HPL Electric & Power Ltd (NSE: HPLE), a leading Indian manufacturer of low-voltage electrical equipment, has reported robust financial results for the first quarter, while outlining an ambitious multi-year growth strategy focused on smart metering, government electrification projects, and increased export activities.

Financial Highlights

For Q1, HPL Electric & Power reported:

• Consolidated revenue of ₹383.03 crore, a slight decrease of 2.51% year-over-year (YoY)
• EBITDA growth of 3.32% YoY to ₹57.99 crore, with EBITDA margin expanding by 85 basis points to 15.14%
• Profit After Tax (PAT) increase of 8.51% YoY to ₹18.48 crore
• Earnings Per Share (EPS) growth of 8.3% to ₹2.87

Segment Performance

The company's performance was marked by strong growth in its Consumer and Industrial segment, which offset a decline in the Metering and Systems segment:

• Consumer and Industrial segment: Revenue grew by 16.12% YoY to ₹179.09 crore, with EBIT rising 22.95% to ₹20.16 crore
• Metering and Systems segment: Revenue declined by 7.62% YoY to ₹217.87 crore on a standalone basis, primarily due to lower execution and delayed dispatch clearances in certain large projects

Strategic Growth Initiatives

HPL Electric & Power is positioning itself for multi-year growth through several key initiatives:

1. Smart Metering Focus: The company is capitalizing on India's smart metering transformation, with 99% of its metering order book dedicated to smart meters. This aligns with the government's push for advanced metering infrastructure.

2. Government Electrification Projects: HPL is actively participating in various government-led electrification initiatives, leveraging its strong position in the metering and power systems market.

3. Export Expansion: The company is increasing its focus on export activities to diversify its revenue streams and tap into global markets.

4. Product Innovation: HPL continues to invest in R&D across all product lines, with a particular emphasis on switchgear and lighting segments to maintain its competitive edge.

5. Order Book Strength: The company maintains a robust order book exceeding ₹3,000 crore, providing strong revenue visibility for the coming quarters.

Management Commentary

Mr. Gautam Seth, Joint MD & CFO of HPL Electric & Power, commented on the results and strategy: "Our Q1 performance reflects disciplined execution and our focus on growth. While revenue moderated slightly year on year, profitability improved across the board. The Consumer and Industrial franchise provided the primary uplift, with net revenue up 16.12% and EBIT up 22.95%, helped by offtake in domestic switchgear and wires and cables, and tighter operating discipline that widened margins."

He added, "Unlike other meter-centric peers, whose performance hinges on rollout milestones, our Consumer and Industrial vertical aligns with India's real economy across B2B capex and B2C replacement cycles, anchoring a diversified model that participates at the shop-floor and household level, and thereby delivers broader, more granular growth with a stronger, more durable earnings mix."

Future Outlook

HPL Electric & Power is well-positioned to benefit from India's ongoing electrification drive and the push towards smart grid technologies. The company's diversified product portfolio, strong order book, and focus on innovation are expected to drive sustainable growth in the coming years.

As the company continues to execute its multi-year growth strategy, investors and industry observers will be watching closely to see how HPL Electric & Power capitalizes on the opportunities in the evolving Indian electrical equipment market.

HPL Electric & Power Limited (NSE: HPLE), a leading Indian manufacturer of low-voltage electrical equipment, has announced its financial results for the first quarter, demonstrating significant growth in profitability and margin expansion.

Financial Highlights

• Consolidated Revenue: The company reported a consolidated revenue from operations of ₹383.03 crore, compared to ₹392.91 crore in the same quarter of the previous year, marking a slight decrease of 2.51%.

• Profit After Tax (PAT): HPL Electric & Power saw a notable increase in PAT by 8.51% year-over-year, reaching ₹18.48 crore. The PAT margin improved by 49 basis points to 4.82%.

• EBITDA Performance: The company's EBITDA grew by 3.32% to ₹57.99 crore, with the EBITDA margin expanding by 85 basis points to 15.14%.

• Earnings Per Share (EPS): EPS increased by 8.30% to ₹2.87 from ₹2.65 in the same quarter of the previous year.

Segment Performance

Consumer and Industrial Segment

• Revenue up 16.12% to ₹179.09 crore
• EBIT increased by 22.95% to ₹20.16 crore
• Margin expansion of 62 basis points to 11.25%

Metering and Systems

• On a standalone basis, revenue declined by 7% to ₹203.94 crore
• EBIT margin improved by 136 basis points to 17.67% despite lower volumes
• Improvement attributed to a richer mix, pricing discipline, and procurement efficiencies

Operational Highlights

• Order Book: Maintains a robust order book of over ₹3,000 crore, ensuring long-term revenue stability
• Smart Metering Leadership: 99% of the metering order book dedicated to smart meters
• Strategic Expansion: Deepening footprint in consumer and industrial segments through a network of 900+ authorized dealers and 85,000+ retailers nationwide

Management Commentary

Mr. Gautam Seth, Joint MD & CFO, commented on the results: "Our Q1 performance reflects disciplined execution and our focus on growth. While revenue moderated slightly year on year, profitability improved across the board. The Consumer and Industrial franchise provided the primary uplift, with net revenue up 16.12% and EBIT up 22.95%, helped by offtake in domestic switchgear and wires and cables, and tighter operating discipline that widened margins."

He further added, "Unlike other meter-centric peers, whose performance hinge on rollout milestones, our Consumer and Industrial vertical aligns with India's real economy across B2B capex and B2C replacement cycles, anchoring a diversified model that participates at the shop-floor and household level, and thereby delivers broader, more granular growth with a stronger, more durable earnings mix."

HPL Electric & Power's Q1 results demonstrate the company's resilience and strategic focus on diversifying its business model. The strong performance in the Consumer and Industrial segment, coupled with the company's leadership in smart metering, positions HPL well for sustained growth in the evolving Indian electrical equipment market.