HPL Electric & Power Ltd has said that the enquiry base for energy meters is very healthy. While announcing its financial results for the second quarter (July to September) of FY20, HPL Electric estimated that tenders amounting to Rs.2,000 crore (standing for around 1.6 crore energy meters) have been floated or are expected to be floated in the near term.
According to Gautam Seth, Joint Managing Director, HPL Electric & Power Ltd, “In the meters business, healthy order book combined with increased enquiries and tenders provides good revenue visibility for the rest of this year. Further, favourable policy measures like the Government’s plan to set up a Rs.25,000-crore fund to revive stalled housing projects and the increased government spending is expected to further boost demand for HPL’s products especially for domestic switchgears.”
Meanwhile, HPL Electric said that its current order book position was Rs.390.30 crore out of which Rs.361.40 crore were for energy meters. The order book for the switchgear business stood at Rs.19.60 crore while that for lighting products was Rs.8.20 crore. Wires & cables had an outstanding order book of Rs.1.10 crore, a company statement said.
On the financial front, metering business continued its growth momentum in the second quarter as revenues grew by 22 per cent (quarter on quarter) and 3 per cent year-on-year, driven by timely execution of orders
The lighting business witnessed robust growth with revenues growing by 12 per cent year-on-year. Growth was majorly led by network expansion, and offering a wider range of products to consumers
On the other hand, contribution of the switchgear segment remained muted due to lower demand in real estate, industrial and infrastructure markets.
