Any current/future new fundraising through debt or equity?

Currently, HPL Electric & Power has some debt on the books due to scale-up activities over the past 2-3 years. The company aims to keep debt at a similar level but expects revenue to grow significantly in the next 2-3 years. They are focusing on reducing debt post-FY '26 as working capital cycle improves, especially in the metering business. Efforts are underway to reduce effective interest rates, aided by a rating upgrade. No specific mention of new fundraising through equity during the call. Overall, the strategy is to manage debt prudently while scaling up operations rather than aggressivel

Any current/future capex/capital investment/strategic investment?

Gradual capacity expansion planned for smart meters to reach 1.5 crore units annually in the next 2-3 years, depending on demand. Current basic infrastructure for smart meter production is mostly in place; upcoming investments focus on automation and add-ons. Recent capacity expansions include industrial plastic molding (20+ molding machines), electronic manufacturing, and semi-automated conveyorized smart meter lines. Future projects may include selective capex in the Cable and Wire segment to enhance product range aligned with growth opportunities. Manpower expansions are minimal; fo

Future growth expectations in sales/revenue/volumes?

Revenue for FY '25 expected to grow from INR1,460 crores to around INR1,800 crores or more, indicating strong growth momentum. Smart meter segment to see significant growth over the next 3-5 years, with existing order book of around INR2,000 crores and additional large orders expected. Smart meter capacity to increase gradually, aiming to reach 1.5 crore units per annum in 2-3 years. Wire and cable segment forecasted to grow well in the next 2 years, with expansion in product range and selective capex planned. Consumer business expected to grow steadily, driven by channel expansion and brand b

Future growth expectations in earnings/operating earnings/profits/EPS?

FY '24 PAT increased by 44% to INR44 crores; Q4 FY '24 PAT up 22% EBITDA for FY '24 rose 22% to INR192 crores; Q4 FY '24 EBITDA up 24% EPS grew 45% in FY '24, reaching INR7 FY '25 revenue guidance: expected growth from INR1,460 crores to around INR1,800+ crores EBITDA margin expected to remain strong; potential improvement as volumes increase Margin performance depends on product mix and commodity price stability Growth driven primarily by smart meters, with 20-25%+ growth expected over next 3-4 years Consumer segment and cable & wire businesses also expected to grow steadily

Current/ Expected Orderbook/ Pending Orders?

Current order book stands at around INR 2,000 crores, primarily in smart meters (about 87%). Delivery schedules for the existing order book range between 2 to 2.5 years, extending to 2.5-3 years for full execution. Large pipeline of additional orders expected as many states are yet to fully implement smart metering. The order pipeline from utilities to AMISPs is strong, with an estimated INR 10,000 crores worth of government tenders either floated or expected soon. Anticipated order book expansion could see it grow beyond INR 3,000 crores in the near future. Focus remains on fast execution and

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HPL Electric & Power LtdQ1 FY24Industrial Manufacturing

HPL Electric & Power Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹380P/E: 22.1Market Cap: ₹2.2K CrSector: Industrial Manufacturing

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Revenue for FY '25 expected to grow from INR1,460 crores to around INR1,800 crores or more, indicating strong growth momentum.
→Smart meter segment to see significant growth over the next 3-5 years, with existing order book of around INR2,000 crores and additional large orders expected.
→Smart meter capacity to increase gradually, aiming to reach 1.5 crore units per annum in 2-3 years.
→Wire and cable segment forecasted to grow well in the next 2 years, with expansion in product range and selective capex planned.
→Consumer business expected to grow steadily, driven by channel expansion and brand building.
→Switchgear segment saw 27.4% growth and expected to grow further due to housing and infrastructure demand.
→Overall volume growth anticipated especially in lighting from H2 FY '25 onwards after industry stabilization.

Margin guidance

Category 3

→FY '24 PAT increased by 44% to INR44 crores; Q4 FY '24 PAT up 22%
→EBITDA for FY '24 rose 22% to INR192 crores; Q4 FY '24 EBITDA up 24%
→EPS grew 45% in FY '24, reaching INR7
→FY '25 revenue guidance: expected growth from INR1,460 crores to around INR1,800+ crores
→EBITDA margin expected to remain strong; potential improvement as volumes increase
→Margin performance depends on product mix and commodity price stability
→Growth driven primarily by smart meters, with 20-25%+ growth expected over next 3-4 years
→Consumer segment and cable & wire businesses also expected to grow steadily
→Company focused on operational efficiencies, cost control, channel expansion, brand building, and automation to support margin and profit growth

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Fundraise plans

→Currently, HPL Electric & Power has some debt on the books due to scale-up activities over the past 2-3 years.
→The company aims to keep debt at a similar level but expects revenue to grow significantly in the next 2-3 years.
→They are focusing on reducing debt post-FY '26 as working capital cycle improves, especially in the metering business.
→Efforts are underway to reduce effective interest rates, aided by a rating upgrade.
→No specific mention of new fundraising through equity during the call.
→Overall, the strategy is to manage debt prudently while scaling up operations rather than aggressively raising fresh debt or equity at this time.

Order book

Yes

→Current order book stands at around INR 2,000 crores, primarily in smart meters (about 87%).
→Delivery schedules for the existing order book range between 2 to 2.5 years, extending to 2.5-3 years for full execution.
→Large pipeline of additional orders expected as many states are yet to fully implement smart metering.
→The order pipeline from utilities to AMISPs is strong, with an estimated INR 10,000 crores worth of government tenders either floated or expected soon.
→Anticipated order book expansion could see it grow beyond INR 3,000 crores in the near future.
→Focus remains on fast execution and meeting delivery schedules rather than worrying about quarter-to-quarter order book dips.
→Orders are expected to keep flowing depending on performance and delivery by AMISPs.

Capex plans

Yes

→Gradual capacity expansion planned for smart meters to reach 1.5 crore units annually in the next 2-3 years, depending on demand.
→Current basic infrastructure for smart meter production is mostly in place; upcoming investments focus on automation and add-ons.
→Recent capacity expansions include industrial plastic molding (20+ molding machines), electronic manufacturing, and semi-automated conveyorized smart meter lines.
→Future projects may include selective capex in the Cable and Wire segment to enhance product range aligned with growth opportunities.
→Manpower expansions are minimal; focus is on automation to control labor costs despite revenue growth.
→Larger orders and strong pipeline expected, driving investments in capacity and manufacturing capabilities to meet demand over next 2-3 years.
→Capex will be incremental, aligned closely with execution schedules and order inflow from AMISPs.

How does HPL Electric & Power Ltd rank vs peers in Industrial Manufacturing?

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