HPL Electric expects strong growth in metering business to continue

HPL Electric, which experienced healthy growth in its metering business during the first quarter (April to June) of current fiscal year, FY20, expects the growth momentum to continue.

According to Gautam Seth, Joint Managing Director, HPL Electric & Power Ltd, “We expect our lighting and metering segments to see strong growth on a sequential basis in Q2. We are also optimistic of seeing good traction across our business segments in the second half of this year as the economic conditions gradually improve. Further, the company is fully geared up to meet the government’s ambitious target of smart meters which can truly be a game changer providing enormous growth potential.”

Seth also observed that the enquiry base for metering tenders were at a healthy level, which provided good visibility and positive outlook for the coming quarters.

HPL Electric & Power reported a double-digit (10 per cent) year-on-year growth in revenues of its metering business during the first quarter of FY20. By the same comparison, the switchgear gear business grew steadily at 2 per cent. On the other hand, the lighting and wires & cables divisions showed muted revenue growth during the quarter.

On the financial performance, Seth remarked, “During the quarter, we reported resilient financial performance along with an improvement in operating profitability, despite being faced with weak industry demand and a challenging economic environment. Our metering business continued to post robust growth backed by timely execution of orders.”

Order book

HPL Electric’s consolidated order book position as of August 9, 2019, stood at Rs.508.40 crore with the metering business accounting for Rs.486.50 crore, or nearly 96 per cent. The order book for the other businesses stood at: switchgear (Rs.10.00 crore), lighting (Rs.9.30 crore) and wires & cables (Rs.2.60 crore).

(Featured photograph shows single-phase meters by HPL Electric & Power Ltd)