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HPL Electric & Power Ltd
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Ladies and gentlemen, good day, and welcome to the HPL Electric & Power Limited Q3 FY '23 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.
Thank you, Nijan. Welcome everyone. On behalf of Elara Securities, we welcome you all for the Q3 FY '23 and 9 months FY '23 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.
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 earnings call to discuss the financial and operating performance for Q3 and 9 months of FY '23.
To begin with our financial performance, Q3 and 9 months of FY '23 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 INR 900 crores compared to INR 689 crores in the previous year. The quarterly revenue also increased by 8% in Q3 to INR 302 crores.
EBITDA grew by 41.26% year-on-year in 9 months to reach INR 112 crores. EBITDA margin expanded by 94 basis points and stood at 12.48%.
As far as our business segments are concerned, the Metering and Systems segment registered a robust growth of 60% year-on-year in 9 months FY '23 and 46% growth in the Q3 FY '23. The Consumer and Industrial segment registered a growth of 8% in the 9 months of FY '23.
Meeting 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 the segment and continue to grow with new inquiries 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-paced development that the country is going through.
We're already receiving regular orders for 5G rollout and are hopeful of crossing over INR 150 crores business in the 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 Fed goals and share 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 INR 879 crores , which we anticipate will drive the business in the future. Moreover, with the tender and inquiry 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 event later this week in Delhi.
Looking at the next quarter and the future, our growth strategy is centered on increasing market share, generating the healthy profits, acquiring new customers and penetrating further into promising markets. We are doing this by introducing greater operational and financing efficiences 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.
[Operator Instructions] The first question is from the line of [ Aman ] from [ Cabot ] Investments.
Yes, sure. Am I audible, sir?
Yes, Aman. Please go on.
Yes, sure. Yes. First of all, yes, congratulations on a good number, sustainable numbers. Sir, I had a couple of questions. What type of market growth are you looking in electrical and metering segment going forward, sir? And in terms of percentage, what are you looking on a [ C&I ] basis?
Yes. So by electrical, you mean the Consumer and Industrial or...
Yes, Consumer and Industrial parts.
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 INR 504 crores in the metering.
There are a 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 orders 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, the -- there have 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 few 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 2 years have been pretty good after the first and the second lockdowns. We have seen a steady growth in this segment. Unfortunately, only in the last 4 months, we have seen certain stagnation happening at those, and the growth 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 growth 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.
So in all aspects, we do see ourselves growing in the -- a little ahead of the market, and in fact, garnering the market share. For the last 2 years, we have seen certain steady growth. But I think what has happened is a little more temporary, but I'm sure the growth would come back. That also would be reaccretion at double-digit growth going forward.
Yes, going forward, now we are currently going towards 12% to 15% of EBITDA. Going forward, and volume also comes in, do we see that EBITDA margin to be at the same level? Or are we seeing it to move forward 20% to 25% margin levels?
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 while...
And metering Segment, sir...
It's much more -- yes, sorry?
And metering business?
Yes. 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 meter 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 starts shifting all to the smart meter.
Sir, Power Grid has recently announced a tender of 1 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, who are then distribution companies. Are you seeing it too as in be for rental or sales? Have you seen it for a sales or are you also planning in the rental repurpose?
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 the subsidiary in Marshal Energy, both are approved as an AMISP. 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 8 years. It does involve a lot of initial CapEx handling 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. So in that also, if you look at most of the AMISPs who are participating, we are approved with them or other -- they are approved using our meters as a [ test case ]12.36 for approval here.
Okay. Okay, sir. Sir, just wanted to know what is our current level of capacity which we are running at?
In meters, I would say there is definitely there's 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 a number of times in earlier calls also that these -- the capacities can be taken on a little flexible basis because the -- to do the upside is much more easier in terms of putting in certain resources in terms of manpower or even working on 2 or 3 shifts.
So although some part of our capacities are running on 2 or 3 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 of late, in the last 6 months, we have been investing into certain kinds of automation. And that is again going to give us a better output in terms of...
Is the automation are in those R&D? Or are we doing JV, sir?
No. This automation I'm talking about is in the manufacturing process. So in terms of testing, in terms of -- so there are a couple of -- a lot of areas now which are more continuous processes, which can be done by even unmanned or even...
Okay. And going forward, do we feel the need of adding shifts as you mentioned, sir, adding more workers into the production side? Do we see the need of this?
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 the 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...
So the [indiscernible] revenue projection is what do we...
[Operator Instructions]
Aman, your voice is not clear.
Am I audible now?
Yes.
Yes, yes. So this growth in revenue trajectory, what type of quarter 4 do we see? Will it be -- could 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...
Aman, just -- sorry, I couldn't get the first part of your question.
Sir, I was just 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 has been postponed to quarter 4 or the coming year? Or we are in the initial stages of realizing the revenues from larger contracts?
Oh, so you were talking about meters?
Yes, meters particularly
In the meters and the systems division, we have done INR 169 crores net of the taxes. So I think in a way, 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. And 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 predispatch.
Sometimes it does happen that some materials are ready and will 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 address schedules for the Q4. And I think that would be -- they are already underway, and we should be able to achieve our target what we have internally for the current quarter.
Got it. Okay, sir. Sir, this year, we have done...
We request that you return to the question queue for the participants waiting.. The next question is from the line of Subrata Sarkar from Mount Intra Finance .
Hello?
Yes. Yes, sir. Please go on.
Yes, sir. Sir, a few questions. First, on the metering side, sir. So metering that we have seen like a lot of tender has been floated on the AMISP level and a few of our companies, the competitors are actually bidding for AMISP order also. So I suppose we do want to beat on the AMISP if you can clarify on that. Number one, sir.
Second, sir, we have received the order. So I have 2 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 this metering about the working capital requirements, sir. Are we -- we already have around INR 500 crores like date 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.
Yes, sure. So in terms of our capacity, our normally declared capacity is at 9 million meters, which is 9,000,000 meters. So I think we can do anything between 9 million to 10 million meters based on our current capacity.
So currently, as I 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, all those suppliers and the inquiries which are coming are very large. But I think there is a 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 constraint right now on that. As I said earlier in my last reply, that there is 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 cost of production per 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 higher. The better 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 of course, it's now in the initial stage, but as this picks on, but it picks up much more, we definitely should see an improvement in the working capital cycle going forward.
So because this would be supply against either on LCs against bank LCs. And thereafter, they are taking the responsibility as an AMISP and financing it for the 8 or 9 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 private utilities and also with the AMISPs with most of the AMISPs you see around right now, they have all been -- have already tested our meters, and the inquiries are on. So we do hope big orders to come by from this 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 for 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 AMISP 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 4 months, we have seen certain sluggishness in demand or like slow sales. But prior to that, if you see the growth in the last 2 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 we focus 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, a 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 -- a big cause of concern or something like that in that. But yes, in the market, it may happen in one of the month, sometimes we do see certain slowdowns in a day.
Okay. Sir, one follow-up on the -- on our capacity sir. You told like 900 -- sorry, 9 million is our total capacity, sir. Hello?
Yes, please.
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 -- you have given it in terms of volume, some idea about the revenue also because you understand that the almost smart meter cost, the price is almost 3x to that ordinary meter.
So if you can give some monetary numbers also like this give 900 -- 9 million rather transferred into how or what kind of it like rupee number also, sir, particularly since now there is 2 type of meters, so vis-a-vis. And how much is -- we can do in terms of smart meters?
Yes. So in terms of -- if you see currently, although most of the tender inquiries are now of smart meters, but also we have still seen that even the conventional electronic meters, the demand is still good. And a lot of state utilities are also giving those orders. So even that flow is continuing.
And even in the [indiscernible], we do see that also to continue. If you look at our own order book of over INR 500 crores, about 60% plus is right now is smart meters. 40% is almost of the conventional electronic meters.
So by the time these changes, it may take some time until the smart meter becomes 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 having 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.
In terms of value, yes, the per unit cost of meter along with a 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 an estimate without listing on what the values can be.
But in terms of -- if you look at the market size, the way the sector grow or even the tenders which are there, which currently would be in excess of even INR 10,000 crores or even much higher than that. So I think overall, the values are set to grow once the quantity converts to the smart meters, yes.
Sir, the current smart meter unit price is around INR 5,500, INR 6,000, sir. Is it right understanding?
No, it depends on the tenders and depends on order to order around what the customer wants. So it is -- yes, it can be that, it can be even higher, higher than that. It depends on what are the requirements for meters.
Okay. But sir, INR 6,000 around is okay or it can be higher, sir, but like around INR 5,500,INR 6,000 is the right assumption, but any ballpark number?
No, it would be difficult or to just a 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 3x or 5x higher than what the conventional meters are. But that again depends purely on the customer requirements, the tender terms, the other structuring, what the...
Got it, sir. But sir, we are only like, sir, as per my understanding, there are 2 parts of that business. One is the upfront selling of the meter, and the second is the kind of AMC cost, sir, AMC charges. So we are only on the like manufacturing part of that business right now.
Yes. Right now, we are looking at supplying the smart meters. If you have 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 this is, that becomes the role of the AMISP. But then that is spread over the period of overall 10 years.
10 years. 10 years, sir.
3 years of supply and then subsequently, I think about 7 years of support. So -- and then they would get their payments also in the 8 years, I think by equal like an EMI. So that's how it is structured here. So yes, our focus is mainly on the supply of smart meters to the AMISPs and to the utilities.
Got it, sir. Sir, the last step small understanding, sir, let's say, somebody is hoping that INR 100 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, sir? Any rough idea like is it 50-50 or what?
It's -- again, it may be difficult to standardize. But yes, just as a ballpark figure, you can say 50% to 55% could be the meter cost, and balance could be the other services, which they provide over a period of time.
We'll move on to the next question. That is from the line of [Sri Harsha ], an individual investor.
Congratulations on delivering a good set of numbers.
Thank you.
Is it possible to fall back to throw some light on the order booking for '23, '24 and the revenue and the EBITDA margin.
Yes, in terms of the order book, what we have currently is around INR 879 crores, 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 we 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 a more specific guidance for both the divisions.
But definitely, it should be -- at least some data should be high double digits in that. And even the other Consumer and Industrial also, I think if you look at the last 2.5 years, we have seen a good growth. The last couple of months has been a little slow, but I think as we add 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.
Okay. Another question, sir. You are saying that the order booking for smart meters are very huge. So if you are able to get such huge orders, like is it possible to hit the requirement to the existing capacity? Or you are having any plans for expansion of the smart meter facility?...
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 schedule, I think even if one gets in a 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.
The next question is from the line of [ Nidhi Sharma ], an individual investor.
Yes. Okay. So I just had one question. Can you please highlight how we are expanding on our product portfolio? Have you launched any new products earlier in this quarter?
Yes. 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, switchgear, and switchgears also includes the industrial switchgear, the domestic switchgear and also the -- these are solutions that 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 a 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's 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.
[Operator Instructions] The next question is from the line of Aman from [indiscernible] Investments.
Sir, just to continue on this one. Sir, as clearly , we have nearly 20% to 25% of market share in the smart metering and the metering segment. And as informed and also there are tenders over INR 10,000 crores have been floated by various state utilities.
In this, I have 2 questions, sir. How much value of tender are we targeting? And which location are you targeting? Is it Delhi, Haryana ? Which particular state into we are targeting, sir?
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 INR 10,000 crores to INR 15,000 crores is the specific requirements, what we have 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, you can 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 it's too initial -- it's at a very initial stage, I think when a 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. We are not anything -- so when we look at the business, we are in 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 a 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 a huge range of products [indiscernible] [ meters or even meters ] on the secondary market. And so that is what we -- so we also supply through the dealers, distributors or even through even the real estate or lot of the OEMs. So in that term, the business potential, of course, is pretty large going forward here.
Sir, just to add on -- just to ask on the follow up, have we added any new customers, onboard large customers in quarter 3?
Well, in terms of -- like you're talking about...
Like, say, like customer or a state utility, which is -- which we have MOU with or which we have entered a formal agreement with for a certain level of order, which is not -- which is [indiscernible] [ INR 10 crores or INR 15 crores ]...
Recently, we had announced that we had got an order of about INR 162 crores from a private utility. And so this was like a repeat order of what we have 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 and...
From the same utility, sir, or from other utilities?
From the same private utility. And gradually, as we have seen their systems are -- HPL Electric is a preferred smart meter supplier in their system now. So over a period, As we 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, then they would probably come back as they use more of those meters as and when the demands are growing. So yes, the repeat businesses are coming. And -- but each of these businesses are tender on tender. Of course, as a private player, they might have some...
If you can just -- if you think in private like from revenue from -- how much revenue does we get from private -- do we get from private player? And how much tenders -- how much revenue do you get from tenders?
Right now, probably from that single utility, we have orders worth almost, let's say, INR 320 crores or INR 330 crores. 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.
What is the turnaround period of these orders? For all these incentives and increments are or what is the turnaround period?
These are almost 6 to 9 months, I would say. So that's why the repeatability will happen. But...
Is there a formal agreement, sir or like...
Sorry?
Is there a target of this much has to be and to achieved in supply? Is it there in the pipeline? Or is it onetime and as in [indiscernible] required there is the orders?
So 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 minimum 3 years and then extending on to the maintenance part.
But as a private player, we have a choice. But I think the requirements, what we currently have is almost 6 to 9 months, but that can change based on their choice.
Ladies and gentlemen, that was the last question. I now hand the conference over to Mr. Kabra for his closing comments.
Thank you, Nijan. 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 our investors and analysts for joining the call. Any closing remarks you would want to make, Gautam, sir?
Yes, 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 here. So in case -- so thank you all. And in case of any queries, you may contact Dickenson or us directly for that. And I wish you all a great evening here. Thank you, and we can close the call now.
Thank you. Ladies and gentlemen, on behalf of Elara Securities Private Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.