HPL Electric Eyes 25% Revenue Growth By 2027 On Strong Smart Metre Business

Propelled by its smart meter business, HPL Electric & Power Ltd. is set to achieve a growth rate of around 25% in the next three years, according to Joint Managing Director Gautam Seth. The company recently secured an order of Rs 144 crore to supply smart and conventional meters from one of its leading customers.

“The growth ratio for the company would be about 20-25%, especially in smart meters, the peak would come in three to five years. Although orders have been given out, the implementation is scheduled for the next three to five years. When we look at smart meters, the next five years are going to be of high growth,” Seth told NDTV Profit.

HPL Electric & Power expects a major boost from the government's  Revamped Distribution Sector Scheme for the installation of smart meters, Seth noted. The scheme, with the Design, Build, Finance, Own, Operate and Transfer model, aims to install 25 crore smart meters across the country with the aim of bringing down the aggregate technical & commercial (AT&C) losses.

Seth added HPL Electrical was supplying meters to nearly every major Advanced Metering Infrastructure Service Provider in the country. "We are currently sitting on Rs 3,700 crore of orders," he said. 

The top executive is confident of securing multiple repeat orders for the smart meter products.

He said they expected a lot of repeat orders through AMISPs. "The AMISPs are pre-qualified and many of their pre-qualifications are done based on our meters, which are prior tested with them,” he said.  

Seth projected that the company’s product mix was likely to change in the next five years once the supply of smart meters under the RDSS was completed.

“Currently, smart meters comprise 60%, and 40% is distributed between switchgear, lighting, wire and cables. For the next two years, when the bulk of the smart meters will be supplied, I would say the ratio would remain between 60 to 65%, but the C&I sector is also due for big growth. Maybe five years down the line, the product ratio could come back to 50-50%, which it has traditionally been,” he said.