Noida-based HPL Electric and Power Limited has reported a strong set of numbers for the quarter ending March 2019. The firm, which has a diversified portfolio in the electrical equipment sector, reported a 73% profit growth, on revenue growth of 12.1 %, for the full year. Thus, final revenues for the year came in at Rs 1158.5 crores, versus Rs 1036.3 cores in 2017-18.
HPL reported strong growth in its crucial metering and lighting segments, with 37% and 30% growth respectively. Both these are aligned to the push for smart cities, better grids management across states, and of course energy conservation across the lighting spectrum with LED lighting. In contrast, the wires and cable segment, degrew, while the Switchgears business managed to report a 17% jump.
According to the firm, overall margin improvement was led by growth in metering and switchgear businesses.
Gautam Seth, MD said “Metering business clocked highest quarterly revenues with improved operating margins. The current order book gives us good visibility for the rest of the year. The switchgear and lighting business continues to grow, backed by a strong investment in brand building and marketing”. HPL had also partnered the Delhi Capitals team in the recently concluded IPL Cricket League as the official ‘LED and Switchgear’ partner.
Clearly, HPL Electric’s moves to move beyond the commodity business that is the wires and cables bit, have definitely borne fruit, though the government overhang remains strong in both lighting and metering for large orders. In the future, expect the firm to continue to make a strong trade and retain thrust, to maintain and grow margin quality.