29 th October, 2018 The Manager, BSE Limited Listing Department, 25 th Floor, New Trading Ring, Rotunda National Stock Exchange of India Ltd. Building, Phiroze Jeejeebhoy Towers, “Exchange Plaza”, C -1, Block G, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Symbol: HPL Scrip Code: 540136 Subject: Disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – Earnings Presentation Dear Sir Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, a copy of the Earnings Presentation that we propose to make during the conference call for investors scheduled to be held on Tuesday, 30 th October, 2018 at 5:00 PM IST is enclosed herewith. The said Earnings Presentation has also been uploaded on the Company’s website i.e. www.hplindia.com. We request you to kindly take the same on record. Thanking You Yours Faithfully, For HPL Electric & Power Limited Digitally signed by VIVEK KUMAR VIVEK DN: c=IN, o=Personal, postalCode=110095, st=Delhi, 2.5.4.20=3eb36823c8b414e7e934f2e0af3da01 0641437e49524495d66b6b358709bf23f, 2.5.4.45=032100E234C1A60CCB36368F0C1FF3 2031C16B9EC4C0C83F861248F1AB5F64A048C KUMAR 162, serialNumber=052767230d5f1c44b1c2164eefd b84f2c760ac7359949d646e7ce9b91f23d372, cn=VIVEK KUMAR Date: 2018.10.29 20:38:23 +05'30' Vivek Kumar Company Secretary Encl: As above
HPL ELECTRIC & POWER LIMITED Q2 & H1 FY19 RESULTS UPDATE OCTOBER 2018 1
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, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of HPL about the business, industry and markets in which HPL operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond HPL’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of HPL. In particular, such statements should not be regarded as a projection of future performance of HPL. It should be noted that the actual performance or achievements of HPL may vary significantly from such statements. 2 2
Quarterly Update Company Overview Shareholding Structure
Q2 FY19: KEY HIGHLIGHTS ▪ Strong execution in metering business Robust Revenue Growth ▪ Switchgear & Lighting business continued to witness strong traction 28% YoY And 10% QoQ in the trade segment ▪ EBIT margins improved across all businesses on QoQ basis driven by Improved Operating Margins higher sales, procurement efficiencies and strict control on And Profitability operating costs ▪ Total receivables days reduced from 164 to 140 days, driven by Improvement in Working reduction in Trade (non-utility) receivable days from 125 to 87 days Capital Cycle * ▪ Inventory days reduced from 149 to 138 days ▪ Received smart meter order worth Rs 52.3 cr from one of the Received Smart Energy Meter Order leading private utilities in India From Leading Utility ▪ The order is based on better pricing and profitable terms New Manufacturing Facility For ▪ Due to strong growth in both metering and lighting businesses, we Electronic Components Used in are setting up a new electronic components manufacturing facility dedicated for the lighting business Lighting Business * Improvement in Working Capital Cycle from Mar-18 to Sep-18 5 5
Q2 FY19: ALL MAJOR BUSINESSES DISPLAYING POSITIVE GROWTH TRAJECTORY Revenues In Rs Crore Metering Business 160.3 153.6 139.8 127.3 Strong Revival In Metering Business 123.1 119.6 115.6 112.2 Over Last 8 Quarters 100.1 Switchgear Business 67.8 56.3 54.1 51.3 Strong Traction In Switchgear 41.9 Business Over Last 4 Quarters Backed 39.5 39.0 38.5 36.8 By Renewed Management Focus Lighting Business 95.6 55.5 Continued Growth In LED Business 52.1 48.7 44.6 45.9 41.7 40.4 27.0 Has More Than Offset The Phase Out Of CFL Business Over Last 8 Quarters Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 6 6
Q2 & H1 FY19: YoY HIGHLIGHTS In Rs Crore NET REVENUES * & GROSS MARGIN EBITDA & EBITDA MARGIN PAT & PAT MARGIN 39.1% 33.1% 11.5% 11.7% 2.8% 2.7% 286.5 33.4 7.8 224.2 25.8 6.2 28 % 29 % 26 % Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 NET REVENUES * & GROSS MARGIN EBITDA & EBITDA MARGIN PAT & PAT MARGIN 36.9% 33.7% 11.1% 11.1% 2.6% 2.5% 546.5 60.7 13.5 445.4 49.3 11.5 23 % 23 % 17 % H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 7 * Net revenues from operations (net of excise duty) 7
Q2 FY19: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT REVENUE AND EBIT MARGIN • Metering revenues grew by 43% YoY • Strong execution % EBIT Margin Q2 FY18 Q2 FY19 286.5 • Metering margin declined due to higher 24.0 plastics prices 224.2 Wires & Cables 6.6% 4.1% 45.9 21.5 56.3 Lighting 11.2% 12.6% 52.1 • Switchgear & Lighting revenues grew by 46% 38.5 YoY and -12% YoY respectively Switchgear 17.1% 19.1% • 160.3 Switchgear sales benefitted from strong 112.2 Metering traction in trade business 17.2% 14.2% • Lighting sales saw healthy LED trade Q2 FY18 Q2 FY19 business; however declined YoY on a higher base of Q2 FY18 (festive season was SEGMENT REVENUE SHARE % in September) • Margins improved due to better pricing Q2 FY18 Q2 FY19 and procurement efficiencies 9.6% 8.4% • Wires & Cables revenues grew by 12% YoY 16.0% 23.2% 50.0% 55.9% 19.6% 17.2% Metering Switchgear Lighting & Electronics Wires & Cables 8 8
H1 FY19: YoY SEGMENT ANALYSIS In Rs Crore SEGMENT REVENUE AND EBIT MARGIN H1 FY19: 546.5 • Metering revenues grew by 22% YoY % EBIT Margin H1 FY18 H1 FY19 445.4 64.8 • Switchgear revenues grew by 47% YoY Wires & Cables 87.6 7.6% 4.1% 58.6 • Lighting revenues grew by 11% YoY 79.0 110.4 Lighting 11.2% 12.2% • Wires & Cables revenues grew by 11% YoY 75.3 Switchgear 17.7% 18.9% 283.4 231.8 H2 FY19: H2 is usually 55-60% of annual revenues Metering 16.7% 13.9% • Metering business: H1 FY18 H1 FY19 • Sustained growth in month-over-month deliveries SEGMENT REVENUE SHARE % • Switchgear & Lighting business: H1 FY18 H1 FY19 • Improved festive sales and continued traction in trade business 11.9% 13.2% 16.0% 51.9% 17.7% 52.0% 20.2% 16.9% Metering Switchgear Lighting & Electronics Wires & Cables 9 9
Q2 FY19: QoQ HIGHLIGHTS In Rs Crore NET REVENUES * & GROSS MARGIN EBITDA & EBITDA MARGIN PAT & PAT MARGIN 33.1% 11.7% 34.4% 10.5% 2.7% 2.2% 7.8 286.5 260.0 33.4 27.3 5.6 10 % 22 % 39 % Q1 FY19 Q2 FY19 Q1 FY19 Q2 FY19 Q1 FY19 Q2 FY19 10 * Net revenues from operations (net of excise duty) 10
Q2 FY19: QoQ SEGMENT ANALYSIS In Rs Crore SEGMENT REVENUE AND EBIT MARGIN • Metering revenues grew by 30% QoQ • Robust execution with an improving % EBIT Margin Q1 FY19 Q2 FY19 286.5 month-over-month delivery run-rate 260.0 24.0 • Metering margin improved due to better Wires & Cables 4.2% 4.1% 40.8 45.9 product mix 41.7 56.3 Lighting 11.7% 12.6% 54.1 • Switchgear & Lighting revenues grew by 4% Switchgear 18.6% 19.1% QoQ and 10% QoQ respectively 160.3 123.1 • Metering Improved trade business led by healthy 13.5% 14.2% volume growth Q1 FY19 Q2 FY19 • Switchgear margin improved due to better pricing SEGMENT REVENUE SHARE % • Lighting margin improved due to efficiencies from centralised procurement Q1 FY19 Q2 FY19 efforts 8.4% 15.7% • Wires & Cables revenues declined by 41% QoQ 16.0% 47.3% 55.9% • 16.0% Absence of specialty cable orders in Q2 19.6% FY19; these are expected to resume in H2 20.8% FY19 Metering Switchgear Lighting & Electronics Wires & Cables 11 11
ROBUST ORDER BOOK & OUTLOOK ORDER BOOK (RS CR) – NET OF TAXES 507.5 502.7 4.8 4.2 13.4 11.6 450.5 26.9 30.3 6.4 20.0 19.9 462.4 456.6 404.2 May-18 Jul-18 Oct-18 Metering Switchgear Lighting Wires & Cables 12 12
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