Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q2 FY22 Earnings Presentation
28 slides from Hpl Electric & Power's earnings presentation, Nov 10, 2021
Slide 1: Regulation 30 disclosure cover letter to exchanges
10th November, 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 Sym
Slide 2: HPL Electric & Power Limited Q2 & H1 FY22 Results Update
HPL ELECTRIC & POWER LIMITED Q2 & H1 FY22 RESULTS UPDATE NOVEMBER 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 Q2 & H1FY22 - PERFORMANCE UPDATE 23 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 ‘3 new products’ in the Meters Category, ‘3 new products’ in Switchgear, and ‘5 new products’ in Lighting in Q2 FY22 • Solar Electrical Products - Developed a complet
Slide 10: 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 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 & H1FY22 - Performance Update
Q2 & H1FY22 - PERFORMANCE UPDATE
Slide 13: Q2 & H1FY22: YoY Performance Analysis
Q2 & H1FY22 : YoY PERFORMANCE ANALYSIS In ₹ Crore NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PROFIT * 37.4% 33.8% 15.0% 11.6% 280 227 34 32 19 17 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PROFIT * 36.1% 35.3% 12.6% 10
Slide 14: Q2 FY22: YoY Segment Analysis
Q2 FY22: YoY SEGMENT ANALYSIS In ₹ Crore SEGMENT NET REVENUE & EBIT MARGIN Net Revenue % EBIT Margin 280 Particulars Q2 FY21 Q2 FY22 % Change Q2 FY21 Q2 FY22 35 227 Metering 114 93 22% 16.8% 11.4% 23 66 69 Switchgear 64 42 53% 18.4% 15.3% 65 42 Lighting^ 66 69 -4% 10.1% 9.6% 93 114 Wires & Cables 35
Slide 15: H1 FY22: YoY Segment Analysis
H1 FY22 : YoY SEGMENT ANALYSIS In ₹ Crore SEGMENT NET REVENUE & EBIT MARGIN Net Revenue % EBIT Margin Particulars 409 H1 FY21 H1 FY22 % Change H1 FY21 H1 FY22 54 Metering 324 129 163 27% 12.4% 9.4% 37 104 Switchgear 61 88 44% 13.1% 11.7% 97 88 61 Lighting 97 104 7% 7.8% 7.3% 129 163 Wires & Cables 3
Slide 16: Q2 & H1FY22: Performance Analysis
Q2 & H1FY22: PERFORMANCE ANALYSIS ❑ Elated Q2 FY22 performance across segments o During the quarter, the overall revenues grew by 23% YoY to ₹ 280 crores led by revival in consumer sentiments due to phase wise opening of economy, festive seasons sales coupled with the Government’s aggressive vaccina
Slide 17: Update & Business Outlook
UPDATE & BUSINESS OUTLOOK ❑ Strong order book of ₹ 859 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 commence in Q3FY22 making meaningful contributions
Slide 18: Expanding Its Global Footprint
EXPANDING ITS GLOBAL FOOTPRINT Exports (In ₹ Crore) HPL’s Global Network 23 15 H1 FY21 H1 FY22 o Exports surged by 51% YoY to ₹ 23 Crores in H1 FY22 due to lower base & despite of COVID-19 restrictions in several countries. o The Exports Order book stands at ₹ 25 Crores as on date. The Company has b
Slide 19: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In ₹ Cr.) Q2 FY22 Q2 FY21 YoY% H1 FY22 H1 FY21 QoQ% FY21 # Net Revenue from Operations 279.8 227.1 23.2% 408.8 323.3 26.5% 875.1 COGS 185.2 142.2 30.2% 264.7 206.7 28.0% 551.8 Gross Profit 94.6 84.8 11.4% 144.1 116.5 23.7% 323.3 Gross Margin (%) 33.8
Slide 20: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (In ₹ Cr) Sep-21 Mar-21 Particulars (In ₹ Cr) Sep-21 Mar-21 Equities & Liabilities Assets Shareholder's Funds 742.6 758.3 Non-Current Assets 509.6 510.9 Equity share capital 64.3 64.3 Property, Plant & Equipment 435.0 450.9 Other Equity 678.3 694.0 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: 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: Channel Connects, Dealer Meets & Trade Exhibition
CHANNEL CONNECTS, DEALER MEETS & TRADE EXHIBITION Organized Top Dealer Meets in Jaipur, Jodhpur and Ahmedabad in Q2 FY22 with over 175 dealers Showcasing emerging Solar Products at REI Exhibition, India Expo Mart, Greater Noida, 15-17 September 2021 22 22
Slide 24: Business Strategy
LED Lights BUSINESS STRATEGY
Slide 25: 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 26: 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 crore smart meters across India – ‘which transla
Slide 27: 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 28: Contact details
Mr. Gautam Seth Joint Managing Director Email: gautamseth@hplindia.com Mr. Mehul Mehta / Hiral Keniya IR Consultants, Dickenson World Email: hpl@dickensonworld.com Contact no: +91 9820280325 / 9029662801