The shares of one of the leading telecom infrastructure manufacturers with Jio, Airtel, and many others as customers jumped upto 5 percent in the day’s trade upon declaring its Q1FY25 results with a 46 percent jump in Net Profits.
Price Action
With a market capitalization of Rs. 17,348 Crores, the shares of HFCL Limited were trading at Rs. 120.45 per equity share, up 0.75 percent from its previous day’s close price of Rs. 119.55.
Q1Y25 Results
Its revenue from operations grew by 16.38 percent YoY from Rs. 995.19 Crores in Q1FY24 to Rs. 1158.24 Crores in Q1FY25 and it declined by 12.6 percent QoQ from Rs. 1326.06 Crores in Q4FY24 to Rs. 1158.24 Crores in Q1FY25.
Its Net Profit grew by 46 percent YoY from Rs. 75.56 Crores in Q1FY24 to Rs. 110.65 Crores in Q1FY25 and it grew by 1.17 percent QoQ from Rs. 109.36 Crores in Q4FY24 to Rs. 110.65 Crores in Q1FY25.
MD Message
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 the 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 centers, 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, a shift from government to private customers and a growing share of international business will result in improved profitability.”
About the Company
HFCL Limited is one of the leading telecom infrastructure technology companies, it is engaged in offering end-to-end solutions for establishing the network required for telecommunications, Defense communication, and railway communication in India.
HFCL Limited is the leading supplier of Optical fiber cables in India, with 5 manufacturing facilities, 3 R&D Centers, and a presence across 45+ countries. It generates 96 percent of its revenue from Telecom and Cable, 2 percent from Defence, and 2 percent from railways.
HFCL has developed capabilities to provide premium-quality Optical Fiber and Optical Fiber Cables, state-of-the-art telecom products including 5G Radio Access Network (RAN) products, 5G Transport Products, Wi-Fi Systems (Wi-Fi 6, Wi-Fi 7), Unlicensed Band Radios, Switches, Routers and Defence electronics products.
Order book and Key Customers
As of June 2024, it has a total order book worth Rs. 6,776 Crores, category wise it consists of Rs. 3092 Crores (45.63 percent) for Network services, operation, and maintenance Rs. 2,011 Crores (29.67 percent), and Products Rs. 1673 Crores (24.69 percent).
Some of its key customers include Airtel, Larsen & Toubro, Reliance Jio, Vodafone Idea ITI, Tata, Bharat Electronics, Nokia, EIL, Railtel and many more.
Written by: Bharath K.S
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