Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q4 FY21 Earnings Presentation
28 slides from Hpl Electric & Power's earnings presentation, Jun 28, 2021
Slide 1: Regulation 30 disclosure letter to stock exchanges
28th June, 2021 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 Q4 FY21 Results Update
HPL ELECTRIC & POWER LIMITED Q4 FY21 RESULTS UPDATE JUNE 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 Q4 FY21 - 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 ‘5 new products’ in the Meters Category, ‘6 new products’ in Switchgear, and ‘12 new products’ in Lighting in FY21 • Solar Electrical Products - Developed a complete
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: Q4 & FY21 Performance Update
Q4 & FY21 - PERFORMANCE UPDATE
Slide 13: Q4 & FY21: YoY Performance Analysis
Q4 & FY21 : YoY PERFORMANCE ANALYSIS In Rs Crore NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % # CASH PAT & CASH PAT MARGIN % # 38.1% 38.0% 14.2% 12.7% 8.4% 5.6% 308 44 212 27 26 12 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 NET REVENUES * & GROSS MARGIN % EBITDA & EBITDA MARGIN % # CA
Slide 14: Q4 FY21: YoY Segment Analysis
Q4 FY21: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN REVENUE BREAK-UP - ‘UTILITY’ (B2B) & ‘CONSUMER’ (B2C) 308 % EBIT Margin Q4 FY20 Q4 FY21 26 Utility (B2B), 39% Consumer (B2C), Metering 12.5% 16.3% 61% 212 89 13 Switchgear 18.9% 19.0% 68 51 57 Lighting 11.8% 11.3% 142 Consum
Slide 15: FY21: YoY Segment Analysis
FY21 : YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN REVENUE BREAK-UP - ‘UTILITY’ (B2B) & ‘CONSUMER’ (B2C) % EBIT Margin FY20 FY21# 977 Utility (B2B), 37% 66 * 875 Metering 14.9% 14.4% Consumer (B2C), 210 83 63% 251 Switchgear 18.6% 16.6% 190 162 Lighting 11.0% 9.6% 511 Consumer
Slide 16: Q4 & FY21: Performance Analysis
Q4 & FY21: PERFORMANCE ANALYSIS ❑ Strong Performance in Q4 FY21 led by robust growth in the Metering and Consumer segment (B2C) o The Metering business as anticipated has witnessed improved performance in Q4FY21 than previous three quarters due to increased inspections and dispatches. The Metering b
Slide 17: Update & Business Outlook
UPDATE & BUSINESS OUTLOOK ❑ Strong order book of ₹ 704 crore ensures revenue visibility for the short and medium term- o HPL won orders worth over ₹ 372 crores for switchgear, wires and other related accessories for housing project in Andhra Pradesh. o HPL has ‘smart meter orders’ worth ₹ 100+ crore
Slide 18: Expanding Its Global Footprint
EXPANDING ITS GLOBAL FOOTPRINT Exports (In Rs Crore) HPL’s Global Network 37 21 FY20 FY21 HPL’s in house R&D strength to enable higher exports. o HPL’s LV switchgear testing laboratory in Jabli, Himachal Pradesh is accredited with IECEE certification for independent testing of MCB & RCCB for KEMA an
Slide 19: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs. Cr.) Q4 FY21 Q4 FY20 YoY% FY21 FY20 YoY% Net Revenue from Operations (Net of Excise) 307.8 212.2 45.1% 875.1 * 976.5 -10.4% COGS 190.7 131.3 45.2% 551.8 611.6 -9.8% Gross Profit 117.1 80.8 44.9% 323.3 365.0 -11.4% Gross Margin (%) 38.0% 38.1%
Slide 20: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (In Rs Cr) Mar-21 Mar-20 Particulars (In Rs Cr) Mar-21 Mar-20 Equities & Liabilities Assets Shareholder's Funds 758.3 748.7 Non-Current Assets 510.9 547.9 Equity share capital 64.3 64.3 Property, Plant & Equipment 450.9 472.2 Other Equity 694.0 684.4 Intangible
Slide 21: 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 20 20
Slide 22: Raising the Brand Visibility Quotient
RAISING THE BRAND VISIBILITY QUOTIENT Reinforcing the Presence in the ecommerce and Modern Trade along with BTL activities 21 21
Slide 23: Channel Connects & Dealer Meets
CHANNEL CONNECTS & DEALER MEETS Organized Top Dealer Meets in 15 cities in FY21 with over 450 dealers 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 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 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