consumer segment (B2C) o The metering business revenue witnessed a growth of 17% in Q3FY21 compared to Q2FY21. However, the performance during the quarter remained subdued as inspections remained l
Slide 17: Q3 FY21: Update & Business Outlook
Q3 FY21: UPDATE & BUSINESS OUTLOOK ❑ Robust order book of Rs 354.4 crore ensures revenue visibility for the short and medium term- o Post the lockdown, HPL has received ‘smart meter orders’ worth Rs 90 crore in May 2020 o Enquiry base for Metering tenders is at a healthy level as tenders amounting t
Slide 18: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs. Cr.) Q3 FY21 Q3 FY20 YoY% 9MFY21 9MFY20 YoY% Net Revenue from Operations (Net of Excise) 244.0 244.1 -0.1% 567.3* 764.4 -25.8% COGS 154.3 152.0 1.5% 361.0 480.2 -24.8% Gross Profit 89.7 92.1 -2.7% 206.2 284.2 -27.4% Gross Margin (%) 36.8% 37.7
Slide 19: Marching Ahead Smartly with Smart Meters and Lighting Solutions
MARCHING AHEAD SMARTLY WITH SMART METERS AND LIGHTING SOLUTIONS HPL’s Smart Meters Supplied to Punjab State Government HPL to Install Smart Street Lights with Centralised Controlled Monitoring System at Jalandhar Smart City 18 18
Slide 20: HPL in Modern Trade
HPL IN MODERN TRADE Reinforcing the Presence in the Modern Trade 19 19
Slide 21: Marketing Campaigns – Amplifying Our Social Media Presence
MARKETING CAMPAIGNS – AMPLIFING 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 20 20
Slide 22: Marketing Campaigns – Amplifying Our Social Media Presence
MARKETING CAMPAIGNS – AMPLIFING 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 21 21
Slide 23: Channel Connects & Dealer Meets
CHANNEL CONNECTS & DEALER MEETS Organized Top Dealer Meets in Guwahati, Lucknow & Pune 22 22
Slide 24: Business Strategy
LED Lights BUSINESS STRATEGY
Slide 25: 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 26: 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 27: 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 FY20, this segment comprised ~49% of the total revenues ✓ HPL is looking to drive healthy growth in this business by using a 3-pronged approach
Slide 28: Contact details
Mr. Gautam Seth Joint Managing Director Email: gautamseth@hplindia.com Mr. Vikash Verma Director, Dickenson World Email: hpl@dickensonworld.com Contact no: +91 9664009029