HPL Electric & Power surges 5.5% on 33% yoy growth in consumer segment in Q2FY21 results

HPL Electric and Power Ltd, an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, announced Thursday its financial results for the quarter ended September 30, 2020.

The company’s revenue from operations stood at Rs227.1cr in Q2FY21 compared to 272.0 in Q2FY20. For the first half of the year revenue from operations was at Rs323.3cr compared to Rs520.2cr in H1FY20. Cash Profit After Tax (PAT) was Rs18.2cr in Q2FY21 compared to Rs17.2cr in Q2FY20. PAT for the first half of the year was Rs9.5cr compared to Rs31.6cr in H1FY20.

EBITDA for Q2FY21 stood at Rs34cr compared to Rs35.1cr in Q2FY20. EBITDA was Rs40.6cr in H1FY21 compared to Rs65.3cr in H1FY20. EBITDA Margin in percentage for Q2FY21 was Rs14.9% compared to 12.9% in Q2FY20. EBITDA margin was 12.6% in H1FY21 compared to 12.6% in H1FY20.


“Performance for the Q2FY21 was supported by the strong growth in the ‘Consumer’ segment. Metering business remained subdued as inspections were delayed resulting in lower dispatches for the quarter. A significant portion of dispatches were deferred to forthcoming quarters. Meter dispatches are expected to pick-up pace from Q4 FY21 onwards,” company said.

The consumer segment (including non-utility meters) grew at a brisk pace of 33% yoy (26% yoy excluding non-utility meters) driven by a revival in the economic activity, network expansion and offering of wide basket of quality products to consumers. Revenue share of the ‘Consumer’ segment stood significantly higher at 64% in Q2FY21 vs 40% in Q2FY20.

“Our performance in the second quarter was far better supported by the robust growth in the consumer segment. Rationalization of operating costs, employee costs and marketing expenses helped boost our EBITDA margins. This has helped us to get back to almost pre-covid level of revenue and EBITDA. Robust growth in the consumer segment was driven by strong double-digit growth in the ‘lighting’ and wires & cables categories which grew by 33% yoy and 45% yoy respectively. Further, the ‘switchgear’ segment also witnessed improved traction and achieved high-single digit growth in Q2 FY21,” Gautam Seth, Joint Managing Director, said.

At present, we have a robust order book of Rs335cr. This ensures revenue visibility for the rest of the fiscal year. Going forward, with festive season upon us coupled with gradual pick-up in economic activity, we expect the growth momentum in our consumer segment to continue in H2FY21. Even though meter dispatches have remained slow in H1FY21, we are expecting meter dispatches to gradually pick-up pace from Q4FY21 onwards,” Seth added.