The outstanding order book position of HPL Electric & Power Ltd, as of March 31, 2023, was over Rs.1,500 crore.
The release observed that the order book of Rs.1,554 crore ensures revenue and visibility for the short and medium term.
Commenting on the company’s performance in FY23, Gautam Seth, Joint Managing Director, HPL Electric & Power Ltd, said, “The company’s robust order book not only bolsters our future revenue visibility but also serves as the bedrock for substantial growth and heightened profitability.
Meanwhile, an investor presentation by HPL Electric, discussing the company’s performance in Q4 of FY23 and full year FY23, highlighted that smart meters will play a key role in the growth-building story of the company. The company also said that since smart meters attract higher realization, they have the potential to increase the company’s revenue and enhance profitability.
The company has positioned itself very well in the smart meter market and is receiving good traction from customers, the presentation noted. Of the current meter order book, it is learned that smart meters account for over 75 percent and this share is expected to rise even further.
HPL Electric currently commands a market share of around 20 percent in the domestic meters market and has an installed capacity of 1.1 crore meters per year. (This includes all forms of meters and not just smart energy meters.)
Opportunity size
HPL Electric & Power has estimated an opportunity size of Rs.60,000 crore to Rs.90,000 crore arising from the Union power ministry’s plan of installing 25-30 crore smart meters across India. [As reported by T&D India in a separate story, the Union power ministry, as of mid-February 2023, had sanctioned over 20 crore smart meters under RDSS.]
“Being a leading player with a successful track record of supplying meters over the last two decades, HPL is well positioned to capitalize on the smart meter opportunity,” the presentation said.
Meanwhile, HPL Electric said that the inquiry base for metering tenders is at a healthy level as tenders amounting to over Rs.10,000 crore have been floated or are expected to be floated in the near term.
Also read: HPL Electric & Power Reports Strong Order Book Of Rs.859 Crore
Composition of order book
The investor presentation said that HPL Electric’s outstanding order book of Rs.1,554 crore, as of March 31, 2023, had 82 percent coming from the “Metering & Systems” business. The remaining 18 percent was from the “Consumer & Industrial” segment.
It may be mentioned that in FY23, the company reorganized its overall business in the two aforementioned segments. The M&S business now includes the metering and projects verticals, while the C&I segment covers wires & cables, lighting, luminaries, and switchgear.
In FY23, the Metering & Systems segment accounted for 53 percent of the total revenue, as against 44 percent in FY22.
The featured photograph shows an R&D facility of HPL Electricity & Power Ltd.
