Telecom Cables company HFCL announced Q2FY24 results: The order book stands at Rs 7,078 crore, up from Rs 5,280 crore in Q2FY23, indicating an increase in the order backlog. Revenue in Q2FY24 is Rs 1,111.49 crore, which represents an increase of 11.69% compared to Q1FY24. However, when compared to Q2FY23, there is a decrease of 5.28%. In Q2FY24, EBIDTA is Rs 149.77 crore, which reflects a decrease of 6.17% compared to Q1FY24 and a more substantial decrease of 14.22% compared to Q2FY23. EBIDTA margin for Q2FY24 is 13.47%, which is a decrease of 257 basis points (bps) from Q1FY24 and a decrease of 141 bps from Q2FY23. PAT for Q2FY24 is Rs 70.17 crore, which is lower 7.13% compared to Q1FY24 and 16.77% lower compared to Q2FY23. PAT margin for Q2FY24 is 6.31%, reflecting a decrease of 128 bps from Q1FY24 and a decrease of 87 bps from Q2FY23. On a standalone basis, the company reported quarterly revenue of Rs 1,001.76 crore, EBIDTA of Rs 131.85 crore, PBT of Rs 90.25 crore, and PAT of Rs 67.55 crore. Commenting on the Company’s performance, Mahendra Nahata, Managing Director, HFCL said, “Despite challenging macroeconomic conditions across different regions and also the uncertainties triggered by Global conflicts, the international monetary fund has revised the growth rate forecast to 6.3% for India due to its robust growth prospects. Indian telecom industry stands resilient and India has emerged as among the top three 5G ecosystems in the world within just a year from the start of the 5G rollout. As a prominent player in optical fiber cables, telecom and networking products, and network solution offerings, HFCL continues to demonstrate sustainable performance. During this quarter, the Company has witnessed a softening in demand for OFC and telecom and networking products from the telcos, resulting in a decline in product revenue both on a QoQ and YoY basis. The temporary decline is attributed to an inventory built-up with major operators, resulting in an overall reduction in revenue in absolute terms both domestically and in the international markets”. Result PDF
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