HFCL Limited has announced its unaudited financial results for the quarter ended June 30, 2023. On a standalone basis, the company reported revenue of Rs 9.95 billion as against Rs 10.51 billion in the same quarter last year. Revenue from international business grew by 156 per cent in Q1FY24 as compared to Q1FY23. Export and product revenue compound annual growth rate (CAGR) for the last three years stood at 88.02 per cent and 46.04 per cent respectively.
Meanwhile, earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the reported quarter was Rs 1.59 billion, while the EBITDA margin was 16.04 per cent. The company registered a profit after tax (PAT) of Rs 755.6 million and PAT margin of 7.59 per cent.
For Q1FY24, the company reported a standalone revenue of Rs 8.80 billion, EBITDA of Rs 1.09 billion, PBT of Rs 655.2 million and PAT of Rs 487.5 million.
Commenting on the results, 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 and development, tapping new geographies and widening customer base. During Q1FY24, we have significantly increased revenues from international business to Rs 1.76 billion witnessing a growth of 156 per cent on a year-on-year (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 per cent in Q1FY24 as compared to 59 per cent in the same quarter last year. Revenue from private customers has also increased significantly in the last few quarters.”
Nahata added, “The company has entered into a significant partnership with Bharat Electronic Limited, India’s largest defence public sector undertaking (PSU), for a two-year memorandum of understanding (MoU) to develop indigenous technologies for defence, telecom, and railway sectors. As we are seeing strong fibre demand from our customers across the globe, we have revised our optical fibre manufacturing capacity expansion plan upwards by about 300 per cent to 33.90 million 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. Open-source Wi-Fi 7 access points developed in collaboration with Qualcomm, will also be available within the current financial year.”
