Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q4 FY20 Earnings Presentation
27 slides from Hpl Electric & Power's earnings presentation, Jul 9, 2020
Slide 1: Regulation 30 disclosure letter to stock exchanges
9th July, 2020 The Manager, BSE Limited Listing Department, 25th Floor, New Trading Ring, Rotunda National Stock Exchange of India Ltd. Building, Phiroze Jeejeebhoy 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 FY20 Results Update
HPL ELECTRIC & POWER LIMITED Q4 FY20 RESULTS UPDATE JULY 2020
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 FY20 - PERFORMANCE UPDATE 22 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 Facility I: Switchgear, Electronic Meters, and Parts of Gurugram Facility I: Electronic Meters Switchgear 16 million units Lighting Equipm
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 ‘4’new products’ in the Meters Category, ‘15+ new products’ in Switchgear, and ‘14 new products’ in Lighting in FY20 • Solar Electrical Products - Developed a complet
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 FY20 - Performance Update
Q4 FY20 - PERFORMANCE UPDATE
Slide 13: Q4 FY20 & Full Year FY20: YoY Performance Analysis
Q4 FY20 & FULL YEAR FY20: YoY PERFORMANCE ANALYSIS In Rs Crore NET REVENUES* & GROSS MARGIN % EBITDA & EBITDA MARGIN % # CASH PAT & CASH PAT MARGIN % # 38.1% 34.8% 12.7% 6.0% 11.6% 5.6% 353 41 21 212 27 12 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 NET REVENUES* & GROSS MARGIN % EBITDA & EBITDA
Slide 14: Q4 FY20: YoY Segment Analysis
Q4 FY20: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN REVENUE BREAK-UP - ‘B2B’ & ‘B2C’ 353 % EBIT Margin Q4 FY19 Q4 FY20 30 B2B, 30% 72 Metering 16.2% 12.5% B2C, 70% 212 59 13 Switchgear 18.7% 18.9% 68 57 Lighting 10.3% 11.8% 192 B2C includes Non-utility Metering, Switchgear, L
Slide 15: FY20: YoY Segment Analysis
FY20: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE * & EBIT MARGIN REVENUE BREAK-UP - ‘B2B’ & ‘B2C’ 1,159 % EBIT Margin FY19 FY20 110 977 B2B, 51% B2C, 49% 212 66 Metering 15.1% 14.9% 210 227 190 Switchgear 18.9% 18.6% Lighting 11.4% 11.0% 610 B2C includes Non-utility Metering, Switchgear, L
Slide 16: Q4 FY20: Performance Analysis
Q4 FY20: PERFORMANCE ANALYSIS ❑ Performance in Q4 FY20 was negatively impacted as product sales were severely hit by the Covid-19 induced disruption in March o Business was operational as usual for only 2 months during the quarter, with the month of March essentially being a washout. “Revenue loss o
Slide 17: Q4 FY20: Business Outlook
Q4 FY20: BUSINESS OUTLOOK ❑ Robust order book of Rs 367.7 crore ensures revenue visibility for the next year - o Enquiry base for Metering tenders is at a healthy level as tenders amounting to ~ Rs 2,000 crores have been floated or expected to be floated in the near-term ❑ Smart Meters to drive next
Slide 18: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs. Cr.) Q4 FY20 Q4 FY19 YoY% FY20 FY19 YoY% Net Revenue from Operations (Net of Excise) 212.2 * 352.5 -39.8% 976.5 * 1,158.5 -15.7% COGS 131.3 229.8 -42.8% 611.6 759.7 -19.5% Gross Profit 80.8 122.7 -34.2% 365.0 398.8 -8.5% Gross Margin (%) 38.1%
Slide 19: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (In Rs Cr) Mar-20 Mar-19 Particulars (In Rs Cr) Mar-20 Mar-19 Equities & Liabilities Assets Shareholder's Funds 748.7 728.5 Non-Current Assets 547.9 519.6 Equity share capital 64.3 64.3 Property, Plant & Equipment 472.2 423.6 Other Equity 684.4 664.2 Intangible
Slide 20: HPL's Retail Lighting Solutions Witnessing Good Traction
HPL’s RETAIL LIGHTING SOLUTIONS WITNESSING GOOD TRACTION “HPL” has provided turn-key “Retail Lighting Solutions” to major retail chains including “CCD, CD Essentials & Dmart.” Overall, our lighting products have been installed at more than 100 stores across the country 19 19
Slide 21: Marketing Campaigns & Activations
MARKETING CAMPAIGNS & ACTIVATIONS At the Smart Utility Week held at Delhi (March 2020) “HPL” Positioned itself as a “Make in India Brand” with a “Hi-tech & Efficient “HPL” Showcased its Strength in “Smart Metering Product Portfolio” at the MEE Exhibition at Dubai (March 2020) Solutions” to Major Pol
Slide 22: Marketing Campaigns – Amplifying Our Social Media Presence
MARKETING CAMPAIGNS – AMPLIFING OUR “SOCIAL MEDIA” PRESENCE “Garnered Over 15 Million Reach” Amplified our brand presence through Social media handles & staff trainings through digital platforms and conducted various industrial webinars 21 21
Slide 23: Business Strategy
LED Lights BUSINESS STRATEGY
Slide 24: 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 25: 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 26: Focus on Driving Healthy Growth in the Consumer B2C Business
FOCUS ON DRIVING HEALTHY GROWTH IN THE CONSUMER ‘B2C’ BUSINESS ✓ B2C business includes Non-utility Metering, Switchgear, Lighting and Wires & Cables. At present, this segment contributes ~44% of the total revenues ✓ HPL is looking to drive healthy growth in this business by using a 3-pronged approac
Slide 27: Contact details
Mr. Gautam Seth Joint Managing Director Email: gautamseth@hplindia.com Mr. Mandar Kapse / Vikash Verma IR Consultants Email: hpl@dickensonworld.com Contact no: +91 9867550004 / 9664009029