Telecom Cables company HFCL announced Q2FY25 results Revenue of Rs 1012 crore, change -1.61% YoY. EBIDTA of Rs 161 crore, change +14.72% YoY. EBITDA margin 15.71%, change +224 bps YoY. PBT of Rs 104 crore. PAT of Rs 75 crore, change +4.50% YoY. PAT margin 6.71%, change +40Bps YoY. Mahendra Nahata, Managing Director, HFCL said: “Quarter 2 was marked by few significant milestones- HFCL delivered one of the world's largest advanced broadband network gateway projects for BSNL. HFCL also entered into a strategic partnership with General Atomics Aeronautical Systems Incorporated (GA-ASI), US, to develop critical sub-systems for one of the world’s most sophisticated unmanned aerial vehicles (UAVs).This partnership underscores our capabilities in the defense sector and opens more export opportunities for us. We are also in advanced stage of discussions for export of our indigenously designed and developed Electronics Fuzes in the global market”. Nahata further added:, “During the quarter under review we delivered steady performance despite the ongoing softness in demand for Optic Fiber Cables worldwide. Further, monsoon season in several parts of the Country impacted execution of work, causing some revenue to spill over into the next quarter”. Nahata further mentioned that: “The Company has started receiving global enquiries for optic fiber cables indicating early signs of recovery in the coming quarters. Going ahead, our focus on launching new products, conscious shift towards margin-accretive products, increasing our share of private customers and expanding our international business will definitely result in improved revenue and profitability”. Result PDF
Telecom Cables company HFCL announced Q1FY25 results: Revenue: Rs 1,158 crore, QoQ change of -12.66%, YoY change of +16.38% EBITDA: Rs 185 crore, QoQ change of -11.43%, YoY change of +16.13% EBITDA Margin (%): 16.00%, QoQ change of +22 Bps, YoY change of -4 Bps PAT (Profit After Tax): Rs 111 crore, QoQ change of +1.18%, YoY change of +46.44% PAT Margin (%): 9.55%, QoQ change of +130 Bps, YoY change of +196 Bps Commenting on the Company’s performance, Mahendra Nahata, Managing Director, HFCL said, “Amidst geo- political challenges, India stands out with its political stability and resilient economy, positioning itself as a prime investment destination. The technology and telecom sectors are going to play a vital role in achieving Country’s vision of ‘Viksit Bharat@2047’. The growing demand for high-speed internet, the expansion of 5G networks, FTTH implementation, hyper-scaling of data centres, advancements in Artificial Intelligence & Machine Learning, BharatNet- Phase III Project, the PLI scheme and the thrust on indigenous development and procurement of defence equipment, present substantial opportunities for us both in domestic and global markets. HFCL’s investments in R&D; for Telecom & Networking Products, Defence equipment and Optical fiber cables, capacity expansion and backward integration have positioned us to leverage these opportunities in the upcoming quarters. With a significant tilt towards margin-accretive products, shift from government to private customers and a growing share of international business will result into improved profitability." He further added that, “In Q1 FY25, we achieved a significant strategic milestone. We are proud to be recognized by the European Commission as the only Indian company exempt from anti-dumping duties on optical fiber cables bolstering our competitive edge in the European market. We are highly optimistic about the BharatNet - III opportunity. HFCL is exceptionally well-positioned to supply its own designed and developed products, including optical fiber cables, routers, and passive connectivity solutions. Our routers and optical fiber cables are specifically designed for rugged use in rural environment. The increasing demand for our 5G Fixed Wireless Access (FWA) Customer Premises Equipment, Point-to-Point Unlicensed Band Radio (UBR), routers, switches, and other telecom and networking products eligible for PLI benefits is solidifying HFCL's position as a leading supplier in key markets. We firmly believe that these products will make a substantial contribution to our revenue and profitability. The global optical fiber cable market is currently experiencing a slowdown. However, it is anticipated that the market will begin to see growth again from the last quarter of current financial year 2024-25. To mitigate the impact of this slowdown on its optical fiber cable revenue, HFCL has expanded its business and market share in Passive Connectivity Solutions, targeting both telcos and data center segments. The Indian defence sector is experiencing robust growth, driven by focus on local manufacturing which is favorable for companies like ours. We have developed a comprehensive portfolio of defense products which is gaining traction both in domestic and in select global markets. We are in advanced discussions with companies in several countries to export our defense products, including electronic fuzes. As we expand our order book and strengthen our position in public communication networks and defence products, we are confident that our strategic initiatives will drive sustained revenue growth and enhance profitability. Result PDF