Telecom cables company HFCL announced Q1FY24 results: Revenue in Q1FY24 stands at Rs 995.19 crore as against Rs 1,051.02 crore in Q1FY23 Revenue from international business grew by 156% in Q1FY24 as compared to Q1FY23 Export and product revenue CAGR for the last 3 years stands at 88.02% & 46.04% respectively EBIDTA margin increases to 16.04% in Q1FY24 as compared to 12.35% in Q1FY23 PBT margin increases to 10.30% in Q1FY24 as compared to 6.75% in Q1FY23 PAT margin stands at 7.59% in Q1FY24 compared to 5.05% in Q1FY23 CARE upgrades short-term credit rating to A1 from A2+ Order book stands at Rs 6,584.71 crore On a standalone basis, the Company reported quarterly revenue of Rs 880.32 crore, EBIDTA of Rs 108.55 crore, PBT of Rs 65.52 crore, and PAT of Rs 48.75 crore. Commenting on the company’s performance, Mahendra Nahata, Managing Director, HFCL, said, “Despite the volatile global macroeconomic environment, the Indian telecom industry looks promising and is expected to emerge as one of the top 5G ecosystems in the entire world. HFCL has also sustained its growth momentum with its strategic initiatives focusing on margin accretive products, shift in revenue mix from projects to products, backward and horizontal integration, capacity expansion, research & development, tapping new geographies and widening customer base. During Q1FY24, we have significantly increased revenues from international business to Rs 176.23 crore witnessing a growth of 156% on a YoY basis. HFCL’s strategy to focus on increased revenue from products, expand its capacities, and tap into new geographies has resulted in an increase in the product revenue share to 67% in Q1FY24 as compared to 59% in the same quarter last year. Revenue from private customers has also increased significantly in the last few quarters.” Nahata, outlining HFCL’s strategic moves, added, “The company has entered into a significant partnership with Bharat Electronic Limited, India's largest defense PSU, for a two-year MOU to develop indigenous technologies for Defense, Telecom, and Railway sectors. As we are seeing strong fiber demand from our customers across the Globe, we have revised our optical fiber manufacturing capacity expansion plan upwards by about 300% to 33.90 mn fkm/p.a. The proposed expansion will bolster our margins and also ensure supply chain stability. The Company is developing several products for 5G networks which are expected to start being commercially available in the current financial year. He further added that open-source Wi-Fi 7 Access Points developed in collaboration with Qualcomm, will also be available within the current financial year." Result PDF
Telecom cables company HFCL announced Q4FY23 & FY23 results: Consolidated Q4FY23 vs Q3FY23/Q4FY22: Revenue: Rs 1,433 crore vs Rs 1,086 crore (31.97% QoQ change); Rs 1,183 crore (21.13% YoY change) EBIDTA: Rs 168 crore vs Rs 194 crore (13.01% QoQ); Rs 154 crore (9.43% YoY) EBIDTA Margin: 11.74% vs 17.80% (-606 bps QoQ); 12.99% (-125 bps YoY) PAT: Rs 79 crore vs Rs 102 crore (-22.57% QoQ); Rs 68 crore (15.49% YoY) PAT margin (%): 5.49% vs 9.36% (-387 bps QoQ); 5.76% (-27 bps YoY) Consolidated FY23 vs FY22: Revenue: Rs 4,743 crore vs Rs 4,727 crore (0.34% YoY) EBIDTA: Rs 665 crore vs Rs 692 crore (-3.91% YoY) EBIDTA margin (%): 14.04% vs 14.66% (-62 bps YoY) PAT: Rs 317 crore vs Rs 326 crore (-2.50% YoY) PAT Margin (%): 6.70% vs 6.89% (-19 bps YoY) Revenue in FY23 from international business grew by 125% YoY Revenue from private customers increased to 83% in FY23 from 68% in FY22 For FY23, the company reported on a standalone basis, revenue of Rs 4,396 crore, EBIDTA of Rs 516 crore, PBT of Rs 342 crore, and PAT of Rs 255 crore On a standalone basis, the company reported Q4FY23 revenue of Rs 1,323 crore, EBIDTA of Rs 114 crore, PBT of Rs 69 crore, and PAT of Rs 51 crore Commenting on the company’s performance, Mahendra Nahata, Managing Director, HFCL, said, “Amidst the global economic challenges India remains a promising economy and is expected to emerge the fastest-growing in the world. Our company has also been able to withstand the economic challenges and has shown sturdy performance in FY 22-23. The company remains focused on its strategy of increasing revenue from margin-accretive products, expansion of capacities coupled with high-level backward integration, huge impetus on R&D;, increased customer base, and geographical expansion. During FY23 we have significantly increased revenues from international business to Rs.817 crores from Rs 363 crores in FY22 witnessing a growth of 125% on a YoY basis. Our continued focus on creating and expanding capacities and tapping new geographies has not only led to an increase in the share of product revenue to 56% in FY23 as compared to 43% in FY22 but also resulted in an increased share of revenue from private customers to 83% in FY23 from 68% in FY22. We believe that our strategic initiatives will position us well for long-term success. He further added that “the company is expanding its optic fibre capacity from existing 10mn fkm to 25mn fkm and optic fibre cable capacity from 25mn fkm to 35mn fkm by FY25. The company is simultaneously developing various 5G Radio Access Network Products, Transport products, and broadband wireless products which are expected to be launched during the current financial year. These initiatives will not only add to the revenue but will also increase the profitability of the company significantly. We are excited about the future of HFCL and look forward to continuing our commitment to delivering innovative communication solutions that connect people and business Worldwide.” Result PDF