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Biggest Order for HPL Electric & Power: Major Smart Meter Supply Win

16 July 20244 mins read by Angel One
This order, inclusive of tax, is the largest in the company's history, reflecting its robust market position and trusted customer relationships
Biggest Order for HPL Electric & Power: Major Smart Meter Supply Win
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Major Order Win: A New Milestone

HPL Electric & Power Limited has received a substantial work order valued at Rs 2100.71 crores from leading customers for the supply of smart meters. This order, inclusive of tax, is the largest in the company’s history, reflecting its robust market position and trusted customer relationships. The order will be executed as per the terms and conditions outlined in the Letter of Award (LoA) and work orders, further solidifying HPL’s reputation in the smart meter segment.

Stock Performance

Shares of HPL Electric & Power have jumped over 12% at Rs 529 and with this, the stock has recorded a fresh 52-week high. The stock opened at Rs 470.70 and it made an intraday high of Rs 536.80. A total of 29.5 lakh shares have changed hands in the first hour of the trading session. This is the highest single-day volume traded on NSE in the last three trading sessions.

Q4FY24 Performance Highlights

Revenue Growth

HPL registered a commendable revenue growth in Q4FY24, increasing by 17% year-on-year. The revenue reached INR 424.09 crores in Q4FY24, up from Rs 362.75 crores in Q4FY23. This growth is a testament to the company’s strong market presence and effective business strategies.

Segment Performance

Metering, Systems & Services

The Metering, Systems & Services segment saw an impressive revenue growth of 33.49% year-on-year, reaching Rs 255.78 crores in Q4FY24, compared to Rs 191.61 crores in Q4FY23. This segment continues to be a high-growth area for HPL, driven by the increasing demand for smart meters.

Consumer, Industrial & Services

The Consumer, Industrial & Services segment experienced a marginal increase of 3.00% year-on-year in FY24, reaching INR 608.28 crores, up from INR 592.18 crores in FY23. Despite some challenges in the lighting product lines due to technological changes, the segment maintained steady growth.

Profitability

HPL’s profitability also improved significantly in Q4FY24. EBITDA registered a growth of 23.86% year-on-year, with EBITDA standing at Rs 55.22 crores in Q4FY24, up from Rs 44.58 crores in Q4FY23. The EBITDA margin expanded by 73 basis points, reflecting improved operational efficiency.

Order Book

As of 9th May 2024, HPL’s order book was robust, exceeding INR 2000 crores. This strong order pipeline ensures revenue visibility and sets a solid foundation for future growth.

Strategic Outlook

Focus on Smart Meters

Smart meters are poised to be a game-changer for HPL, with a significant portion of the new orders comprising these technologically advanced products. The company is undertaking specific capacity expansion and automation measures in its Gurgaon, Sonipat, and Jabli meter plants to meet the rising demand.

Innovation and Expansion

HPL continues to innovate and expand its product offerings. The company has launched new products in the lighting and switchgear segments, enhancing its portfolio and market reach. Additionally, HPL is focusing on expanding its distribution network and strengthening customer relationships to drive future growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.

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