HFCL’s Q2 FY-25’s Financial Results: Revenue Remains Flat, PAT Grows 5%

December 5, 2024375 Views Cables, Financials, HFCL, Optical Fibre

HFCL Limited [NSE: HFCL, BOM: 500183], a major manufacturer of telecom equipment, optical fiber and optical fiber cables, has announced its financial results for Q2 of FY-25.

HFCL’s Q2 FY-25 Standalone Financial Results

HFCL reported a standalone revenue of Rs. 1,011.57 crore from operations and a corresponding Profit After Tax (PAT) of Rs. 74.88 crore during Q2 of FY-25.

HFCL’s Consolidated Financial Performance

YoY Comparison of HFCL’s Financial Numbers: Q2 FY-25 vs. Q2 FY-24

HFCL Revenue YoY Comparison: Q2 FY24 vs. Q2 FY25 vs. Q1 FY25

HFCL’s top line was slightly down by 1.61% YoY to Rs. 1,093.61 crore during Q2 of FY-25 from Rs. 1,111.49 crore during Q2 of FY-24. Despite the decrease in revenue, the company’s PAT increased by 4.50% YoY to Rs. 73.33 crore in Q2 of FY-25 from Rs. 70.17 crore during Q2 of FY-24.

HFCL Revenue YoY PAT: Q2 FY24 vs. Q2 FY25 vs. Q1 FY25

The company’s Earning Per Share (EPS) also slipped to Rs. 0.51 during Q2 of FY-25 from Rs. 0.50 in Q2 of FY-24.

QoQ Analysis of HFCL’s Financial Performance: Q2 FY-25 vs. Q1 FY-25

On Quarter-over-Quarter (QoQ) basis, the company’s revenue decreased by 5.58%, from Rs. 1,158.24 crore earned during Q1 of FY-25. HFCL’s Q2 FY-25 PAT tumbled QoQ by 33.73% from Rs. 110.65 crore, which was reported for Q1 of FY-25.

Segment-Wise Revenue Comparison of HFCL

YoY Comparison of HFCL Segment-Wise Revenue: Q2 FY24 vs Q2 FY25

Telecom Products: The company’s Telecom Products include Point to Point Unlicensed Band Backhaul Radio (UBR), Ethernet L2 Switches, IP/ MPLS Routers, Micro Cable, Armoured and Unarmoured Cable, and Ground Surveillance Radar.

This segment of the company brought in a revenue of Rs. 508.05 crore during Q2 of FY-25, up from Rs. 473.81 crore reported for Q2 of FY-24. This reflects an YoY increase of 7.23% in the company’s quarterly segmental revenue.

Turnkey Contracts and Services: HFCL’s quarterly revenue from Turnkey Contracts and Services segment slumped by 8.17% YoY to Rs. 585.55 crore during Q2 of FY-25 against Rs. 637.68 crore during Q2 of FY-24.

HFCL generated 53.54% of its gross revenue* from its Turnkey Contracts and Services business.

*Gross revenue refers to the sum of segmental revenues before the deduction of inter-segmental revenue.

HFCL’s order book stood at Rs. 6,151 crore as on 30th September 2024.

HFCL Delivers Major Broadband Network Project for BSNL- Mr. Mahendra Nahata, HFCL’s MD

Mr. Mahendra Nahata, Managing Director, HFCL said, “Quarter 2 was marked by few significant milestones – HFCL delivered one of the world’s largest advanced broadband network gateway projects for BSNL”. He mentioned that HFCL has also formed a strategic partnership with United States’ General Atomics Aeronautical Systems Incorporated (GA-ASI) to develop critical sub-systems for one of the world’s most advanced unmanned aerial vehicles (UAVs).

Commenting further on the company’s financial performance, Mr. Nahata, said “During the quarter under review we delivered steady performance despite the ongoing softness in demand for Optic Fiber Cables worldwide”. He mentioned that the company is also receiving global inquiries for optic fiber cables, which suggest early signs of recovery in the upcoming quarters.

About HFCL Ltd.: HFCL was founded in 1987, and has its headquarters in Delhi. It caters primarily to the communication sector through optical fibre cables and transmission & access equipment manufacturing. HFCL has optical fibre cables manufacturing facilities in Goa and Hyderabad. HTL Limited, the company’s subsidiary, also has an optical fibre cables manufacturing plant in Chennai. The company has a Cable Reinforcement Solutions Plant in Hosur, Tamil Nadu.