In Q1FY24, HFCL’s revenue declines 31% from Q4FY23 and 5% from Q1FY23

HFCL Limited, a leading technology enterprise with operations in manufacturing of high-end telecom equipment, optical fiber and optical fiber cables and offering communication network solutions for telcos, defence and railway sector announced its Un-audited financial results for the first quarter ended 30th June, 2023.

Commenting on the Company’s performance, Mr. 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 ₹ 176.23 crores witnessing a growth of 156% on a Y-o-Y 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 same quarter last year. Revenue from private customers has also increased significantly in last few quarters.”

Mr. 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 a number of 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.

Consolidated Financial Highlights – Q1FY24

On a standalone basis, the Company reported quarterly revenue of ₹ 880.32 Crores, EBIDTA of ₹ 108.55 Crores, PBT of ₹ 65.52 Crores and PAT of ₹ 48.75 Crores.

CT Bureau