HPL Electric & Power sheds 4% on decline in Q4 net profit

Shares of HPL Electric & Power slipped 4 percent in early trade on May 30 following the company’s dismal fourth-quarter earnings.

In Q4, HPL Electric & Power reported a 16.5 percent decline in net profit to Rs 11.3 crore, compared to Rs 13 crore in the same period the previous fiscal. The decline in bottomline was on account of a weak operational performance.

EBITDA margin contracted to 12.3 percent in January-March compared to 14 percent in the previous year.

At 1.40 pm, shares of HPL Electric & Power were trading with a cut of 3.25 percent at Rs 93.90 on the NSE.

On the positive side, the company’s revenue showed a growth of 11.6 percent on year, reaching Rs 362.8 crore. Robust growth in the consumer and industrial, and metering and systems segments helped lift revenues for the electrical equipment manufacturer.

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The company has a strong order book of over Rs 1,500 crore, which ensures revenue visibility for the short and medium term. “Meter & systems contribute 82 percent and the consumer and industrial segment contributes 18 percent of the current order book,” the company stated in an exchange filing.

Moreover, the company also received its first set of formal orders for supply of 5G electric products in the current fiscal, including cables to the top telecom companies. “Our growth outlook for this segment looks promising and the Company anticipates an additional Rs 150 crore worth of business in the near to medium term from this segment,” HPL Electric stated.

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