HPL Electric & Power Ltd expects that its metering division would perform even better in Q4 of FY21, on top of a 17 per cent quarter-on-quarter growth in Q3.
In an investor call conference, Gautam Seth, Joint Managing Director, HPL Electric & Power Ltd, said that revenues for the metering segment in Q3 of FY21 stood at Rs.109 crore as against Rs.93 crore in Q2 of the same year.
According to Gautam Seth, “We are expecting the metering segment to perform better for the fourth quarter onwards as the inspections are likely to pickup. We remain bullish on the opportunities present in the metering segment, especially in the smart meter segment given the thrust by the SEBs and the government to install the smart meters.”
Seth added that the one-time liquidity injection of Rs.1,20,000 crore into power discoms is likely to improve their financial position, which will help support the demand for new metering orders over the next year, whilst also ensuring timely payment to suppliers.
HPL Electric remains focused on enhancing its smart meter technological base and to become market leaders in the smart meter segment. The company anticipates huge growth in the smart metering segment in the medium and long term, noted Seth.
Two companies certified
Gautam Seth said that HPL Electric was fully geared up to meet the upcoming demand for smart meters. HPL Electric already has all the required BIS licences. Moreover, the company’s subsidiary Himachal Energy also received independent BIS certifications recently. With this, HPL Electric is virtually equipped with two entities independently pursuing opportunities in the smart meters space.
Capacity utilization
HPL Electric currently has the capacity to manufacture around 9 million energy meters per year. This capacity is spread across all types of meters, mainly conventional and smart. As Gautam Seth explained, this capacity is flexible and can be deployed for any type of energy meter. Currently, the company’s capacity utilization of energy meter capacity is 70-75 per cent and would suffice in meeting the imminent demand. “No significant capital expenditure is currently required for future growth,” Gautam Seth noted.
Tender finalization: Process to gather steam
Gautam Seth observed that finalization of energy meter orders has been “a little slow” over the past 4-6 months but the pace is expected to pick up in the coming months. Even the process of order finalization, pickup of material, inspections and even deliveries are expected to gather pace.
HPL Electric has been able to command a market share of 23-24 per cent in the energy meter space, and Gautam Seth expected that the same would be maintained. “Our endeavour is definitely to be a market leader in the smart metering segment,” said Gautam Seth.
Twin Orders in Punjab
HPL Electric & Power is implementing a street lighting project in Punjab. The order, on which details are not available, involves installation of smart streetlights as part of the Jalandhar Smart City project. The installation of street lights has commenced and in the next 3-4 months, the project should be completed. In Punjab itself, HPL Electric recently won an order to supply three-phase smart meters to be installed across the state. “Both these are prestigious orders and this is something that makes our R&D proud,” observed Seth.
