Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q3 FY2023 Earnings Presentation
29 slides from Hpl Electric & Power's earnings presentation, Feb 14, 2023
Slide 1: Regulation 30 disclosure cover letter to stock exchanges
14th February, 2023 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 Sym
Slide 2: HPL Electric & Power Limited Q3 & 9MFY23 Results Update
HPL ELECTRIC & POWER LIMITED Q3 & 9MFY23 RESULTS UPDATE February 2023
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 & 9MFY23 - 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 Switchgear APFC panel Edeno - New range of Modular Switch Nepal Electrotech Exhibition Trade Lighting IN-HOUSE R&D CAPABILITIES: • 2 R&D facilities in Gurugram & Kundli with mor
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 & 9MFY23 - Performance Update
Q3 & 9MFY23 - PERFORMANCE UPDATE
Slide 13: 9MFY23 Salient Highlights
9MFY23 SALIENT HIGHLIGHTES ❑ The Company registered robust double-digit growth as revenue increased by 30.6% in 9MFY23. ❑ EBITDA registered a sharp increase of 41.26% where EBITDA is Rs. 112.3 crores in 9MFY23. ❑ Profit Before Tax stood strong at 29.2 crore in 9MFY23. ❑ Profit After Tax stood strong
Slide 14: Q3 & 9MFY23: YoY Performance Analysis
Q3 & 9MFY23 : YoY PERFORMANCE ANALYSIS Q3FY23 In Rs Crore NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PAT & CASH PAT MARGIN % 36.4% Gross Margin 33.8% 13.3% 12.2% 7.6% 280 302 4.9% 37.3 36.8 Net Revenue 21.2 14.7 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Q3FY22 Q3FY23 NET REVENUES & GROSS MARGIN %
Slide 15: Q3FY23: YoY Segment Analysis
Q3FY23: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN % EBIT Margin Q3 FY22 Q3 FY23 301.6 280 Metering & 14.5% 13.9% 133 Systems 165 Consumer & 11.1% 11.5% 169 Industrial 115 Q3 FY22 Q3 FY23 SEGMENT REVENUE SHARE % Q3 FY22 Q3 FY23 Metering & Systems 41% 44% 59% 56% Consumer & In
Slide 16: 9MFY23: YoY Segment Analysis
9MFY23 : YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN 899.5 688.8 % EBIT Margin 9M FY22 9M FY23 421 389 10.5% 13.4% Metering & Systems 478 300 Consumer & 9.8% 11.8% Industrial 9M FY22 9M FY23 SEGMENT REVENUE SHARE % 9M FY22 9M FY23 43% 47% Metering & Systems 57% 53% Consumer &
Slide 17: Q3 & 9MFY23: Performance Analysis
Q3 & 9MFY23: PERFORMANCE ANALYSIS Strong Performance in Q3 & 9MFY23 led by robust performance in the metering and systems segment. o The Company registered a strong performance YoY and revenue surged by 30.6% in 9MFY23 to Rs. 899.5 crore as compared to Rs. 688.8 crore in 9MFY22. Revenue increased by
Slide 18: Update & Business Outlook
UPDATE & BUSINESS OUTLOOK ❑ The Company has received a significant order, worth Rs.161.59 crore, for the supply of smart meters to serve a market-leading private DISCOM player. This win underscores the Company’s dominant market position in the smart metering space and fortifies its reputation as a s
Slide 19: Expanding Its Global Footprint
EXPANDING ITS GLOBAL FOOTPRINT HPL’s Global Network HPL orders continues to see good growth 0f over 20%. HPL’s pending order book gives a good near-term sales visibility in the coming quarters. Nepal Exhibition- Electrotech HPL’s in house R&D strength to enable higher exports. o HPL is present in 42
Slide 20: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs. Crore) Q3 FY23 Q3 FY22 YoY% 9M FY23 9M FY22 QOQ% FY22 Net Revenue from Operations 301.6 280.0 7.7% 899.5 688.8 30.6% 1014 COGS 199.6 178.1 12.1% 596.2 442.7 34.7% 652.7 Gross Profit 102.0 102.0 0.05% 303.3 246.1 23.24% 361.3 Gross Margin (%) 3
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: Dealer Meets & Marketing Activity
DEALER MEETS & MARKETING ACTIVITY Electrician Meet, Trichur Nukkad Meet, Mangrupur Retailer Meet, Ahmedabad Nukkad Meet, Sultnapur Electrician Meet, Cochin 21 21
Slide 23: Elite Channel Connects & Brand Visibility
ELITE CHANNEL CONNECTS & BRAND VISIBILITY HPL Sponsor at Orissa – Bali Yatra (Chief Guest – Orissa Governor) HPL was Awarded with the Best Brand by Orissa Governor 22 22
Slide 24: Spreading the Brand Presence
SPREADING THE BRAND PRESENCE Nepal Dealer – Kundli Plant Visit Bangladesh Dealer Meet Nepal Exhibition- Electrotech Participated in Northern Central Railway Participated in All India MES Builder Product display at MC Polytechnic, Seminar, Prayagraj Association at Greater Noida Jalandhar 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 Ms. Shankhini Saha Associate Director, Dickenson World Mr. Chintan Mehta Director, Dickenson World Email: hpl@dickensonworld.com
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