HFCL Achieves Steady Performance with Diverse Product Portfolio

Bengaluru, 25 July, 2024: HFCL Limited (‘HFCL’), India’s 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 30^th June, 2024.

Consolidated Financial Highlights – Q1FY25

On a standalone basis, the Company reported quarterly revenue of ₹1066 Crores, EBIDTA of ₹177 Crores, PBT of ₹123 Crores and PAT of ₹114 Crores.

Commenting on the Company’s performance, Mr. 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, FTTH implementation, hyper-scaling of data centres, advancements in Artificial Intelligence & Machine Learning, BharatNet- Phase III Project,  the PLI scheme and the thrust on indigenous development and procurement of defence equipment, present substantial opportunities for us  both in domestic and global markets.

HFCL’s investments in R&D for Telecom & Networking Products, Defence equipment and Optical fiber cables, 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.”

Mr. Nahata further added that, “In Q1 FY25, we achieved a significant strategic milestone. We are proud to be recognized by the European Commission as the only Indian company exempt from anti-dumping duties on optical fiber cables 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 optical fiber cables, routers, and passive connectivity solutions. Our routers and optical fiber cables 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 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 optical fiber cable market is currently experiencing a slowdown. However, it is anticipated that the market will begin to see growth again from the last quarter of current financial year 2024-25. To mitigate the impact of this slowdown on its optical fiber cable revenue, HFCL has expanded its business and market share in Passive Connectivity Solutions, targeting both telcos and data center segments.

The Indian defence 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 fuzes.

As we expand our order book and strengthen our position in public communication networks and defence products, we are confident that our strategic initiatives will drive sustained revenue growth and enhance profitability.”