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HFCL Announces Q3 FY23 Financials: Revenue Dips, But PAT Soars 25.30% YoY

Himachal Futuristic Communication HFCL logo

Himachal Futuristic Communications Limited (HFCL) [NSE: HFCL, BOM: 500183], an Indian manufacturer of Optical Fibre Cables (OFCs), has announced its financials for the quarter ended 31st December 2022.

HFCL’s Standalone Financial Numbers for Q3 of FY-23

HFCL reported a standalone revenue of Rs. 1,002.01 crore from operations during the third quarter of the 2022-23 financial year.

Correspondingly, Rs. 79.90 crore was the company’s Q3 Profit After Tax (PAT) in the current fiscal.

Consolidated Financial Performance of HFCL for Q3 FY-23

YoY Comparison of HFCL’s Financial Numbers: Q3 FY-23 vs. Q3 FY-22

Comparison of HFCL’s Financials: Q3 FY-22 vs. Q3 FY-23 vs. Q2 FY-23

For the third quarter of FY-23, the company clocked Rs. 1,085.84 crore as its revenue from operations. This reflects a 10.65% Year-over-Year (YoY) slump from the Rs. 1,215.21 crore revenue from operations reported for Q3 of FY-22.

PAT of the company followed an upward trend, growing by 25.30% YoY to Rs. 101.62 crore in Q3 of FY-23 from Rs. 81.10 crore earned during the corresponding quarter of FY-22.

HFCL’s QoQ Financial Performance: Q3 FY-23 vs. Q2 FY-23

HFCL’s revenue from operations registered a 7.47% dip on a Quarter-over-Quarter (QoQ) basis from Rs. 1,173.47 crore clocked during Q2 of the ongoing financial year.

PAT of the company, however, showed a healthy QoQ growth of 20.53% from Rs. 84.31 crore reported for the quarter ended 30th September 2022.

HFCL’s Q3 revenue has been higher than its Q2 revenue in the recent past. The last instance of the company’s Q3 revenue is lower than its Q2 revenue was in FY-20.

Company’s Insights on its Financial Performance

In an investor presentation, HFCL stated that the company’s overall margins have increased owing to its decision to focus on product revenue. HFCL has expanded its product range and has increased its presence in various geographies. This is evident from the increased share of exports in the total revenue earned by the company. In the first nine months of the current financial year, exports have contributed 18.31% to HFCL’s revenue, while for the previous financial year, this number stood at 7.62%.

As for the customer mix, HFCL stated that for the current financial year so far private sector orders have contributed 82% of the company’s earned revenue, which is a significant jump from the past few years. In FY-22, private sector orders brought in 68% of the company’s revenue.

HFCL further stated that as of now it is operating with a low debt-to-equity ratio of 0.25.

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.