Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q1 FY22 Earnings Presentation
26 slides from Hpl Electric & Power's earnings presentation, Aug 12, 2021
Slide 1: Stock exchange disclosure letter, Regulation 30
12th August, 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 Symbo
Slide 2: HPL Electric & Power Limited Q1 FY22 Results Update
HPL ELECTRIC & POWER LIMITED Q1 FY22 RESULTS UPDATE AUGUST 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 Q1 FY22 - PERFORMANCE UPDATE 21 BUSINESS STRATEGY
Slide 5: Company Overview
Smart Meter COMPANY OVERVIEW
Slide 6: Profile
PROFILE Market Leader in Electric Meters Formidable Player in On-load Change-over ▪ ‘50% Market Share’ in the Domestic On-load Change-over Switches Switches Market * ▪ ‘5% Market Share’ in the Low-voltage Switchgear Market * ▪ ‘20% Market Share’ in Domestic Electric Meters Market * ▪ ‘5th Largest’ L
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 ‘2 new products’ in the Meters Category, ‘2 new products’ in Switchgear, and ‘10 new products’ in Lighting in Q1 FY22 • Solar Electrical Products - Developed a comple
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: Q1 FY22 Performance Update
Q1 FY22 - PERFORMANCE UPDATE
Slide 13: Q1 FY22: YoY Performance Analysis
Q1 FY22 : YoY PERFORMANCE ANALYSIS In ₹ Crore NET REVENUES # & GROSS MARGIN % EBITDA & EBITDA MARGIN % # CASH PROFIT #* 38.4% 33.0% 6.9% 7.6% -8 -6 129 Q1 FY21 Q1 FY22 96 10 7 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 NET REVENUES # & GROSS MARGIN % EBITDA & EBITDA MARGIN % # CASH PROFIT & MARGIN % #* 37.4% 3
Slide 14: Q1 FY22: YoY Segment Analysis
Q1 FY22: YoY SEGMENT ANALYSIS In ₹ Crore SEGMENT NET REVENUE & EBIT MARGIN # REVENUE BREAK-UP - ‘UTILITY’ (B2B) & ‘CONSUMER’ (B2C) % EBIT Margin Q1 FY21 Q1 FY22 129 Utility (B2B), 33% Metering 0.7% 4.7% 96 18 Consumer (B2C), 67% 14 38 Switchgear 1.6% 2.1% 28 24 Lighting 2.3% 3.2% 19 Consumer (B2C) S
Slide 15: FY21: YoY Segment Analysis
FY21 : YoY SEGMENT ANALYSIS In ₹ 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 Consume
Slide 16: Q1 FY22: Performance Analysis
Q1 FY22: PERFORMANCE ANALYSIS ❑ Q1 FY22 performance impacted by COVID-19 restrictions and lockdowns o During the quarter, the overall revenues grew by 34% YoY to ₹ 129 Crores though on a lower base as compared to the corresponding quarter last year. Notwithstanding the lockdown & Covid-19 disruption
Slide 17: Update & Business Outlook
UPDATE & BUSINESS OUTLOOK ❑ Strong order book of ₹ 685 crore ensures revenue visibility - o The commencement of execution on ₹ 372 crores order for switchgear, wires and other related accessories for housing project in Andhra Pradesh is expected to make meaningful contributions in FY22. o HPL has ‘s
Slide 18: Expanding Its Global Footprint
EXPANDING ITS GLOBAL FOOTPRINT Exports (In ₹ Crore) HPL’s Global Network 11 6 Q1 FY21 Q1 FY22 37 o Exports surged by 71% YoY to ₹ 11 Crores in Q1 FY22. 21 o The Exports Order book stands at ₹ 25 Crores as on date. Recently, the Company has bagged a single largest export order worth ₹ 11 crores. FY20
Slide 19: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In ₹ Cr.) Q1 FY22 # Q1 FY21 # YoY% Q4 FY21 QoQ% FY21 # Net Revenue from Operations (Net of Excise) 129.0 96.2 34.1% 307.8 -58.1% 875.1 COGS 79.4 64.5 23.2% 190.7 -58.4% 551.8 Gross Profit 49.6 31.7 56.4% 117.1 -57.7% 323.3 Gross Margin (%) 38.4% 33.0
Slide 20: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (In ₹ Cr) Mar-21 Mar-20 Particulars (In ₹ 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 A
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: Business Strategy
LED Lights BUSINESS STRATEGY
Slide 23: 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 24: 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 25: 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 26: Contact details
Mr. Gautam Seth Joint Managing Director Email: gautamseth@hplindia.com Mr. Vikash Verma / Hiral Keniya IR Consultants, Dickenson World Email: hpl@dickensonworld.com Contact no: +91 9664009029 / 9029662801