Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q3 FY22 Earnings Presentation
27 slides from Hpl Electric & Power's earnings presentation, Feb 11, 2022
Slide 1: Regulation 30 disclosure cover letter to exchanges
11th February, 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 Q3 & 9M FY22 Results Update
HPL ELECTRIC & POWER LIMITED Q3 & 9M FY22 RESULTS UPDATE FEBRUARY 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 12 Q3 & 9MFY22 - PERFORMANCE UPDATE 22 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 ‘3 new products’ in Lighting in Q3 FY22 • Solar Electrical Products - Developed a complet
Slide 10: Smart Meter: The Way Ahead
SMART METER: THE WAY AHEAD Advantages of HPL Electric Smart Meters 9 9
Slide 11: Established Pan-India Distribution Network & Brand Presence
ESTABLISHED PAN-INDIA DISTRIBUTION NETWORK & BRAND PRESENCE ESTABLISHED PAN-INDIA DISTRIBUTION NETWORK & BRAND PRESENCE TO CAPTURE SIGNIFICANT GROWTH POTENTIAL IN Head Office ELECTRICAL EQUIPMENT INDUSTRY Branch Office Works 90+ Branch & Representative Offices 16 Warehouses across India 900+ Authori
Slide 12: 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 13: Q3 & 9MFY22 Performance Update
Q3 & 9MFY22 - PERFORMANCE UPDATE
Slide 14: Q3 & 9MFY22: YoY Performance Analysis
Q3 & 9MFY22 : YoY PERFORMANCE ANALYSIS In ₹ Crore NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PROFIT * 36.8% 36.4% 14.2% 13.3% 244 280 35 37 19 21 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PROFIT * 36.4% 35.7% 13.3% 11
Slide 15: Q3 FY22: YoY Segment Analysis
Q3 FY22: YoY SEGMENT ANALYSIS In ₹ Crore SEGMENT NET REVENUE & EBIT MARGIN 280 Net Revenue % EBIT Margin Particulars 244 39 Q3 FY21 Q3 FY22 % Change Q3 FY21 Q3 FY22 20 74 Metering 109 113 3% 14.5% 15.6% 65 54 Switchgear 49 54 9% 18.4% 16.4% 50 Lighting 65 74 14% 10.1% 10.0% 109 113 Wires & Cables 20
Slide 16: 9M FY22: YoY Segment Analysis
9M FY22: YoY SEGMENT ANALYSIS In ₹ Crore SEGMENT NET REVENUE & EBIT MARGIN 689 Net Revenue % EBIT Margin Particulars 93 568 9M FY21 9M FY22 % Change 9M FY21 9M FY22 57 178 Metering 238 276 16% 13.3% 11.9% 162 Switchgear 111 142 28% 15.5% 13.5% 142 111 Lighting 162 178 10% 8.7% 8.4% 238 276 Wires & C
Slide 17: Q3 & 9M FY22: Performance Analysis
Q3 & 9M FY22: PERFORMANCE ANALYSIS ❑ Strong Q3 FY22 performance across segments o During the quarter, the overall revenues grew by 15% YoY to ₹ 280 Crores backed by re-opening of the economy and the Government’s aggressive vaccination drive lifting up consumer sentiments. o The Metering business rev
Slide 18: Update & Business Outlook
UPDATE & BUSINESS OUTLOOK ❑ Strong order book of ₹ 879 crore ensures revenue visibility - o HPL has ‘smart meter orders’ worth ₹ 270+ crores which is expected to be executed in the coming quarters. o The Government is expected to float ~ ₹ 10,000 crores (existing and tenders in pipeline) Metering te
Slide 19: Expanding Its Global Footprint
EXPANDING ITS GLOBAL FOOTPRINT Exports (In ₹ Crore) HPL’s Global Network 35 25 9MFY21 9MFY22 o Exports surged by 25% YoY in Q3 FY22 and 41% YoY in 9M FY22 on a low base & despite of COVID-19 restrictions in several countries. o The Exports Order book remains strong owing to diversified product mix.
Slide 20: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In ₹ Cr.) Q3 FY22 Q3 FY21 YoY% 9M FY22 9M FY21 YoY% FY21 # Net Revenue from Operations (Net of Excise) 280.0 244.0 14.8% 688.8 567.3 21.4% 875.1 COGS 178.1 154.3 15.4% 442.7 361.0 22.6% 551.8 Gross Profit 102.0 89.7 13.7% 246.1 206.2 19.3% 323.3 Gros
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: Raising the Brand Visibility Quotient via Advertising & PR Activities
RAISING THE BRAND VISIBILITY QUOTIENT VIA ADVERTISING & PR ACTIVITIES Reinforcing the Presence in the ecommerce and Modern Trade along with BTL activities PR Initiatives across Digital & Print media platform 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 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 27: Contact details
Mr. Gautam Seth Joint Managing Director Email: gautamseth@hplindia.com Mr. Chintan Mehta / Hiral Keniya IR Consultants, Dickenson World Email: hpl@dickensonworld.com Contact no: +91 9892183389 / 9029662801