HFCL delivers resilient performance led by innovation; launched telecom and networking products for global market

HFCL Limited (“HFCL”), 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 sectors announced its audited financial results for the fourth quarter and year ended 31st March, 2024.

Consolidated Financial Highlights – FY24

For the financial year ended 31st March, 2024, the Company reported on standalone basis, Revenue of ₹ 4075 Crores, EBIDTA of ₹ 586 Crores, PBT of ₹ 412 Crores, and PAT of ₹ 310 Crores.

Consolidated Financial Highlights – Q4FY24

On standalone basis, the Company reported a quarterly revenue of ₹ 1238 Crores, EBIDTA of ₹ 199 Crores, PBT of ₹ 153 Crores and PAT of ₹ 115 Crores.

Commenting on the Company’s performance, Mr. Mahendra Nahata, Managing Director, HFCL said, “that with Government of India’s progressive policies India is poised to become the third-largest economy by 2027 due to its resilience and promising growth prospects, surpassing Japan and Germany.

At HFCL, with our multi-pronged approach centering around robust investments in research and development, backward integration, capacity expansion and expanding national and international presence, we have been able to significantly improve on revenue mix; product mix; customer mix and geographical presence ensuring sustainable growth.

We conclude FY24 on a positive note and at HFCL, we are delighted to witness a meaningful shift in demand for our communication products, 5G and defense equipment. Our order book has increased to ₹7685 Crores in FY24 as compared to ₹7010 Crores in FY23, led by significant multi-million order wins from various reputed customers. HFCL continued its focus on increasing revenue from margin accretive products, expansion of capacities coupled with high-level vertical and horizontal integration in Optical Fiber Cable (OFC), and huge impetus on R&D.”

He further added, FY 23-24 has witnessed slight decline in YoY revenue due to the softening in demand of OFC. This temporary decline is in line with the worldwide trend. It is attributed to inventory built-up with major operators, resulting in an overall reduction in revenue in absolute terms as well as lower sales realisation per kilometre of fiber.

We are filled with optimism for the upcoming fiscal year, led by opportunities arising from OFC, BharatNet-III, 5G, ‘Make in India’ in defence sector and key international markets including North America, Europe, UK, Middle East and Africa. While FY23 and FY24 were marked by significant investments in building products led by innovation, we believe HFCL is now ready to capitalize on its innovative 5G product portfolio, coupled with OFC and opportunities in network integration and defence sector. We have made a strategic move of setting up of OFC manufacturing plant in Poland to expand our presence in European market in line with our strategy of tapping new geographies and new customers.

We are optimistic about outlook for demand of telecom equipment and also on restoration of OFC demand from Q2FY25 onwards both in India and key global markets. We are also confident that our continued efforts in designing and developing innovative and geography specific optical fiber cables for international markets, along with the introduction of new 5G telecom networking equipment and defence products, will yield even better results in coming quarters. These efforts are expected to provide impetus to both revenue growth and profitability along with the potential to increase our margins.”