- June 1, 2018
- Mrinmoy Bhattacharjee
The company’s LED trade sales displayed growth on a YoY basis, but overall lighting revenues declined due to the high base effect of last year when we had executed some bulk LED sales: joint MD Gautam Seth
Electric equipment manufacturing major HPL Electric and Power Ltd (HEPL) has witnessed an improved financial performance in the fourth quarter driven by growth across all business segments. It has realised a “very positive” business trend marked by stronger H2 FY18 compared to H1 FY18. The company’s H2 FY18 revenues were 33% higher compared to H1 FY18; strong growth was seen across all its segments with switchgear sales up 58%, Lighting up 32%, Metering up 27% and Wires & cables up 26%, the company’s joint managing director Gautam Seth said as HEPL announced the financial results for the quarter ended March 31, 2018.
On an absolute basis, H2 FY18 EBITDA and PAT grew by 23% and 42% respectively compared to H1 FY18. LED trade sales displayed growth on a YoY basis, however, “overall lighting revenues declined due to the high base effect of last year when we had executed some bulk LED sales,” he said.
“Our overall order book was up 43% on a YoY basis to Rs 531 crore, led by 67% growth in metering orders. This places HPL in a very strong position with an improved revenue visibility in FY19. Further, tenders for over 7mn meters are currently being evaluated by a couple of states. We expect a double-digit growth in all business segments. Switchgear business shall continue to maintain current momentum driven by renewed management focus. Lighting business growth will be driven by improved LED trade sales and new LED products recently launched. Our increased efforts on advertising & marketing front should help to generate healthy growth in the trade business across all segments, strengthening the HPL brand and product recall in the mind of the customers,” Seth elaborated.