HFCL Announces Q2 FY-23 Financials: PAT Rockets 58.81% QoQ
Himachal Futuristic Communications Limited (HFCL) [NSE: HFCL, BOM: 500183], an Indian manufacturer of Optical Fibre Cables (OFC), has announced its financial results for Q2 of FY-23.
HFCL’s Standalone Financial Results
HFCL reported Rs. 1,119.35 crore as its standalone revenue from operations for the quarter ended 30th September 2022.
Corresponding to the same period, the company clocked a Profit After Tax (PAT) of Rs. 75.84 crore.
HFCL’s Consolidated Q2 FY23 Financial Performance Reflects Stability
YoY Comparison of HFCL’s Q2 Financials: Q2 FY-23 vs. Q2 FY-22
On a Year-over-Year (YoY) basis, the company’s revenue from operations increased marginally by 4.58% to Rs. 1,173.47 crore in Q2 of FY-23 from Rs. 1,122.05 crore reported for the corresponding quarter in the previous fiscal.
PAT clocked by the company went down by a meagre 1.9% YoY, to Rs. 84.31 crore for Q2 of 2022-23 from the Rs. 85.94 crore profit reported for Q2 of of 2021-22.
Overall, the YoY performance of HFCL has been largely steady, and the aforementioned numbers reflect HFCL’s robust consistency.
QoQ Comparison of HFCL’s Financial Performance: Q2 FY-23 vs. Q1 FY-23
Quarter-over-Quarter (QoQ) comparison of HFCL’s consolidated financials reveals that the company’s revenue from operations went up by 11.65% from Rs. 1,051.01 crore during Q1 of the current fiscal.
HFCL’s PAT grew substantially, shooting up by 58.81% from Rs. 53.09 crore which was reported for the quarter ended 30th June 2022.
Generally for Indian Cable and Wire companies, revenue earned during the first quarter of any financial year is the lowest. Though it is natural for HFCL to report higher numbers for Q2 as compared to Q1 of FY-23, the company’s QoQ growth has been healthy.
HFCL’s Insights on its Q2 FY-23 Financial Results
Speaking about the company’s financial performance, Mr. Mahendra Nahata, Managing Director, HFCL stated that supply chain disruptions and input costs have eased, which has resulted in healthy Q2 figures. He said that subsequent to these changes, HFCL’s margins have improved.
Mr. Nahata further elaborated that the company’s exports have contributed 16.38% to HFCL’s Q2 FY23 revenue. This is higher than the 9.08% share of exports in HFCL’s Q2 FY22 revenue. “We continue to see strong response in key global markets like Europe, Africa and Middle East, thereby making us optimistic about doubling our exports to ₹ 750 crores by end of FY23. We have also committed an investment of ₹425 crores on R&D and creation of facilities to manufacture telecom equipment under the Government’s PLI/DLI scheme” said Mr. Nahata.
About HFCL: HFCL was founded in 1987, and has its headquarters in Delhi. It caters primarily to the communication sector through OFC and transmission & access equipment manufacturing. HFCL has OFC manufacturing facilities in Goa and Hyderabad. HTL Limited, the company’s subsidiary, also has an OFC manufacturing plant in Chennai. The company has a Cable Reinforcement Solutions Plant in Hosur, Tamil Nadu.