There is a clear shift from conventional energy meters and electronic meters to smart meters, according to Gautam Seth, Joint Managing Director, HPL Electric & Power Ltd. Seth was addressing an investor conference discussing the company’s recent financial performance.
Responding to a question regarding smart energy meters, Seth noted that 50-60 per cent of the company’s current order book related to smart meters. Two quarters ago, this share was around one-third, he said.
Seth noted that the company’s current capacity was 11 million meters per year. Though this capacity is spread across various types of meters, suitable adjustments can be made so that the capacity is in tune with the order book position for energy meters. This adjustment does not involve much capital expenditure, Seth noted.
Even in the tenders that HPL Electric has participated and the new tenders that are being issued, majority share is for smart meters. The industry is in transition stage and as the industry changes, so does the company’s capacity utilization and adoption, he said.
HPL Electric’s current order book position for smart meters is around Rs.250 crore. In the near future, the company expects that tenders worth Rs.5,000 crore will be issued for smart meters. In this, the company hopes to retain its market share of 20-25 per cent, which has been the long-term average, Seth said.
The outstanding order book for smart meters is currently around half of that of the company’s metering business.
Also read: HPL Electric & Power Reports Strong Order Book Of Rs.859 Crore
During Q2 (July to September) of FY22, revenue from the metering business grew 22 per cent year-on-year to reach Rs.114 crore. This growth momentum was likely to continue during H1 of FY22 in keeping with the government’s target of installing 25 crore smart meters pan-India, by end of 2025. Specifically, by December 2023, around 10 crore meters are expected to be installed.
Gautam Seth also observed that the recent Electricity Bill 2021 aims to relicense, power distribution, facilitating, the level playing field for private players whereby empowering consumers to select for the service provider. The company sees this as a growth opportunity. To this effect, it may be mentioned that HPL Electric recently won a smart meter order worth Rs.179 crore from a large private utility in a state in eastern India.
(This story is based on the transcript of a recent HPL Electric & Power Ltd investor conference, the transcript of which was filed on stock exchanges. Featured photograph is for representation only.)