Hpl Electric & Power Limited · NSE:HPL
Hpl Electric & Power — Q4 FY22 Earnings Presentation
29 slides from Hpl Electric & Power's earnings presentation, May 26, 2022
Slide 1: Regulation 30 disclosure cover letter to stock exchanges
26th May, 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 Symbol:
Slide 2: HPL Electric & Power Limited Q4 FY22 Results Update
HPL ELECTRIC & POWER LIMITED Q4 FY22 RESULTS UPDATE MAY 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 Q4 FY22 - PERFORMANCE UPDATE 23 BUSINESS STRATEGY
Slide 5: Company Overview
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 ‘11 new products’ in the Meters Category, ‘7 new products’ in Switchgear, and ‘21 new products’ in Lighting in FY22 • Solar Electrical Products - Developed a complete
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 & FY22 - Performance Update
Q4 & FY22 - PERFORMANCE UPDATE
Slide 13: Q4 & FY22: YoY Performance Analysis
Q4 & FY22 : YoY PERFORMANCE ANALYSIS Q4 In Rs Crore NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PAT & CASH PAT MARGIN % 38.0% 35.4% 14.2% 14.0% 9.3% 8.9% 308 325 44 46 29 29 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 NET REVENUES & GROSS MARGIN % EBITDA & EBITDA MARGIN % CASH PA
Slide 14: Q4 FY22: YoY Segment Analysis
Q4 FY22: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN REVENUE BREAK-UP - ‘UTILITY’ (B2B) & ‘CONSUMER’ (B2C) 308 325 % EBIT Margin Q4 FY21 Q4 FY22 Utility (B2B), 31% 26 50 Metering 16.3% 17.4% Consumer (B2C), 89 82 69% Switchgear 19.0% 19.1% 51 64 Lighting 11.3% 10.6% 142 Consum
Slide 15: FY22: YoY Segment Analysis
FY22 : YoY SEGMENT ANALYSIS In Rs Crore SEGMENT NET REVENUE & EBIT MARGIN REVENUE BREAK-UP - ‘UTILITY’ (B2B) & ‘CONSUMER’ (B2C) 1014 % EBIT Margin FY21 FY22 875 Utility (B2B), 34% 143 Metering 14.4% 13.6% 83 Consumer (B2C), 260 66% 251 Switchgear 16.6% 15.2% 161 206 Lighting 9.6% 9.1% Consumer (B2C)
Slide 16: Q4 & FY22: Performance Analysis
Q4 & FY22: PERFORMANCE ANALYSIS Good Performance in Q4 FY22 led by robust growth in Switchgear and Wire and cable segment. o The Company crossed the milestone of Rs. 1,000 cr + revenue despite the challenging economic environment. o Revenue has surged by 16% YOY to Rs. 1,014 crore in FY22 as compa
Slide 17: Update & Business Outlook
UPDATE & BUSINESS OUTLOOK Strong order book of ₹ 748 crore ensures revenue visibility for the short and medium term. o HPL current order book stood at Rs. 337 crores for meter segment. o Enquiry base for Metering tenders is at a healthy level as tenders amounting to ~ ₹ 1,500 cr + have been floate
Slide 18: Expanding Its Global Footprint
EXPANDING ITS GLOBAL FOOTPRINT Exports (In Rs Crore) HPL’s Global Network HPL stall at MEE, Dubai in March’ 22 49 33 FY21 FY22 HPL’s in house R&D strength to enable higher exports. o HPL’s LV switchgear testing laboratory in Jabli, Himachal Pradesh is accredited with IECEE certification for independ
Slide 19: Consolidated Profit & Loss Statement
CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (In Rs. Cr.) Q4 FY22 Q4 FY21 YoY% FY22 FY21 YoY% Net Revenue from Operations 325.1 307.8 6.0% 1014 875.1 16.0% COGS 209.9 190.7 10.1% 652.7 551.8 18.3% Gross Profit 115.2 117.1 -1.6% 361.3 323.3 11.7% Gross Margin (%) 35.4% 38.0% -260bps 35.6% 36.9% -
Slide 20: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (In Rs Cr) Mar-22 Mar-21 Particulars (In Rs Cr) Mar-22 Mar-21 Equities & Liabilities Assets Shareholder's Funds 764.5 758.3 Non-Current Assets 502.1 510.9 Equity share capital 64.3 64.3 Property, Plant & Equipment 440.3 450.9 Other Equity 700.2 694.0 Intangible
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
RAISING THE BRAND VISIBILITY QUOTIENT Reinforcing the Presence in ecommerce and Modern Trade along with BTL activities. 600+ Dealer & Retailer Boards & In-shop branding HPL Board at Raipur HPL Board at Ahmedabad 21 HPL Board at Kolkata HPL Exhibition at Nagpur 21
Slide 23: Channel Connects & Dealer Meets
CHANNEL CONNECTS & DEALER MEETS Organized Top Dealer Meets in 15 cities in FY22 with over 450 dealers HPL dealers/customer meet in Ghana & Nigeria, Africa in February 2022 22 22
Slide 24: Sponsorships & Campaigns
Sponsorships & Campaigns Organized Kites festival campaign in Ahmedabad ‘HPL Electric Cup’ - Shyamnagar Football Festival, West Bengal – March 2022 23 23
Slide 25: Business Strategy
BUSINESS STRATEGY
Slide 26: 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 27: 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 28: 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 29: Contact details
Mr. Gautam Seth Joint Managing Director & CFO Email: gautamseth@hplindia.com Mr. Sonam Raghuvanshi Associate Director, Dickenson World Email: hpl@dickensonworld.com Contact no: +91 8591190903