HFCL Limited has announced its unaudited financial results for the quarter and half year ended September 30, 2023. On a standalone basis, the company reported revenue of Rs 11.11 billion as against Rs 11.73 billion in the same quarter last year. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the reported quarter was Rs 1.49 billion, while the EBITDA margin was 13.47 per cent. The company registered a profit after tax (PAT) of Rs 701.7 million and PAT margin of 6.31 per cent. For Q2FY24, the company reported a standalone revenue of Rs 10.02 billion, EBITDA of Rs 1.32 billion, profit before tax (PBT) of Rs 902.5 million and PAT of Rs 675.5 million.
Commenting on the results, 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 per cent 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 start of 5G rollout. As a prominent player in optical fibre cables, telecom and networking products and network solution offerings, HFCL continues to demonstrate sustainable performance. During this quarter, the company has witnessed softening in demand for optical fibre cable (OFC) and telecom and networking products from the telcos, resulting into decline in product revenue both on quarter on quarter and year on year 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”.
Nahata added, “With our focus on innovation and R&D, we have made significant progress in designing and developing indigenous telecom products and solutions, to meet the significant upcoming demand for fiberisation and 5G network infrastructure in India and key global markets like the US, Middle East, France and Germany. We have taken continued efforts to design and develop next-gen products like OFCs for international markets, 5G access and transportation equipment and 5G backhauling products which will significantly boost our revenue and margins going ahead. The company recently launched its revolutionary intermittently bonded ribbon (IBR) cable in the UK and showcased high-fibre density flat ribbon cable in the US to address the fiberisation challenges and evolving needs of the international customers”.