- 02 Aug 2024
- ICICI Securities
HPL Electric & Power's strong operational performance continues
HPL - 583 Change: 0.55 (0.09 %)News: Revenue increased by 22.5% YoY to Rs 392.9 crore, led by ~36% revenue growth in metering & systems segment (60% of total revenue). Revenue from consumer & industrial segment (40% of revenue) was up 6.4% YoY. Sequentially, total revenue is down 7.4% as both the segments revenue declined 7-8%. EBIDTA margin improved by 180 bps YoY (+126 bps QoQ) to 14.3% on lower RM cost. Subsequently, EBITDA was up 40.2% YoY (+1.6% QoQ) to Rs 56.1 crore. PAT stood at Rs 17 crore (+145.4% YoY, +24.1% QoQ).
Views: Operational performance remains healthy during the quarter led by strong growth in smart metering segment. After the recent large order of Rs 2100 crore in smart meters, order backlog stands at Rs 3700+ crore (smart meters contribution is ~95%), which provides healthy revenue growth visibility. Moreover, tendering activities remains at healthy level in the smart meters segment, given the govt's strong thrust on the same. This ensures strong orders inflows in the segment in the coming period also, providing robust growth visibility for the company.
Impact: Positive