HFCL’s Q3 PAT Down 12% YoY, Telecom Products Revenue Up 60%

HFCL Limited [NSE: HFCL, BOM: 500183], a major manufacturer of telecom equipment, optical fiber and optical fiber cables, has announced its financial results for Q3 of FY-25.

HFCL’s Q3 FY-25 Standalone Financial Results

During Q3 of FY-25, HFCL reported a standalone revenue of Rs. 960.94 crore and a Profit After Tax (PAT) of Rs. 78.48 crore.

HFCL’s Q3 FY-25 Consolidated Financial Numbers

YoY Comparison of HFCL Financials: Q3 FY-25 vs. Q3 FY-24

On Year-over-Year (YoY) basis, the company’s Q3 revenue was almost flat, exhibiting a slight decrease of 1.97% to Rs. 1,011.95 crore during FY-25 from Rs. 1,032.31 crore during FY-24. HFCL’s Q3 FY-25 PAT decreased by 11.95% YoY to Rs. 72.58 crore from Rs. 82.43 crore PAT earned during Q3 of FY-24.

The company’s Earnings Per Share (EPS) stood at Rs. 0.51 during Q3 of FY-25 against Rs. 0.58 during Q3 of FY-24.

QoQ Results Analysis of HFCL Financial Performance: Q3 FY-25 vs. Q2 FY-25

On Quarter-over-Quarter (QoQ) basis, HFCL revenue slipped by 7.47% from Rs. 1,093.61 crore, which was logged for Q2 of FY-25. Following suit, the company’s profit also decreased by 1.02% from Rs. 73.33 crore reported during Q2 of FY-25.

Segment-Wise Revenue Analysis of HFCL

Telecom Products: HFCL’s Telecom Products include Point to Point Unlicensed Band Backhaul Radio (UBR), Ethernet L2 Switches, IP/ MPLS Routers, Micro Cable, Armoured and Unarmoured Cable, and Ground Surveillance Radar.

The company’s revenue from this business segment jumped to Rs. 582.42 crore during Q3 of FY-25 from Rs. 363.83 crore during Q3 of FY-24. This represents a YoY increase of 60.08% in the company’s segmental revenue.

Turnkey Contracts and Solutions: HFCL’s Turnkey Contracts and Solutions segment quarterly revenue decreased by 35.75% to Rs. 429.53 crore during Q3 of FY-25 from Rs. 668.48 crore in Q3 of FY-24.

HFCL’s Major Work Highlights During Q3 FY-25

In its investor presentation for Q3 FY-25, the company highlighted some of HFCL’s major achievements during Q3 of FY-25. HFCL secured an order worth Rs. 2,510.30 crore for executing work on the middle-mile network under the BharatNet Phase-III project. This contract was awarded by Bharat Sanchar Nigam Ltd. (BSNL).

Additionally, the company inaugurated a defense equipment manufacturing facility in Hosur, Tamil Nadu in Q3 of FY-25. This plant produces equipment for the Indian defense forces and export markets.

Commenting on these achievements, Mr. Mahendra Nahata, Managing Director of HFCL said “The recent BharatNet order wins are a testament to our expertise in strengthening India’s digital infrastructure, reinforcing our position as a trusted technology partner in the Country’s broadband revolution. Additionally, the establishment of our new defense manufacturing unit in Hosur marks a significant milestone in our journey towards self-reliance in critical defense technologies”.

The company’s order book stood at Rs. 10,410 crore as of 31st December 2024. Out of the total, HFCL received orders worth Rs. 8,527 crore from government companies and remaining Rs. 1,883 crore of orders from private companies.

HFCL to Expand its Optical Fibre Manufacturing Capacities

The company plans to expand its optical fiber manufacturing capacity to 33.90 million fiber kilometers per annum (fkm p.a.) from the current 14 million fkm p.a. This expansion will reduce reliance on external suppliers for optical fiber cable production while ensuring higher quality finished goods.

Additionally, HFCL will increase its optical fiber cable manufacturing capacity to 35 million fkm p.a from the current 25 million fkm p.a.

However, further details of this expansion are not available.

HFCL’s Stock 4% Down post Announcement of Financials

HFCL’s share price tumbled by 4.15% on the day of announcement of its Q3 FY-25 financial results as compared to the share price on previous trading day. The company’s share price was Rs. 101.72 apiece on the day of announcement of its financials and Rs. 106.12 on the previous trading day.

About HFCL Limited: Established in 1987, HFCL 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 cable 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.