Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q2 & H1 FY23 Earnings Presentation
30 slides from Hpl Electric & Power's earnings presentation, Nov 11, 2022
Slide 1: Regulation 30 disclosure letter to stock exchanges
11th November, 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 Sym
Slide 2: HPL Electric & Power Limited Q2 & H1FY23 Results Update
HPL ELECTRIC & POWER LIMITED Q2 & H1FY23 RESULTS UPDATE November 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 Q2 & H1FY23 - 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 Switchgear Category and 5 in Tradelight in Q2FY23 Switchgear APFC Panel SDE Series Contactor(Contactor & Relays) Starter Trade Lighting IN-HOUS
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: Q2 & H1FY23 - Performance Update
Q2 & H1FY23 - PERFORMANCE UPDATE
Slide 13: H1FY23 Salient Highlights
H1FY23 SALIENT HIGHLIGHTES ❑ The Company registered robust double-digit growth as revenue increased by 46.3% in H1FY23. ❑ EBITDA registered a sharp increase of 79.0% where EBITDA is Rs. 75.5 crores in H1FY23. ❑ Profit Before Tax stood strong at 19.2 crore in H1FY23. ❑ Profit After Tax stood strong a
Slide 14: Q2 & H1FY23: YoY Performance Analysis
Q2 & H1FY23 : YoY PERFORMANCE ANALYSIS Q2FY23 In Rs Crore NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PAT & CASH PAT MARGIN % 33.8% Gross Margin 33.8% 11.6% 12.5% 6.0% 302 5.5% 280 32 38 Net Revenue 16.8 16.5 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 NET REVENUES & GROSS MARGIN % EBI
Slide 15: Q2FY23: YoY Segment Analysis
Q2FY23: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN % EBIT Margin Q2 FY22 Q2 FY23 302.3 279.8 Metering & 9.3% 13.4% 140 147 Systems Consumer & 12.2% 11.7% 163 Industrial 133 Q2 FY22 Q2 FY23 SEGMENT REVENUE SHARE % Q2 FY22 Q2 FY23 Metering & Systems 47% 46% 53% 54% Consumer & I
Slide 16: H1FY23: YoY Segment Analysis
H1FY23 : YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN % EBIT Margin H1 FY22 H1 FY23 597.9 8.0% 13.2% 408.8 288 Metering & Systems 225 310 Consumer & 8.9% 11.9% 184 Industrial H1 FY22 H1 FY23 SEGMENT REVENUE SHARE % H1 FY22 H1 FY23 45% 48% Metering & Systems 55% 52% Consumer & I
Slide 17: Q2 & H1FY23: Performance Analysis
Q2 & H1FY23: PERFORMANCE ANALYSIS Strong Performance in Q2FY23 led by robust performance in the metering and systems segment. o The Company registered a strong performance YoY and revenue surged by 46.3% in H1FY23 to Rs. 597.9 crore as compared to Rs. 408.8 crore in H1FY22. Revenue increased by 8.%
Slide 18: Update & Business Outlook
UPDATE & BUSINESS OUTLOOK ❑ Healthy enquiries leading to a strong and stable order book for the company. The company executes the current order on fast-track mode to maintain a healthy execution of current pipeline. ❑ The Company is approved as a bidder through tender participation for the appointme
Slide 19: Expanding Its Global Footprint
EXPANDING ITS GLOBAL FOOTPRINT HPL’s Global Network HPL exports continues to see a growth of 19% Year on Year in H1FY23. HPL’s pending order book gives a good near-term sales visibility in the coming quarters. HPL’s in house R&D strength to enable higher exports. o HPL is present in 42+ countries ac
Slide 20: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs. Crore) Q2 FY23 Q2 FY22 YoY% H1 FY23 H1 FY22 QOQ% FY22 Net Revenue from Operations 302.3 279.8 8.0% 597.9 408.8 46.3% 1014 COGS 200.2 185.2 8.1% 396.6 264.7 49.9% 652.7 Gross Profit 102.1 94.6 7.9% 201.3 144.1 39.6% 361.3 Gross Margin (%) 33.8%
Slide 21: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (In Rs Cr) Sept-22 Mar-22 Particulars (In Rs Cr) Sept-22 Mar-22 Equities & Liabilities Assets Shareholder's Funds Non-Current Assets 491.8 502.5 775.8 764.5 Property, Plant & Equity share capital 64.3 64.3 Equipment 443.5 437.6 Other Equity 711.5 700.2 CWIP 3.8
Slide 22: 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 21 21
Slide 23: Elite Channel Connects & Dealer Meets
ELITE CHANNEL CONNECTS & DEALER MEETS Retailer Meet, Bhavnagar Ahmedabad Builder’s Meet - Nagpur 22 Dealer’s Meet - Trichur, Kerela Retailer's Meet, Jaipur Rajasthan 22
Slide 24: Elite Channel Connects & Brand Visibility
ELITE CHANNEL CONNECTS & BRAND VISIBILITY Retailers Meet-Rajkot Retailers Meet – Jaipur, Rajasthan Hoarding At Nagpur HPL’S Retail Activity Retailer Meet – Cuttack, Orissa 23 23
Slide 25: Spreading the Brand Presence
SPREADING THE BRAND PRESENCE Solar Exhibition – Renewable Energy India Expo Address- Hall No.3, Stall No. 3143 India Expo Mart, Greater Noida (NCR) 24
Slide 26: Business Strategy
LED Lights BUSINESS STRATEGY
Slide 27: 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 28: 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 29: 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 30: 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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