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HFCL FY23 Financial Results: Revenue Remains Flat, PAT Down 2.5% YoY

Himachal Futuristic Communication HFCL logo

Himachal Futuristic Communications Limited (HFCL) [NSE: HFCL, BOM: 500183], a Delhi-headquartered manufacturer of Optical Fibre Cables (OFCs), has announced its financials for the last quarter of FY-23.

HFCL’s Standalone Financial Figures

For the quarter ended 31st March 2023, HFCL clocked a standalone revenue of Rs. 1,323.11 crore from its operations. The corresponding Profit After Tax (PAT) for Q4 of FY-23 stood at Rs. 50.81 crore. Further, Earnings Per Share (EPS) reported by the company for Q4 of FY-23 was Rs. 0.37.

For the entire fiscal, HFCL’s revenue from operations was Rs. 4,395.68 crore, and the company’s PAT was Rs. 254.60 crore. The company’s EPS for the entire 2022-23 financial year was Rs. 1.85.

HFCL’s Consolidated Financial Results FY23

YoY Comparison of HFCL’s Financials: Q4 FY-22 vs. Q4 FY-23 & FY-22 vs. FY-23

Comparison of HFCL’s Financials: Q4 FY22 vs Q4 FY23 vs Q3 FY23 & FY22 vs FY23

On a Year-over-Year (YoY) basis, HFCL’s Q4 consolidated revenue grew impressively by 21.13% to Rs. 1,432.98 crore in FY-23 from Rs. 1,182.98 crore in FY-23.

Q4 FY23 PAT also exhibited an upward trend, increasing by 15.49% YoY to Rs. 78.68 crore from Rs. 68.13 crore earned in Q4 of FY-22.

Comparing HFCL’s Q4 EPS, we see an increase of 10.64% YoY. For the last quarter of FY-23, HFCL reported a consolidated EPS of Rs. 0.52 against Rs. 0.47 for the quarter ended 31st March 2022.

Comparison of HFCL’s EPS: Q4 FY22 vs Q4 FY23 vs Q3 FY23 & FY22 vs FY23

Further, HFCL’s FY-23 revenue from operations was almost the same as revenue during FY-22, increasing meagerly by 0.34%. The company’s revenue for FY-23 was Rs. 4,743.31 crore against Rs. 4,727.11 crore clocked during FY-22.

Considering the entire year, HFCL earned a PAT of Rs. 317.71 crore in FY-23 as compared to Rs. 325.86 crore in FY-22. Therefore, there has been a slight decrease of 2.50% in the company’s profit from FY-22 to FY-23.

Analysis of EPS shows that there has been a drop of 8.40% to Rs. 2.18 for the entire 2022-23 fiscal from Rs. 2.38 for FY-22.

QoQ Comparison of HFCL’s Financial Figures: Q3 FY-23 vs. Q4 FY-23

Quarter-over-Quarter (QoQ) comparison of HFCL’s revenue reflects a healthy growth by 31.97% from Q3 to Q4 of FY-23, up from INR 1085.84 Cr during Q3 FY23. PAT of the company however exhibited a contrasting trend, dropping by 22.57% QoQ from Rs. 101.62 crore clocked during Q3 of 2022-23.

Moreover, HFCL reported an EPS of Rs. 0.69 for the third quarter of FY-23. Therefore, from Q3 to Q4 of FY-23, HFCL’s EPS dropped by 24.64%.

HFCL’s Insights on its Financial Performance

From the company’s Earnings Presentation dated 8th May 2023, it is evident that HFCL has been strategically increasing its exports over the past few years. In FY-23, exports accounted for 17.23% of the total revenue of the company, as compared to 7.62% in FY-22 and 4.54% in FY-21.

Further, HFCL stated that for the year ended 31st March 2023, 83% of its revenue came from orders from the private sector, while the remaining 17% came from government orders. Interestingly, in FY-22 private sector orders brought in 68% of HFCL’s revenue, therefore it can be concluded that the company’s business from its private clients has increased from FY-22 to FY-23.

For FY-23, HFCL’s Debt to Equity ratio stood at 0.24 as compared to 0.26 for the 2021-22 financial year.

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.