HPL Electric & Power Limited (HPL) Q3 FY23 Earnings Concall Transcript

HPL Electric & Power Limited (NSE:HPL) Q3 FY23 Earnings Concall dated Feb. 15, 2023.

Corporate Participants:

Gautam Seth — Joint Managing Director and Chief Financial Officer

Analysts:

Mudit Kabra — Elara Securities Private Limited — Analyst

Aman — — Analyst

Subrata Sarkar — Mount Intra Finance — Analyst

Sriharsha — Individual Investor — Analyst

Nidhi Sharma — Individual Investor — Analyst

Presentation:

Operator

Ladies and gentlemen, good day, and welcome to the HPL Electric & Power Limited Q3 FY23 Earnings Conference Call, hosted by Elara Securities Private Limited. [Operator Instructions] Please note, that this conference is being recorded.

I now hand the conference over to Mr. Mudit Kabra from Elara Securities Private Limited. Thank you and over to you, sir.

Mudit Kabra — Elara Securities Private Limited — Analyst

Thank you, Lisan. Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q3 FY23 and and 9 months FY23 conference call of HPL Electric & Power Limited. I take this opportunity to welcome the management of HPL Electric & Power, represented by Mr. Gautam Seth, Joint Managing Director and CFO. We will begin the call with a brief interview by the management, followed by a Q&A session.

I will now hand over the call to Mr. Seth for his opening remarks. Over to you, sir.

Gautam Seth — Joint Managing Director and Chief Financial Officer

Thank you, Mudit. Good afternoon, everyone, and I hope all of you are doing well. And thank you for joining us at the HPL Electric & Power earning call, to discuss the financial and operating for Q3 and 9 months of FY23. To begin with, our financial performance. Q3 and 9 months of FY23 recorded a good growth for the company. I’m pleased to inform you that the company registered a strong year-on year performance, where revenue grew by 31% in 9 months to INR900 crore compared to INR689 crore in the previous year. The quarterly revenue also increased by 8% in Q3 to INR302 crore.

EBITDA grew by 41.26% year-on-year in 9 months to reach INR112 crore. EBITDA margin expanded by 94 basis-point and stood at 12.48%. As far as other segments are concerned, the Metering and Systems segment registered a robust growth of 60% year-on-year, in 9 months FY23, and 46% growth in the Q3 FY23. The Consumer and Industrial segment registered a growth of 8% in the 9 months of FY23.

Metering and Systems delivered a robust performance this quarter. We look-forward to remaining bullish and capitalizing on the Smart Meter segment that is evolving to demonstrate huge market demand. We are positioned at the forefront of this segment and continue to grow with new enquiries and considerable orders. The growth prospects in both the Metering and Systems and Consumer and Industrial are looking promising for the business.

The company is well-positioned based on the financial performance of this quarter and the 9 months. We are focusing on business expansion and participating in fast pace development that the country is going through. We are already receiving regular orders for 5G rollout and are hopeful of crossing over INR150 crore business near and medium-term, as per our earlier guidance. We have been consistently making investments in our R&D and innovations, culture building and training throughout our organization at every level and in every function. All these developments, are making us stronger and more resilient to cater to the coming opportunities.

We are beginning to expand our capabilities by placing a greater focus on our product innovation in the market. We are in-line with our set goals and shared guidance for this financial year. The company is constantly working to strengthen its footprint in the market through our product portfolio, which is nurturing quarter-on-quarter. Apart from that, we are diligently working to enhance our dealer and retailer network for a better penetration, especially in the Tier 2 and Tier 3 markets. Currently, we have over 45,000 plus registered retailers and over 900 authorized dealers.

In the present moment, we have a healthy order book of over INR879 crore, which we anticipate will drive the business in future. Moreover, with the tender and enquiry pipeline, we anticipate the order book to be strengthened further, very shortly. We have enhanced our product portfolio in each of the categories, which will be on display in the forthcoming events later this week in Delhi.

Looking at the next quarter and the future, our growth strategy is centered on increasing market-share, generating healthy profits, acquiring new customers, and penetrating further into promising markets. We are doing this by introducing greater operational and financing efficiencies within our business. We are committed to drive forward better brand differentiation through innovation in our business strategies.

So, I think with this, we can go-ahead on the Q&A.

Questions and Answers:

Operator

Thank you. [Operator Instructions] The first question is from the line of Aman from [Indecipherable] Investments. Please go-ahead.

Aman — — Analyst

Yeah, sure. Thank you, ma’am. Am I audible, sir?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes, Aman, please go on.

Aman — — Analyst

Yeah, sure. Yeah, first of all congratulations on a good numbers, sustainable numbers. Sir, I had a couple of questions. What type of market growth are we looking in Electrical and Metering segment going-forward, sir? And in terms of percentage, what are we looking on a CAGR basis?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yeah, so in case — by electrical, you mean the Consumer and the Industrial part or?

Aman — — Analyst

Yeah, Consumer and Industrial part.

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes, so going-forward, first I’ll just take-up the metering. So, like in the first 9 months, we have seen 60% growth in the metering and we would continue to see the growth happening almost quarter-on-quarter basis and then, going-forward. So, let’s say, looking at the next 15 months the fourth quarter and the next year, I think metering is set to grow pretty high, in the sense that we already have an order book of INR504 crore in the metering. There are couple of orders or tenders where we are very well-placed. And we do expect orders coming in very shortly, within the Q4 and some models, even coming in the first-quarter. So, in terms of the tender pipeline, and the inquiries which are there in meters, we do anticipate the growth coming through.

Now, if you recall, you know there has been certain, the electronics and the semiconductor supply issues, but I think those are also now at a much better level. So, in terms of execution also, we have strongly been growing almost quarter-on-quarter for the last three quarters. So, in terms of growth, we would definitely see even going-forward a strong double-digit growth.

Now coming to the Consumer and Industrial part, the last two years have been pretty good, after the the first and the second lockdowns. We have seen a steady growth in this segment. Unfortunately, only in the last four months, we have seen certain stagnation happening at those and the growths are not happening in the Consumer and Industrial. So now, if you go back, last year was a high base for the Consumer and Industrial. So, that is one reason, but nevertheless, the growths have not been there, but we have seen within the third quarter, the October-November was slow, but December, I think the business really picked-up at that time, even January has been fairly better.

So, I think, in the Q4, we would come back probably to at least a double-digit growth happening. Next year again, we — because broadly, if you see the overall parameters and the way our, the Consumer and Industrial business is structured, where we have a very strong product portfolio, there are a lot of new products being launched in the current months.

Aman — — Analyst

Correct, sir. Understood. Yes, sir.

Gautam Seth — Joint Managing Director and Chief Financial Officer

So, in all aspects, we do see ourselves growing in the — a little ahead of the market and in fact, garnering the market-share. The last two years, we have seen certain steady growths, but I think what has happened is a little more temporary, but I’m sure the growth should come back and that also would be at least a double-digit growth going forward.

Aman — — Analyst

Sir, going-forward now, we are currently doing towards 12% to 15% of EBITDA. Going-forward, when volume also comes in, do we see that EBITDA margin to be the same levels or are we seeing it to move forward to 20% to 25% margin levels?

Gautam Seth — Joint Managing Director and Chief Financial Officer

So, currently, if you look at the type of business we are, here again, I will deal it a little separately for both the divisions. If you see the Consumer and Industrial, anything around 11%, 12% on the EBIT margin, because you have to realize that wire and cable is over there, which is much more

Aman — — Analyst

And Metering segment, sir?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes, sorry?

Aman — — Analyst

And Metering segment?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yeah, I’ll just come to that. So, if you see the — in combination, about 11%, 12% is currently the way we look at it, that’s where it is. In Meters, our EBIT margins are even higher of 13.5%, 14.5%. Now, as the smart meters comes in a bigger way, I would say initially, the EBIT margins could go up, but that would happen when the large part of business start shifting all to the smart meter.

Aman — — Analyst

Okay. Yeah, sir. My next question, Power Grid has recently-announced the tender of INR1 crore smart meters. Their plan is to take it out in a rental basis from companies and then rent it out to these discount companies were then distribution companies, are we seeing too as in deal for rental or sales, sir? Are we seeing with the for sales purpose or are we also planning in the rental purpose?

Gautam Seth — Joint Managing Director and Chief Financial Officer

No, currently, if you see the major part of business what we are looking at, we are focused on supplies to either the electricity boards, to the distribution companies and also to the AMISPs. So, although HPL Electric and along with its subsidiary Himachal Energy both approved as an AMISPs, but we don’t — but we are not actively participating there picking-up the orders directly, because if you see, there is — the payments are structured in eight years, it does involve a lot of initial capex happening and the business cycle.

So, however, our key focus being the smart meter manufacturing and including the deployment so, that is where we are mainly focused on but in that also, if you look at most of the AMISPs who are participating, we are approved with them or rather, they are approved using our meters, as a test case for approvals here.

Aman — — Analyst

Okay, okay, sir. Sir, and just wanted to know what is our current level of capacity, which we are running at?

Gautam Seth — Joint Managing Director and Chief Financial Officer

In meters, I would say there is definitely, there is an improvement in the capacity utilization in the last quarter, but roughly, I would say anywhere between 65% to 70% is something what we are there. Now these are, again, I’ve said it, number of times in earlier calls also that these, the capacities can be taken on a little flexible basis because the upside — to do the upside is much more easier in terms of putting in resources in terms of manpower or even working on two or three shifts. So, although, some part of our capacities are running on two or three shifts, that is mainly the injection moldings or even certain continuous processes but overall, we are doing that. But apart from that, we are also off late, in the last six months, we have been investing into certain kinds of automation. And that is again going to give us a better output in terms of power and

Aman — — Analyst

This automation are in-house R&D or are we doing it in JV, sir?

Gautam Seth — Joint Managing Director and Chief Financial Officer

No, these automations, I’m talking about is in the manufacturing process. So, in terms of testing, in terms of — so, there are couple of — lot of areas now, which are more continuous processes, which can be done by even unmanned or even.

Aman — — Analyst

And going-forward, do we feel the need of adding shifts as you mentioned, sir, adding more workers into the, in our production side, do we see the need of it?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes, we are doing that. Yes, so already that is happening. And it depends on the production and the supply schedules, what we are having. But if you look at what we were doing last year and then even in the first-quarter and if you see the third-quarter, definitely there is a big jump, in terms of volume and the sales. So, definitely utilization has gone up and even the throughput of coming out with more meters that is happening and we see this trend to continue well, beyond in the next 15 months atleast.

Aman — — Analyst

So, sir, this trend in revenue trajectory, what do we..

Operator

Sorry, to interrupt, Mr. Aman.

Gautam Seth — Joint Managing Director and Chief Financial Officer

Aman, your voice is not clear.

Aman — — Analyst

Hello, am i audible now?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes.

Aman — — Analyst

Yes. So, this growth in revenue trajectory, what type of quarter 4, do we see, it will be — will it be, because quarter 3 was much more expected from the market side of it, but we couldn’t see that realizing, but was there some postponement of revenue or any contracts or some recognition was postponed to Q4, sir, or is it some other way, will Q4 be more than?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Aman, just — sorry, I couldn’t get the first part of your question.

Aman — — Analyst

Sir, I was asking, sir, quarter 3, revenue was not as much as expected in the industry, but do we see any — has there been any quarter 3 revenue, which was being postponed to quarter 4 or the coming year or we are in the initial stages of realizing the revenues from larger contracts?

Gautam Seth — Joint Managing Director and Chief Financial Officer

No, so, you were talking about meter?

Aman — — Analyst

Yeah, meters, particularly, meters and whichever?

Gautam Seth — Joint Managing Director and Chief Financial Officer

In the Meters and the Systems division, we have done INR169 crore net of taxes. So, I think, we are — we have been growing in that, of course, there’s always a scope for further growth and improvements, but I would say this figure would go up, probably even in the Q4 based on the schedules and our production, what is happening. You also have to realize that each of the product, which is made and supplied to the utilities or the distribution companies, they go through a mandatory pre dispatch inspection.

Aman — — Analyst

True, sir. Sir, this is — yes.

Gautam Seth — Joint Managing Director and Chief Financial Officer

Sometimes it does happen that some materials are ready and they get postponed to the next one. But in the current case, I don’t see any — although there could be some natural tendencies, but as such, I think whatever was scheduled has mostly gone out. So, we would see we have schedules for the Q4, and I think that would be there, they are already underway and we should be able to achieve our target, what we have internally for the current quarter here.

Aman — — Analyst

Okay, sir. So, this quarter — this year we have done…Hello?

Operator

Sorry to interrupt Mr. Aman, sir, may we request that you return to the question queue, there are participants waiting for their turn.

Aman — — Analyst

Yes, sure. Thank you.

Operator

Thank you. The next question is from the line of

Gautam Seth — Joint Managing Director and Chief Financial Officer

Thank you, Aman.

Operator

The next question is from the line of Subrata Sarkar from Mount Intra Finance, please go-ahead.

Subrata Sarkar — Mount Intra Finance — Analyst

Hello? Hello?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes, sir, please go on.

Subrata Sarkar — Mount Intra Finance — Analyst

Yes, sir. Sir, few questions. First on the Metering side, sir. So, Metering side, sir, we have seen like lot of tender has been floated on the AMISP level and few of our companies, the competitors are actually beating — bidding for AMISP order also. So, I suppose, we don’t want to bid on the AMISP, if you can clarify on that? Number one, sir.

Second, sir, we have received order. So, now, I have two questions, one on the supply-side, sir. So, at optimal level, how much quantity and what kind of revenue we can do with our existing capacity? Number one. And second, sir, if you throw some light on regarding these Metering, about the working capital requirements sir, are we — we already have around INR500 crore debt on our balance sheet. So, like how much we want to leverage further or what is our strategy on the capital — working capital side and the capital side on that?

And Second, sir, like vis-a-vis, sir, although we have seen quite significant growth on the Metering side, sir, but another part of our business as per our segmental revenue, that’s not really picking-up. So, if you can throw some light on that, sir? This is my initial question.

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yeah, sure. So, in terms of our capacity, our normally declared capacity is at 9 million meters, which is 90 lakh meters. So, I think we can do anything between 9 million to 10 million meters based on our current capacity. So, currently as I’ve said earlier, we are probably around 65% of that. And I think in terms of the orders and the inquiries what we are seeing so, I don’t see capacity as a constraint, because even if whatever the orders which are coming on from AMISP also, many of these supplies are to happen in the next 24 to 27 months, then there is also a lead-time before the AMISP does the initial work and the supply start and then there is a, the initial work is there.

So, overall, although the suppliers and the inquiries which are coming are very large, but I think there is sufficient time to do that, but however, currently, we are working on a good capacity level. We are seeing it increase quarter-on-quarter. So, in terms of that, we don’t see any capacity constraints right now on that. As I’ve said earlier in my last reply, that there a lot of process automation, which we have undertaken, because under the new guidelines, if you see a lot of standard — the standards are much better now. So, the quantities are coming based on those specifications, based on those standards and the guidelines. So, as they become much more standardized, it becomes easier to produce larger numbers. And then, thereby bringing down the the cost of production for unit. So, that’s how our teams have been working on that.

Coming to the working capital requirements, yes, traditionally if you see the meter working capital requirements are a little high. The debtor days are normally around 180 to 200 days from the electricity board. Now with the introduction of the AMISPs, if we are supplying them smart meters as a component, we see the working capital cycle to improve and, off course it’s now in the initial stage, but as this picks on, but the picks up much more, we definitely should see a improvement in the working capital cycle going-forward. So, because this would be supply against either LCs against bank LCs and thereafter, they are taking the responsibility as an AMISP and financing it for the eight or nine years, whatever is there.

So, as a company we are focused on more into our core focus which is manufacturing and supply of the smart meters. So, we are currently supplying to the electricity board, to the the private utilities and also with the AMISPs, with most of the AMISPs, you see around right now, they have all been — they have already tested our meters and the inquiries are on. So, we do hope big orders to come by from these AMISP.

Regarding participation, independently as an AMISP, I don’t think that is something what we are looking at. With joint-venture partners, where — who could be financing it, yes, we have definitely explored a couple of options, but I don’t see anything much happening right now on that. We have a lot of business which is already with us and the future business or what we expect, that is mainly on the supply-side of the meter. So, the working capital what we have, we don’t see ourselves, leveraging more from here on. But with the supplies happening to the AMISPs, definitely we see the working capital to become better. Now this is for the meters.

When you look at the trade market, where mainly the consumer and industrial products are going, that is there again the channel financing is increasing. I think every quarter we are increasing the footprint of that and I think as we have said earlier also, by the end of next year, we do expect a very vast majority of our business happening through channel financing, which would thereby, bring the working capital requirements in the Consumer and Industrial segment, pretty low.

Now regarding the third question what you asked on the performance of the Consumer and Industrial part. Yes, in the last four months, we have seen certain let’s say sluggishness in-demand or little slow sales, but prior to that, if you see the growth in the last two years has been over in a high digit of over 20% plus. So, the base has been high, but nevertheless, I think, certain actions and refocus, what we have given, we do hope that within the fourth quarter, we should be again back with a double-digit growth and thereafter, even next year with the introduction of a lot of new products coming in, lot of new markets what we are looking at, I’m sure we should be back-in that, but I don’t see any long EBIT cause of concern or something like that in that, but yes, in the market, it may happen in one or two months, sometimes we do see certain slowdowns in a way.

Subrata Sarkar — Mount Intra Finance — Analyst

Okay. Sir, one follow-up on our capacity side. You told like 900 sorry 9 million is our total capacity, sir. Hello? Hello?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes, please?

Subrata Sarkar — Mount Intra Finance — Analyst

Yes. So out of this 9 million, sir, how much can be smart meter? Number one. And, sir, if you can give us some idea of the peak, you have given it in terms of volume, some idea about the revenue also because you understand almost smart meter cost price is almost 3 times to that of the ordinary meter. So, if you can give some monetary numbers also like this 900 — 9 million rather transferred into how — what kind of rupee number also, particularly since now there is two type of meters so, vis-a-vis and how much is we can do in terms of smart meter?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yeah, so in terms of — if you see currently, although most of the tender inquiries are now of smart meters, but also we are still seeing that even the conventional electronic meters, the demand is still good and lot of state utilities are also giving those order. So, even that flow is continuing.

Subrata Sarkar — Mount Intra Finance — Analyst

Yes, sir.

Gautam Seth — Joint Managing Director and Chief Financial Officer

And even in the near-term, we do see that also to continue. If you look at our own order book of over INR500 crore, about 60% plus is right now smart meters, the 40% is almost of the conventional electronic meters. So, by the time these changes, it may take some time, until the smart meter become fully relevant.

Theoretically, all the 9 million meters what we make, can be converted to smart meters. So as such the unit values go up, maybe certain processes might be extra, but as such, the entire capacity have its — a lot of use of existing machines and the infrastructure gets — will get converted into the smart meters. So, I don’t — so, this 9 million remains like this, but we should be, over a period of time as the demand comes in more for only the smart meters, we should be able to convert this into smart meters.

Subrata Sarkar — Mount Intra Finance — Analyst

Okay. Yes, sir.

Gautam Seth — Joint Managing Director and Chief Financial Officer

In terms of value, the per unit cost of meter along with lot of services or add-ons, what are there, that the unit costs are high. But right now, it would be just probably just giving a estimate without this thing on what the values can be. But in terms of, if you look at-the-market size, the way it is set to grow or even the the tenders, which are there which currently would be in excess of even INR10,000 crore or even much higher than that, so, I think overall, the values are set to grow once the quantity converts to the smart meters there.

Subrata Sarkar — Mount Intra Finance — Analyst

Sir, the current smart meter unit price is around INR5,500, INR6,000 sir, is it right understanding?

Gautam Seth — Joint Managing Director and Chief Financial Officer

No, it depends on the tenders and depends on order to order around what the customer wants. So, it is — it can be that, it can be even higher, higher than that, depends on what are the requirements for meters.

Subrata Sarkar — Mount Intra Finance — Analyst

Okay. But sir, INR6,000 around is okay, it can be higher, sir, but like around IMR 5,500 and INR6,000, it is the right assumption, sir? Any ballpark number? Yes, sir.

Gautam Seth — Joint Managing Director and Chief Financial Officer

No, it would be difficult or just guess for us to do that, but I’m sure when the orders are coming out, because these are all public information. So, I’m sure you will get to know that but it’s difficult for me to just give a single figure of what that would happen, but yes, it is 3 times or 5 times higher than what the conventional meters are. But that again depends purely on the customer requirements, the tender terms, the other structuring, what the utilities would

Subrata Sarkar — Mount Intra Finance — Analyst

Got it. But sir, we are only like — as per my understanding there are two-part of that business. One is the — one is the upfront selling of the meter and the second is the kind of AMC costs, sir, AMC charges. So, we are only on the like manufacturing part of that business right now?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes, right now we are looking at supplying the smart meters — if we are to supply to the AMISPs, then it is basically a supply order with the subsequent support on the warranties. The other IT infrastructure, or even the maintenance, the O&M part what they say is, that becomes the role of the AMISPs, but then that is spread over the period of overall 10 years.

Subrata Sarkar — Mount Intra Finance — Analyst

Okay. 10 years.

Gautam Seth — Joint Managing Director and Chief Financial Officer

So, three years of supply and then subsequently, I think about seven years of support. So, and then they would get their payments also in the eight years, I think, by equal like any EMI. So, that’s how it is structured, yes. So, yes, our focus is mainly on the supply of smart meters to the AMISPs and to the utilities, yes.

Subrata Sarkar — Mount Intra Finance — Analyst

Got it, sir. Sir, last small understanding, sir. Sir, let’s say somebody is quoting INR100 for AMISP. So, how much will be like — very approximately, how much will be sir, the meter supply out of that amount and how much will be maintenance O&M charges for over 10 years? Any rough idea like, is it 50-50 or what?

Gautam Seth — Joint Managing Director and Chief Financial Officer

It’s again, may be difficult to standardize, but yes, just as a ballpark figure, you can say 50% to 55% could be the meter costs and balance could be the other services which they provide over a period of time.

Operator

Thank you. We’ll move onto the next question that is from the line of Sriharsha, an Individual Investor. Please go-ahead.

Sriharsha — Individual Investor — Analyst

Afternoon, everybody and congratulations on delivering a good set of numbers.

Gautam Seth — Joint Managing Director and Chief Financial Officer

Thank you.

Sriharsha — Individual Investor — Analyst

Sir, is it possible to throw some light on the order booking for ’23, ’24 and the revenue and the EBITDA margin?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes, in terms of the order book what we have currently is around INR879 crore and we are also looking at a strong quarter as in Q4, but I still would say that despite a good quarter in Q4, our order book at the end of the year, at the end of March ’23 should be much higher than this level. So, in a way for the next year, when you look at the ’23-’24 the financial year, we do expect a strong order book at the start.

Now, when we look at the way both the businesses are structured, our metering, of course, has a very strong pipeline of tenders and inquiries. So, again we would hopefully get a couple of large orders going-forward. And so overall, if you see the revenue guidance, I probably will not put a specific number now, but maybe by the end-of-the year we should be able to give more specific guidance for both the divisions, but definitely it should be — on meters should be a high double-digits in that and even the other consumer and industrial also, I think, if you look at the last two and a half years, we have seen a good growth last couple of months has been a little slow, but I think as we get our act together, I think by next year also we should expect at least a decent, good, double-digit growth even in that. So, I don’t see any reason why that will not happen.

So, overall, I think this year the guidance what we have given at the start of the year, we are looking to achieve that with around over 20% growth. And I think almost a similar growth, something we should be able to look at next year as well.

Sriharsha — Individual Investor — Analyst

Okay. Another question, sir. You were saying that the order booking for smart meters is very huge. So, if you are able to get such huge orders, is it possible to — the requirement with the existing capacity or you are having any plans for expansion of the smart meter facility?

Gautam Seth — Joint Managing Director and Chief Financial Officer

I would say in terms of the outlook what we have even covering the next 15 months and a little beyond, I think we have the capacity to meet the requirements. You also have to understand that a lot of large orders, especially the orders coming in through the AMISPs, they are, they do have a supply time of almost 24 to 27 months. And plus there is also a time lag by the time the order supplies would start.

So, roughly, looking at the delivery schedules, I think even if one gets in large couple of orders with the pace of schedule of supplies what is there, that should be easily able to — we should be able to easily do it. I don’t see that as a constraint.

Sriharsha — Individual Investor — Analyst

Okay, sir, thank you. Thank you, sir.

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yeah, thank you, Mr. Harsha.

Operator

Thank you. The next question is from the line of Nidhi Sharma, an Individual Investor. Please go-ahead.

Nidhi Sharma — Individual Investor — Analyst

Good afternoon, everyone. Hello?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yeah, good afternoon, yeah.

Nidhi Sharma — Individual Investor — Analyst

Yeah, okay. So, I just had one question. Can you please highlight how we are expanding on our product portfolio, have we launched any new product in this quarter?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yeah. Just in this week, we have Elecrama, which is a very large exhibition which is happening in Greater Noida, very close to Delhi. And in fact, the product on display there are — I feel in each of the divisions what we have, whether it is metering, switchgears and switchgears also includes the industrial switchgear, the domestic switchgears and also the solar solutions what we have, wire and cable. So, each of the divisions we are launching a lot of products.

So, there is a new range of modular switches what we have, there are couple of new lighting products what we have here, also a couple of specialty cables which are, which we have been focusing on. So, this quarter, because by chance it coincides with the Elecrama Exhibition so, the teams have been working on a lot of new products and so, that’s how we have — so, there is a big range of products which are getting launched. And most of them are of course for immediate supply, but some of them we would be in the market by end of March or beginning of April.

Nidhi Sharma — Individual Investor — Analyst

All right. Thank you so much.

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes, thank you.

Operator

Thank you. [Operator Instructions] The next question is from the line of Aman from [Indecipherable] Investments. Please go-ahead.

Aman — — Analyst

Yes, thank you, ma’am. And sir, just to continue, I just want to — as claimed by us, we have nearly 20% to 25% of market-share in the Smart Metering and the Metering segment. And as as informed and also our tenders are worth INR10,000 crore have been floated by various state utilities. In this, I had two questions, sir. How much value of tender are we targeting? And which location are we targeting, is it, Delhi, Haryana Madhya Pradesh which particular state utility are we targeting, sir?

Gautam Seth — Joint Managing Director and Chief Financial Officer

So, if you see the — in terms of value of tenders, because for us we are not targeting all the — most of the AMISP orders. Although we are associated on looking to supply to the AMISP winners so, that’s how we are structured. But in all, if you look at it right now, anywhere between INR10,000 crore to INR15,000 crore is the specific requirements, what we had been either on tender inquiries or on inquiries from private players. So, there’s a huge amount of interest or inquiries which are floating around currently for the smart meter supplies. So, that is how we are looking at it.

Traditionally, if you see almost in the last 10, 15 years, our market-share has always been around 20% to 25% as you said. And we have maintained that even when the markets have been going up. So, our endeavor is also to firstly, ensure that we have that kind of a market-share, which, I think in terms of certain orders and what are getting finalized, we are maintaining that but as — but it’s too initial, it’s at a very initial stage. I think, when couple of more tenders come out then I think the market shares would probably settle down. But in terms of values, yes, it’s a huge requirement currently and we are participating.

Now, we are not anything — so, when we look at the business, we are a Pan-India player. So, we don’t as such distinguish between any location or something like that, but as and when the inquiries are coming out, we participate. So, practically in every state utility or even in the central utility, being private utilities, anywhere, wherever the requirements are coming, that is where we participate.

Apart — if you compare us with a lot of our competition, we also have a large consumer and industrial division. So, thanks to that, our meters also go into the private market in a big way. So, we have huge range of products be it meters on even meters on the secondary market. And so, that is what we — so, we also supply through the dealers, distributors or to even the real-estate or lot of the OEMs. So, in that term, the business potential of course is pretty large, going-forward.

Aman — — Analyst

Sir, just to add-on — just to ask on the follow up, have we added any new customers on-board, large customers in quarter 3?

Gautam Seth — Joint Managing Director and Chief Financial Officer

So in terms of — like you’re talking about smart meters?

Aman — — Analyst

Like volume of — like, say like, customer or a state utility which is, which we have an MoU with or which we have entered a formal agreement with for a certain level of order, which is not, which is little bit extraordinary, which is INR110 crore, INR150, that value?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yes. So, recently, we had announced that we had got an order of about INR162 crore from a private ability and so this was like a repeat order what we had got. And so, it’s of course a very reputed utility and — but this is again, we would expect going-forward much more repeat orders coming in.

Aman — — Analyst

On the same utility sir or from utilities or else?

Gautam Seth — Joint Managing Director and Chief Financial Officer

From a same private utility. And gradually, as we are seeing their systems are HPL Electric is a preferred smart meter supplier in their system now. So, over a period as they also get more committed, we would have much more repeat orders coming in and I think that is the idea of having dedicated customers in this because, smart meter is going to be a long-term game. So, in the sense that once a utility is putting those meters than they would, probably come back and we use more of those meters as and when the demands are growing. So, yes, the repeat business are coming and but each of these businesses are tender on tender, of course, as a private player, they might have some internal….

Aman — — Analyst

Sir, if you can just highlight like from revenue — how much revenue does we get from private — do we get from private player and how much tenders, — how much revenue do we get from tenders?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Right now, probably from that single utility, we have orders worth almost, let’s say, INR320 crore or INR330 crore, but you have to realize that it’s too early right now, because we are into just about few months into the whole supplies of the smart meters.

Aman — — Analyst

What is the turnaround period of this order, are we satisfying in three months or what is the turnaround period?

Gautam Seth — Joint Managing Director and Chief Financial Officer

So, these are almost six to nine months, I would say, so that’s why repeatability will happen, but if you look at the other….

Aman — — Analyst

Is there a formal agreement, sir or?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Sorry?

Aman — — Analyst

Is there a target of this much as to be achieved in supply, is it there in a pipeline or is it one-time as and when required, there is the orders?

Gautam Seth — Joint Managing Director and Chief Financial Officer

No, they would, I think they would — this is their, it’s of course their decision. So, I cannot answer on that behalf, but typically each one would have their purchase strategies. But if you look at the AMISPs, I think they are looking at much longer duration for procurement. So, the tenders are larger and the supply periods are also minimum three years and then extending on to the maintenance part. But as a private player, yes, we have a choice, but I think the requirements what we currently have is almost six to nine months, but that can change based on their choice.

Operator

Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Mudit Kabra for his closing comments.

Mudit Kabra — Elara Securities Private Limited — Analyst

Thank you, Lisan. We would like to thank the management of HPL Electric & Power for giving us an opportunity to host this call. We would also like to thank all investors and analysts for joining the call. Any closing remarks you’d want to make, Gautam, sir?

Gautam Seth — Joint Managing Director and Chief Financial Officer

Yeah, I’d just like to thank everyone for joining on this call and I just feel that the opportunity again, whether we take smart meters or even our consumer electrical business, I think that remains pretty strong going-forward. And as management, we are well committed to ensure that we achieve the objectives of the company. So, in case, — so, thank you all. And in case of any query, you may contact Dickenson or us directly for that and I wish you all a great evening. Thank you. And we can close the call now.

Operator

[Operator Closing Remarks]