HPL Electric & Power Limited announced unaudited Financial Results for the quarter ended June 30, 2020 after the Board of Directors meeting on September 14, 2020.
The company on consolidated base shows reduction in income over last year same quarter, the decrease is of about 61.25% and Profit After Tax (PAT) reduces by 490.27%.
The key points from the consolidated unaudited results are:
The major contribution in income is from Metering segment i.e. INR 3528.38 lakh followed by Lightening segment i.e. INR 2824.25 lakh followed by Switchgear segment i.e. 1910.64 lakh.
Performance for the first quarter was significantly impacted by the nation-wide lockdown in April & May, and the on-going Covid-19 led disruption. Essentially, the company did business only for little more than a month in Q1 FY21
The ‘Consumer’ segment has seen a pick-up in demand from June 2020 onwards, led by the lighting & cables category. In fact, lighting, and wires & cables sales in June 2020 was higher than the sales in June 2019 and February 2020.
Mr. Gautam Seth, Joint Managing Director, said, “Our performance for the first quarter was acutely impacted by the prolonged country-wide lockdown, a challenging & uncertain economic environment and intermittent localised lockdowns in many areas of operations. However, we adjusted to this new reality well, by undertaking concerted efforts to bring down our operating costs. This held us in good stead as we were able to reduce our operating expenses by ~60% YoY and achieved a positive EBITDA of ₹ 6.6 crore in Q1 FY21. Adjusting the revenue loss/deferral on account of the pandemic, our revenue and profitability in Q1 FY21 would have been substantially higher than reported.
On a positive note, as the macro scenario continues to improve, we have seen healthy traction in our consumer segment from June’20 onwards. Meter dispatches have also resumed albeit at a gradual pace. Our leverage position and liquidity profile continue to remain comfortable.
Looking ahead, we have a strong order book position of ₹ 327 crore, boosted by the receipt of smart meter orders worth ₹ 90 crore in May 2020. This ensures revenue visibility for the rest of the fiscal year. Furthermore, unless there are any further lockdowns, we expect to see a good demand pick-up in our ‘Consumer segment’ from Q2 FY21 onwards, as the opening-up of the economy gains pace with the announcement of Un-lock 4 guidelines supported by the on-set of the festival season, and higher government spending.
Meter dispatches are also expected to pick-up from H2 FY21 onwards. A silver lining amidst this Covid-19 induced storm is that the significance for rapid adoption of the smart meters has been reinforced. It is no longer bone of contention, as both SEBs & Private Discoms gear-up towards replacing a substantial quantum of conventional meters with smart meters going forward.
Hence, looking beyond the near-term challenges, we expect the ‘smart meters’ segment to witness robust traction in the medium-to-long term, driving the next leg of growth for our company. Furthermore, we will also see healthy traction in our ‘Consumer’ segment, as the consumption demand, infrastructure, and real estate sectors witness a gradual revival. On the whole, we remain confident of driving sustainable growth in the medium-term.
Consolidated current order book stands at ₹ 327.0 crores (net of GST)
HPL is an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, including, metering solutions, switchgears, lighting equipment and wires and cables, catering to consumer and institutional customers in the electrical equipment industry. HPL had the largest market share in the electricity energy meters market in India, with one of the widest portfolios of meters in India and the fifth largest market share for LED lamps during the corresponding period (Source: Frost & Sullivan Report, February 2016). HPL’s manufacturing capabilities are supported by a large sales and distribution network with a pan-India presence. HPL currently manufactures and sells its products under the umbrella brand ‘HPL’, which has been registered in India since 1975.
News Source : Inergystat