Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Investor Presentation (October 2017)
32 slides from Hpl Electric & Power's investor presentation, Oct 5, 2017
Slide 1: Exchange disclosure: schedule of analyst/investor meetings
HPL Electric & Power Ltd Corporate Office : Windsor Business Park, B-1D, Sector-10. Noida, U.P. - 201301, INDIA. Tel.: +91-120-4656300 E-mail : hpt@hplindia.com CIN No. ; U74899DL1992PLC048945 The Manager, Listing Department, National Stock Exchange of India Ltd. “Exchange Plaza”, C-1, Block G, Band
Slide 2: Cover letter enclosing investor presentation
HPL Electric & Power Ltd Corporate Office : Windsor Business Park, B-1D, Sector-10, Noida, U.P. - 201301, INDIA. Tel.: +91-120-4656300 E-mail : hpl@hplindia.com CIN No. ; U74899DL1992PLC048945 We are enclosing an Investor Presentation which may be used during the meeting. A copy of the said intimati
Slide 3: HPL Electric & Power Limited Investor Presentation October 2017
THE POWER OF TECHNOLOGY HPL ELECTRIC & POWER LIMITED INVESTOR PRESENTATION OCTOBER 2017
Slide 4: 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 5: Company Overview
COMPANY COMPETITIVE BUSINESS STRATEGY QUARTERLY FINANCIAL OVERVIEW OVERVIEW ADVANTAGES & OUTLOOK UPDATE & SHAREHOLDING STRUCTURE 3 3
Slide 6: 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 7: Company Overview: Key Milestones
COMPANY OVERVIEW KEY MILESTONES • Settlement with Socomec • Listing on BSE and pursuant to which NSE with a successful • Incorporation promoters acquired its IPO raising Rs 3610 pursuant to a JV with entire stake in the mn French company Company • Significant Socomec S.A. for • Conversion into a pub
Slide 8: 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 9: Increasing Business Diversification
COMPANY OVERVIEW INCREASING BUSINESS DIVERSIFICATION In Rs Crore Select Products: 49% 54% 47% 48% 43% 40% 49% 56% 47% 54% • Prepayment meters • Net metering solutions 490 527 503 584 461 METERING • Transformer metering solutions with remote SOLUTIONS 90 78 72 126 79 communication facilities • 1 phas
Slide 10: Experienced Board of Directors & Management Team
COMPANY OVERVIEW EXPERIENCED BOARD OF DIRECTORS & MANAGEMENT TEAM Lalit Seth J.S Sabharwal • Chairman and Managing Director • Non-executive, Independent Director • Over 40 years of experience in the electric equipment • Over 25 years of experience in the field of sales and management manufacturing i
Slide 11: Competitive Advantages
COMPANY COMPETITIVE BUSINESS STRATEGY QUARTERLY FINANCIAL OVERVIEW OVERVIEW ADVANTAGES & OUTLOOK UPDATE & SHAREHOLDING STRUCTURE 9 9
Slide 12: Strong R&D Thrust – Continuous Technology Upgradation
COMPETITIVE ADVANTAGES 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: MOVIN
Slide 13: State of Art Manufacturing Facilities
COMPETITIVE ADVANTAGES 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 pr
Slide 14: State of Art Manufacturing Facilities: Gurgaon, Jabli, Guwahati
COMPETITIVE ADVANTAGES 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 M
Slide 15: State of Art Manufacturing Facilities: Kundli, Sonepat, Gharaunda
COMPETITIVE ADVANTAGES 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 equipm
Slide 16: Established Pan-India Distribution Network & Brand Presence
COMPETITIVE ADVANTAGES 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 Warehou
Slide 17: Extensive Experience, Established Relationships, Pre-Qualification Credentials
COMPETITIVE ADVANTAGES 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 RE
Slide 18: Business Strategy & Outlook
COMPANY COMPETITIVE BUSINESS STRATEGY QUARTERLY FINANCIAL OVERVIEW OVERVIEW ADVANTAGES & OUTLOOK UPDATE & SHAREHOLDING STRUCTURE 16 16
Slide 19: 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 20: 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 21: Industry Outlook – Metering and LED Lighting
BUSINESS STRATEGY & OUTLOOK INDUSTRY OUTLOOK – STRONG GROWTH AHEAD METERING SOLUTIONS LED LIGHTING SOLUTIONS Market Revenue Forecast for 2015-2020 (in Rs Bn) Market Revenue Forecast for 2015-2020 (in Rs Bn) CAGR 12% 46.0 52.0 CAGR 62% 310.1 41.5 33.3 37.0 30.0 191.8 118.9 73.0 27.9 45.0 2015 2016 20
Slide 22: Industry Outlook – Switchgears and Wires & Cables
BUSINESS STRATEGY & OUTLOOK INDUSTRY OUTLOOK – STRONG GROWTH AHEAD SWITCHGEARS WIRES & CABLES Market Revenue Forecast for 2015-2020 (in Rs Bn) Market Revenue Forecast for 2015-2020 (in Rs Bn) CAGR 6% 76.1 CAGR 4% 65.3 70.2 56.5 58.8 61.5 143 150 156 126 132 137 2015 2016 2017 2018 2019 2020 2015 201
Slide 23: Quarterly Update
COMPANY COMPETITIVE BUSINESS STRATEGY QUARTERLY FINANCIAL OVERVIEW OVERVIEW ADVANTAGES & OUTLOOK UPDATE & SHAREHOLDING STRUCTURE 21 21
Slide 24: Q1 FY18 Result Analysis
Q1 FY18 RESULT ANALYSIS In Rs Crore REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 264.9 12.0% 9.5% 246.3 1.9% 2.1% 31.7 23.5 5.0 5.3 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Revenues EBITDA EBITDA Margin % PAT PAT Margin % 22
Slide 25: Q1 FY18 Result Analysis: Revenue and EBIT Margin
Q1 FY18 RESULT ANALYSIS In Rs Crore REVENUE ANALYSIS 264.9 246.3 % Share Q1 FY17 Q1 FY18 • Metering sales were stable. Margins slightly declined due - 35.8 0.7 42.0 Metering 49.5% 53.3% to unfavourable product mix. 46.1 30.2 Switchgear 19.7% 17.1% 52.1 42.0 • Switchgear & lighting sales were impacte
Slide 26: Q1 FY18 Key Developments
Q1 FY18 RESULT ANALYSIS KEY DEVELOPMENTS • Robust order book of Rs 382.7 cr as on 30th June 2017 (34%) • Metering orders of Rs 305.7 cr (up 53% from Rs 199.2 cr at 31st March 2017) • Lighting orders of Rs 52.6 cr • Switchgear orders of Rs 22.1 cr • Wires & Cables orders of Rs 2.3 cr • Revival in pac
Slide 27: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (Rs. in Cr) Q1 FY18 Q1 FY17 YoY% Revenue from Operations 246.3 264.9 -7.0% COGS 144.4 155.4 -7.1% Gross Profit 101.9 109.5 -6.9% Gross Margins % 41.4% 41.3% 5 bps Excise Duty 25.0 21.7 15.2% Employee Expenses 25.8 29.1 -11.2% Other Expenses 27.5 27.0
Slide 28: Consolidated Balance Sheet
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 12.6 Capital Work in Progres
Slide 29: Financial & Shareholding Structure
COMPANY COMPETITIVE BUSINESS STRATEGY QUARTERLY FINANCIAL OVERVIEW OVERVIEW ADVANTAGES & OUTLOOK UPDATE & SHAREHOLDING STRUCTURE 27 27
Slide 30: Financial Summary
FINANCIAL SUMMARY In Rs Million REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 11,575 12,223 12.7% 13.5% 12.5% 3.5% 4.0% 4.0% 10,072 12.3% 10.6% 3.0% 2.9% 9,032 9,863 1,468 1,644 468 486 1,110 1,063 1,235 318 301 285 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 EBITDA
Slide 31: Shareholding Structure
SHAREHOLDING STRUCTURE SHARE PRICE PERFORMANCE MARKET DATA AS ON 14th AUGUST 2017 160 Market Capitalization (Rs Cr) 778.7 140 Price (Rs) 121.1 120 No. of Shares Outstanding (Cr) 6.4 100 Face Value (Rs) 10.0 80 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 52 Week High-Low (Rs) 198.0 - 74.2
Slide 32: Contact details
Mr. Vinod Ratan Gupta Mr. Arun Prakash / Mr. Nilesh Dalvi Director IR Consultant Email: vrgupta@hplindia.com Email: arun.prakash@dickensonir.com / nilesh.dalvi@dickensonir.com Contact no: +91 75069 33892 / 98192 89131
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