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HFCL FY-24 Financial Results: Revenue Down 6%, PAT Grows 6% YoY

Himachal Futuristic Communication HFCL logo

Himachal Futuristic Communications Ltd. (HFCL) [NSE: HFCL, BOM: 500183], an Indian manufacturer of Optical Fibre Cables (OFCs), has announced its financial results for Q4 of FY-24 and for the entire FY-24.

HFCL’s Standalone Financial Results for Q4 FY-24 and FY-24

HFCL clocked a standalone revenue of Rs. 1,238.04 crore from its operations and a Profit After Tax (PAT) of Rs. 115.44 crore during Q4 of FY-24.

During entire FY-24, the company reported Rs. 4,074.59 crore as its top line and a corresponding PAT of Rs. 309.66 crore.

Further, Earnings Per Share (EPS) of the company stood at Rs. 0.81 during Q4 FY-24 and Rs. 2.19 for entire financial year 2023-24.

HFCL Consolidated Financial Figures for Q4 FY-24 and FY-24

YoY Comparison of HFCL Financials: Q4 FY-24 vs. Q4 FY-23 & FY-24 vs. FY-23

HFCL Revenue YoY Comparison: Q4 FY23 vs. Q4 FY24 & FY23 vs. FY24

HFCL’s Q4 FY24 revenue showed a YoY decrease of 7.46% to Rs. 1,326.06 crore from Rs. 1,432.98 crore during Q4 FY23. Further, the company recorded a PAT of Rs. 109.36 crore during Q4 of FY-24 which is 39% higher Year-over-Year (YoY) than Rs. 78.68 crore clocked during Q4 of FY-23.

HFCL PAT YoY Comparison: Q4 FY23 vs. Q4 FY24 & FY23 vs. FY24

Considering the full fiscal year, in FY-24, HFCL generated Rs. 4,465.05 crore revenue, which is 5.87% lower than HFCL’s Rs. 4,743.31 crore revenue reported for FY-23. The company’s PAT, on the other hand, grew by 6.24% to Rs. 337.52 crore in FY-24 from Rs. 317.71 crore during FY-23.

Comparing the consolidated EPS of the company, HFCL’s EPS jumped to Rs. 0.76 during Q4 of FY-24 from Rs. 0.52 during Q4 of FY-23. Further, the company’s EPS for entire FY-24 stood at Rs. 2.33 as compared to Rs. 2.18 during FY-23.

HFCL Revenue Comparison: Q3 FY24 vs. Q4 FY24
HFCL PAT Comparison: Q3 FY24 vs. Q4 FY24

QoQ Comparison of HFCL’s Financial Figures: Q4 FY-24 vs. Q3 FY-24

On a Quarter-over-Quarter (QoQ) basis, the company’s revenue jumped by 28.46% from Rs. 1,032.31 crore during Q3 of FY-24. Further, HFCL’s quarterly PAT grew by 32.67% QoQ from Rs. 82.43 crore, which was reported for Q3 of FY-24.

Himachal Futuristic Communications’ Segment-Wise Revenue Comparison

YoY Comparison of HFCL Segment-Wise Revenue: Q4 FY23 vs Q4 FY24 & FY23 vs FY24

Turnkey Contracts and Services: This segment of the company brought in a major portion of HFCL’s FY-24 revenue. Considering the entire FY-24, HFCL generated 58.29% of its gross revenue* from its Turnkey Contracts and Services business.

*Gross revenue is the sum of segmental revenue of a company without the deduction of any inter-segmental revenue.

Turnkey Contracts and Services earned the company a revenue of Rs. 963.65 crore during Q4 of FY-24 as compared to Rs. 778.29 crore in Q4 of FY-23. Therefore, there has been a healthy increase of 23.82% in revenue from HFCL’s Turnkey and Contracts and Services segment. During entire financial year 2023-24, the company’s revenue from this segment grew by 23.72% to Rs. 2,602.57 crore from Rs. 2,103.60 crore during FY-23.

Telecom Products: During the closing quarter of FY-24, HFCL generated Rs. 362.41 crore as revenue from its Telecom Products segment. This shows a decrease of 44.61% from its Rs. 654.25 crore revenue clocked from this segment during Q4 of FY-23.

For entire FY-24, HFCL’s segmental revenue from its Telecom Products business stood at Rs. 1,862.48 crore, which is down by 29.40% from Rs. 2,637.97 crore revenue earned from this segment during FY-23.

Insights of HFCL for its FY-24 Performance and Future Growth

In its investor presentation for FY-24 financial results, HFCL stated that business in the telecom sector contributed 92% of the company’s revenue during FY-24 and defence sector accounted for 6% of HFCL’s revenue. Further, work in the railways sector contributed the remaining 2% of HFCL’s revenue during financial year 2023-24.

During the entire FY-24, exports contributed 11.21% of HFCL’s total revenue. HFCL anticipates that by FY-27 that the share of its export-led revenue will be 40% of its total revenue. Additionaly, the company targets a top-line of Rs. 2,000 crore during FY-25 from its telecom product portfolio. The company is focusing on increasing its product-led revenue to enable “…lower working capital requirements, quicker realization and margin expansion”.

As a part of its manufacturing expansion the company is in the process of setting up a plant in NCR with an investment of about Rs. 100 crore to manufacture telecom and networking products.

Moreover, HFCL is developing a plant in Poland for manufacturing of Optical Fibre cables, which is expected to be complete by 2025.

HFCL’s order book reached Rs. 7,685 crore during FY-24 against Rs. 7,010 crore during FY-23.

About HFCL: 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.