HPL Electric and Power Ltd Reports Q3 FY 19 Results

PAT for the first nine months of FY19, was stable.

HPL Electric and Power Ltd, an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, has announced its financial results for the quarter ended December 31, 2018.

Financial Performance in the first nine months of the financial year 2018-19, was marked by revenue growth across its core business segments – Metering, Switchgears and Lighting Products. The metering segment grew by 9% YoY in 9M FY19, marginally impacted by delayed inspection and dispatch of orders worth Rs. 19.8 crores in Q3. A decline in Metering Margin YoY in 9M FY19 was due to the impact of higher polycarbonate prices in the first 2 quarters of CY 2018. The Wires & Cables segment revenues were stable for the first nine months.

The Gross Margin for the quarter, at the company level improved by 85 bps, partly due to a decline in polycarbonate prices. Q3 FY19 EBITDA Margin expansion YoY can be attributed to lower Revenue contribution from Wires & Cables. Profitability decline during the quarter was primarily due to a decline in overall Revenue and higher depreciation. PAT for the first nine months of FY19, was stable.

Gautam Seth, Joint Managing Director said, “Our robust metering segment order book along with strong execution capabilities, provide a positive outlook for the fourth quarter and the year, overall. We have recently received a Smart Meter order for one of the Smart Grid projects. This re-enforces HPL’s position as one of the leading smart meter providers in the country. We expect Metering and Switchgear margins to maintain the upward momentum over the next few quarters, with stable polycarbonate prices and optimal product-mix, respectively.”