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HFCL Q3 FY-24 Financial Results: Revenue Down 5%, PAT Falls 19% YoY

Himachal Futuristic Communication HFCL logo

Himachal Futuristic Communications Ltd. (HFCL) [NSE: HFCL, BOM: 500183], a Delhi-headquartered manufacturer of Optical Fibre Cables, has announced its financials for Q3 of FY-24.

HFCL’s Standalone Q3 FY-24 Financial Results

HFCL reported a standalone revenue of Rs. 954.47 crore from operations during Q3 of FY-24. Further, the company’s Profit After Tax (PAT) stood at Rs. 77.92 crore in Q3 of FY-24.

The company reported its Earnings Per Share (EPS) as Rs. 0.54 during Q3 of FY-24.

HFCL’s Consolidated Q3 FY-24 Financials

HFCL Revenue Comparison: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

YoY Comparison of HFCL Financial Figures: Q3 FY-24 vs. Q3 FY-23

The company earned a revenue of Rs. 1,032.31 crore during Q3 of FY-24, reflecting a decrease of 4.93% from Rs. 1,085.84 crore in Q3 of FY-23.

HFCL PAT Comparison: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

The company’s PAT also showed a YoY decrease of 18.88% to Rs. 82.43 crore during Q3 of FY-24 from Rs. 101.62 crore recorded for Q3 of FY-23.

Himachal Futuristic’s EPS stood at Rs. 0.58 during Q3 of FY-24 against Rs. 0.69 during Q3 of FY-23.

QoQ Comparison of HFCL Financial Performance: Q3 FY-24 vs Q2 FY-24

HFCL’s Q3 FY-24 revenue from operations was 7.12% lower than its Q2 FY-24 revenue which stood at Rs. 1,111.49 crore. PAT of the company also increased by 17.47% from Rs. 70.17 crore recorded for Q2 of FY-24.

Segment-Wise Revenue Comparison of HFCL: Q3 FY-24 vs. Q3 FY-23

HFCL Segment-wise Revenue: Q3 FY23 vs. Q3 FY24

Turnkey Contracts and Services: This segment contributed the largest share to the company’s gross revenue*. HFCL’s Turnkey Contracts and Services business segment earned a revenue of Rs. 668.48 crore during Q3 of FY-24 against Rs. 391.97 crore reported for Q3 of FY-23. Therefore, revenue from this segment jumped by 70.54% on a YoY basis.

Telecom Products: HFCL’s telecom products business vertical brought in Rs. 363.83 crore revenue during Q3 of FY-24 which represents a significant decrease of 47.47% from Rs. 692.58 crore revenue from this segment during Q3 of FY-23.

*Gross revenue is the sum of segmental revenues without the deduction of inter-segmental revenue.

HFCL to Expand Capacity in R&D and Manufacturing Sector, Order Book Grows 45% YoY

During the company’s earnings call for its Q3 FY-24 financials , Mr. Mahendra Nahata, Promoter and MD of HFCL, stated that the company will be investing in Research and Development (R&D). He did not disclose any information about the scale of R&D capex, “R&D is happening, which would be a continuous process in the company”, he added.

HFCL mentioned that the company will set-up a facility for manufacturing of telecom and networking products with an investment of Rs. 80 crore to Rs. 100 crore.

Speaking about the company’s expansion targets, Mr. Nahata said, “…the Company is also in process of expanding its optical fiber cable production capacity from 25mn fkm to 35mn fkm. This expansion will also lead to significant increase in revenue and profitability. The capacity will be added in a phased manner, with the completion targeted by FY 24-25”.

HFCL’s order book as on 31st December 2023 stands at Rs. 7,678 crore which is 45.42% higher then the company’s order book for Q3 FY-23, which stood at Rs. 5,280 crore.

About HFCL Limited: 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.