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HFCL’s Q1 FY23 Financials: Revenue Shrinks 12.91%, PAT down 41.45% YoY

Himachal Futuristic Communication HFCL logo

Himachal Futuristic Communications Limited (HFCL) [NSE: HFCL, BOM: 500183], an Indian Optical Fibre Cable (OFC) manufacturer, has announced its financial results for the first quarter of FY-23.

HFCL’s Standalone Financials for Q1 of FY-23

HFCL’s Standalone revenue from operations stood at Rs. 951.21 crore, while the company reported Rs. 48.05 crore as standalone Profit After Tax (PAT) for the quarter ended 30th June 2022.

HFCL’s Consolidated Financial Results

YoY Comparison of HFCL’s Financial Performance: Q1 FY-23 vs. Q1 FY-22

HFCL Financials Q1 FY23
Comparison of HFCL’s Financials: Q1 FY-22 vs. Q1 FY-23 vs. Q4 FY-22

HFCL reported Rs. 1,051.02 crore as consolidated revenue from operations for the quarter ended 30th June 2022. This is YoY 12.91% lower than the Rs. 1,206.87 crore revenue which the company had clocked during the same period in 2021-22 financial year.

Consolidated PAT of the company also exhibited a downward trend, falling by 41.45% YoY, to Rs. 53.10 crore in Q1 of FY-23. HFCL’s PAT was Rs. 90.69 crore during the corresponding quarter in the previous fiscal.

QoQ Comparison of HFCL’s Financials: Q1 FY-23 vs. Q4 FY-22

On a Quarter-over-Quarter (QoQ) basis, the company’s revenue from operations was down by 11.15% from Rs. 1,182.98 crore clocked in the last quarter of FY-22.

HFCL also reported a 22.06% decline in PAT from Rs. 68.13 crore recorded for Q4 of 2021-22.

Summary of HFCL’s Financial Performance

As per an investor presentation by the company, HFCL has received multiple orders for the supply of OFC and providing Fibre To The Home (FTTH) connectivity from various companies in the telecommunications sector.

Mr. Mahendra Nahata, Promoter & Managing Director, HFCL, said that the financial performance in Q1 of the current fiscal has been below the company’s expectations.

Revenue this quarter got impacted due to supply chain disruptions including shortage of semiconductors and intermittent gap in supply of optical fibre”, explained Mr. Nahata. He further elaborated that the drop in HFCL’s margins was due to the fulfilment of existing orders at pre-committed prices despite the increase in raw material prices.

Mr. Nahata told that the company expects revenue and margins to get back on track as the supply chain and input costs ease.

About HFCL: Delhi-headquartered HFCL was founded in 1987, and it caters mainly to the communication sector through OFC and transmission & access equipment manufacturing. The company has OFC manufacturing facilities in Goa and Hyderabad. HTL Limited, the company’s subsidiary, also has an OFC manufacturing plant in Chennai.