HFCL Limited has announced its unaudited financial results for the quarter ended June 30, 2024. The consolidated revenue stood at Rs 11.58 billion, an increase of 16.38 per cent from Rs 9.95 billion in the corresponding quarter in 2023.
The earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 16.13 per cent from Rs 1.6 billion to Rs 1.85 billion during the reported period. Meanwhile, the consolidated profit after tax (PAT) increased from Rs 760 million to for the company was Rs 1.11 billion.
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, fibre-to-the-home (FTTH) implementation, hyper-scaling of data centres, advancements in artificial intelligence (AI) and machine learning (ML), BharatNet- phase III project, product-linked incentive (PLI) scheme and thrust on indigenous development and procurement of defence equipment, present substantial opportunities for us in domestic and global markets. HFCL’s investments in research and development (R&D) for telecom and networking products, defense equipment and optical fibre cables (OFCs), 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.”
Nahata added, “In Q1 FY25, we achieved a significant strategic milestone. We are proud to be recognised by the European Commission as the only Indian company exempt from anti-dumping duties on OFCs 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 OFCs, routers, and passive connectivity solutions. Our routers and OFCs 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 (P2P) 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 OFC market is currently experiencing a slowdown. However, it is anticipated that the market will begin to see growth again from Q4 FY25. To mitigate the impact of this slowdown on its OFC revenue, HFCL has expanded its business and market share in passive connectivity solutions, targeting both telcos and data center segments. The Indian defense 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 fuses. As we expand our order book and strengthen our position in public communication networks and defense products, we are confident that our strategic initiatives will drive sustained revenue growth and enhance profitability.”
