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  • 13 Nov 2024
  • ICICI Securities

HPL ELECTRIC & POWER'S Q2FY25 RESULTS - STRONG OPERATIONAL PERFORMANCE CONTINUES

News: Revenue increased by 20.5% YoY (+7.5% QoQ) to Rs 422.3 crore, led by 29% YoY (+11% QoQ) growth in metering & systems segment (63% of total revenue) and 8.9% YoY (+2.4% QoQ) growth in consumer & industrial segment (37% of revenue). EBIDTA margin improved by 88 bps YoY (flat QoQ) to 14.3% on positive operating leverage. EBIT margin for metering segment expanded by 152 bps YoY (+20 bps QoQ) to 16.5% while the margin for consumer & electrical segment contracted by 158 bps YoY (-30 bps QoQ). Subsequently, EBITDA was up 28.4% YoY (+7.9% QoQ) to Rs 60.6 crore. PAT stood at Rs 20.6 crore (+86.7% YoY, +20.9% QoQ). For H1FY25, revenue is up 21% YoY with EBITDA margin expanded by 132 bps YoY to 14.3%. Metering segment revenue is up by 32% YoY in H1FY25 with EBIT margin expanded by 174 bps YoY to 16.4%. Consumer & industrial segment revenue is up 7.6% YoY in H1FY25 with EBIT margin contracted by 111 bps YoY to 10.5%

Views: Operational performance remains healthy during the quarter led by smart metering segment which continues to see strong growth and margin expansion. Order backlog remains strong at Rs 3500+ crore (2.2x TTM revenue) of which 95% is for smart meters. Execution is expected to pick-up further in the coming period led by increasing in-house manufacturing of required critical components. Other segments like cables and switchgears are also witnessing strong growth led by new products and expanding market reach. In smart meters segment, tendering activities remains at healthy level, given the govt's strong thrust on the same. This ensures strong orders inflows in the coming period also and provides healthy growth visibility.

Impact: Positive