Indian electrical equipment manufacturing major HPL Electric & Power Ltd. clocked a strong rise in Q2 and H1 FY25. The quarter ended September 30, 2024, and the six-month results reflect a journey of consistent and healthy growth that has been propelled by sound demand in its Metering Systems & Services segment. Revenue from operations increased 20.51% YoY in Q2 FY25 to ₹422.32 crore. YoY revenue growth for H1 FY25 increased by 21.46% and stood at ₹815.23 crore. Such growth reflects the ability of the company to drive market demand and scale up operations effectively.
Profitability: PAT of HPL improved impressively. PAT for Q2 FY25 almost doubled with a 95.83% YoY growth to ₹21.58 crore, while H1 FY25 surged by 114.98% to ₹38.61 crore. The company recognized the gains with its new operational stance that aimed at optimization and cost structure improvement. EBITDA margin also improved with gains of 88 basis points for Q2, to touch 14.34%. It improved by 132 basis points on the H1 basis, to 14.32%. Overall, the operational performance of HPL reflected a steady expansion of profitability in every significant segment.
HPL’s segmental performance is well reflected again. The Metering Systems & Services segment came forward with a 29.02% YoY growth in Q2 FY25 and earned ₹264.44 crore. H1 FY25 revenues were ₹503.11 crore for this segment, marking an increase of 32.09% YoY. The Consumer, Industrial & Services division also performed well, where, in the wires and cables vertical, it witnessed an extremely healthy 57.5% growth over the year. Domestic switchgear is also advancing by 34.5%. These results show HPL’s strategic investments and market positioning within its core business areas.
The strong order book over ₹3,500 crore as of H1 FY25, with a major contribution by Metering Systems & Services, forms the supplement. Multiple notable contract wins during the reporting period highlight market strength underpinned by HPL. In July 2024, HPL received an appreciable order amounting to ₹2,100 crores from a major customer for providing smart meters, and subsequently, a notable order amounting to ₹143.77 crores in September through smart and conventional meters. Such orders further confirm its position among one of the country’s leading companies in the smart metering industry, as the country is initiating measures in national energy infrastructure.
Strategically, HPL has upgraded its manufacturing capacity with an emphasis on innovation in the form of magnetic latching relay technology for smart energy solutions. More R&D expenditure ensures that the company is also at the forefront of industry technological developments. At the same time, over 83,000 retailers and 900 authorized dealers across India give HPL a massive reach in terms of distribution-and-servicing capabilities, which go well with solid market presence and company commitment to the accessibility of products.
Looking ahead, the strengthened market position and strategic initiatives of HPL provide a good underpinning for more sustained growth. The company’s strong leadership in smart metering, supported by a robust order book, puts the company well in a position to reap the benefits from infrastructure development in India and the growing demand for advanced energy solutions.
Source: PRNewswire