Latest news with #HFCL
Yahoo
26-05-2025
- Business
- Yahoo
HFCL Ltd (BOM:500183) Q4 2025 Earnings Call Highlights: Strategic Investments and Export Focus ...
Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. HFCL Ltd (BOM:500183) is well-positioned to capitalize on the growing demand for high-capacity optical fiber cables, driven by the expansion of hyperscale data centers and 5G rollouts. The company has made significant investments in defense technologies, including ground surveillance radars and night vision devices, which are expected to generate substantial revenue. HFCL Ltd (BOM:500183) has a strong order book of INR 9,967 crore as of March 31, 2025, indicating robust future revenue potential. The company has successfully developed indigenous MPLS routers and 5G fixed wireless access equipment, securing orders worth INR 800 crore and INR 174 crore, respectively. HFCL Ltd (BOM:500183) is focusing on export markets, particularly for fiber optic cables and telecom equipment, which is expected to drive significant revenue growth. The company experienced a downturn in optical fiber cable demand, leading to lower capacity utilization and impacting financial performance. HFCL Ltd (BOM:500183) faced margin pressure from newly launched telecom products and slower customer uptake in its EPC business. The company's profit after tax for FY25 was significantly lower at INR 173 crore compared to INR 380 crore in FY24. There were delays in defense product trials due to supply chain issues, impacting the timeline for revenue generation from these products. The company is cautious about taking new EPC orders due to concerns about payment timelines and milestone-based payments. Warning! GuruFocus has detected 2 Warning Sign with BOM:500183. Q: What strategies does HFCL have in place to regain global market share, especially in Europe and Southeast Asia, and how do reciprocal tariffs impact exports? A: Export is a cornerstone of HFCL's strategy to increase revenue, focusing on markets outside India, which constitute 95% of the global market. HFCL is concentrating on fiber optic cable exports, with significant orders from North America and Europe. The reciprocal tariffs currently at 10% have not significantly impacted exports, as costs are often shared with customers. HFCL has recommended zero tariffs for optical fiber cable imports to the government. (Respondent: Unidentified_3) Q: How does the demand from data centers differ from telco CapEx, and what is HFCL's focus in this area? A: Data centers, particularly hyperscale ones, are driving significant growth in fiber optic cable demand. HFCL is focusing on exporting not only fiber optic cables but also passive connectivity solutions required within data centers. The demand for high-capacity cables is expected to continue for at least the next five years, driven by the rise of artificial intelligence and increased data usage. (Respondent: Unidentified_3) Q: What is the outlook for fixed wireless access (FWA) equipment in India and international markets? A: HFCL is manufacturing FWA equipment for both India and international markets. In India, there is a continuous demand for FWA as it provides broadband connectivity over wireless. HFCL has supplied significant quantities and received new orders. For international markets, HFCL is developing new designs to cater to different spectrum requirements and indoor equipment preferences. (Respondent: Unidentified_3) Q: What is HFCL's outlook on the demand for defense products in India, and what role is the company playing in this sector? A: HFCL sees a high demand for defense equipment, driven by the need for enhanced defense preparedness. The company is focusing on ground surveillance radars, night vision devices, electronic fuses, and communication equipment. HFCL has received commendation for its work on the NFS network for the army and expects to start revenue from surveillance radars and night vision devices in the current financial year. (Respondent: Unidentified_3) Q: How long is the transitional period expected to last, and when will HFCL see significant growth? A: The transitional period is expected to last until the end of the current quarter. HFCL anticipates significant growth starting from the next quarter, driven by full capacity utilization, new orders, and the implementation of projects like Bharatnet. The company expects a strong rebound in revenue from various sectors, including fiber optic cables and defense products. (Respondent: Unidentified_3) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
26-05-2025
- Business
- Time of India
HFCL expects 25-30% revenue growth in current fiscal: MD Mahendra Nahata
Domestic telecom gear HFCL expects 25-30% growth in revenue during the current fiscal on account of increase in order book and pick-up in demand, a top official of the company said. During the earnings call, HFCL 's managing director Mahendra Nahata said that the company's order book as of March 31, 2025, has increased to ₹9,967 crore from ₹7,685 crore as on March 31, 2024. "With strong order book, demand pick-up and full capacity utilization, the company expects growth of 25-30 per cent in revenue of the current financial year on an overall basis with major growth starting from the second quarter," Nahata said. He said that HFCL has become the first Indian company to develop and commercially launch 5G Fixed Wireless Access customer premises equipment -- a modem for providing wireless 5G connectivity for home broadband services. "In its very first year of launch, we have successfully despatched over 4 lakh units of this equipment, demonstrating strong market acceptance. With growing demand from telecom operators and ISPs, we expect to have continuous demand for such products. I am happy to inform you that in the last week we have received another order of ₹174 crores for this product," Nahata said. During the March 31, 2025 quarter, HFCL recorded about 39 per cent decline in revenue to ₹800.72 crore mainly on account of poor demand for optical fibre. Nahata said that after experiencing subdued demand for optical fibre cable over the past 6-7 quarters leading to lower capacity utilization, the company's optical fibre manufacturing has now begun operating at full capacity starting June 2026 quarter as against 45 per cent capacity utilisation during FY25. "Our Optical Fiber Cable manufacturing capacity utilization was also 40 per cent during last financial year. This will also start operating at full capacity by July 2025. With market conditions showing clear signs of recovery and new growth drivers such as 5G rollouts, data centre expansion, BharatNet Phase III execution , and rising export demand, our revenue from optic fibre cable during FY'26 is expected to improve significantly," Nahata said.
Time of India
25-05-2025
- Business
- Time of India
HFCL expects 25-30 pc revenue growth in current fiscal: MD Mahendra Nahata
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Domestic telecom gear HFCL expects 25-30 per cent growth in revenue during the current fiscal on account of increase in order book and pick-up in demand, a top official of the company said. During the earnings call, HFCL's managing director Mahendra Nahata said that the company's order book as of March 31, 2025, has increased to Rs 9,967 crore from Rs 7,685 crore as on March 31, 2024."With strong order book, demand pick-up and full capacity utilization, the company expects growth of 25-30 per cent in revenue of the current financial year on an overall basis with major growth starting from the second quarter," Nahata said that HFCL has become the first Indian company to develop and commercially launch 5G Fixed Wireless Access customer premises equipment -- a modem for providing wireless 5G connectivity for home broadband services."In its very first year of launch, we have successfully despatched over 4 lakh units of this equipment, demonstrating strong market acceptance. With growing demand from telecom operators and ISPs, we expect to have continuous demand for such products. I am happy to inform you that in the last week we have received another order of Rs 174 crores for this product," Nahata the March 31, 2025 quarter, HFCL recorded about 39 per cent decline in revenue to Rs 800.72 crore mainly on account of poor demand for optical said that after experiencing subdued demand for optical fibre cable over the past 6-7 quarters leading to lower capacity utilization, the company's optical fibre manufacturing has now begun operating at full capacity starting June 2026 quarter as against 45 per cent capacity utilisation during FY25."Our Optical Fiber Cable manufacturing capacity utilization was also 40 per cent during last financial year. This will also start operating at full capacity by July 2025. With market conditions showing clear signs of recovery and new growth drivers such as 5G rollouts, data centre expansion, BharatNet Phase III execution , and rising export demand, our revenue from optic fibre cable during FY'26 is expected to improve significantly," Nahata said.
Time of India
25-05-2025
- Business
- Time of India
HFCL targets 25–30% revenue growth in FY26 on strong order book and 5G product demand: MD
Domestic telecom equipment manufacturer HFCL is projecting a 25–30% growth in revenue for the current financial year, supported by a significant increase in its order book and a revival in market demand, according to a top company official. Speaking during the company's earnings call, HFCL Managing Director Mahendra Nahata said the company's order book stood at Rs 9,967 crore as of March 31, 2025, up from Rs 7,685 crore a year earlier. 'With strong order book, demand pick-up and full capacity utilization, the company expects growth of 25–30 per cent in revenue of the current financial year on an overall basis with major growth starting from the second quarter,' Nahata said. Nahata also highlighted HFCL's innovation milestone, stating that the company has become the first Indian firm to develop and commercially launch 5G Fixed Wireless Access (FWA) customer premises equipment (CPE)—a modem that provides wireless 5G broadband connectivity for homes, reported PTI. 'In its very first year of launch, we have successfully despatched over 4 lakh units of this equipment, demonstrating strong market acceptance. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng với sàn môi giới tin cậy IC Markets Đăng ký Undo With growing demand from telecom operators and ISPs, we expect to have continuous demand for such products. I am happy to inform you that in the last week we have received another order of Rs 174 crores for this product,' he added. Despite this progress, HFCL faced a setback in the March quarter, with revenue falling by nearly 39% to Rs 800.72 crore, largely due to weak demand in the optical fibre segment. Nahata noted that demand for optical fibre cables had remained subdued for the past 6–7 quarters, resulting in capacity utilisation of just 40–45% during FY25. However, the company expects a significant turnaround in the coming quarters. 'Our Optical Fiber Cable manufacturing capacity utilization was also 40 per cent during last financial year. This will also start operating at full capacity by July 2025. With market conditions showing clear signs of recovery and new growth drivers such as 5G rollouts, data centre expansion, BharatNet Phase III execution, and rising export demand, our revenue from optic fibre cable during FY'26 is expected to improve significantly,' Nahata said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Standard
23-05-2025
- Business
- Business Standard
HFCL reports dismal Q4 outcome
HFCL reported consolidated net loss of Rs 81.43 crore in Q4 FY25 as against net profit of Rs 110.6 crore posted in Q4 FY24. Revenue from operations tanked 39.61% year on year on to Rs 800.72 crore in the fourth quarter of FY25. The firm reported a pre-tax loss of Rs 104.93 crore in Q4 FY25, compared to a profit before tax of Rs 149.45 crore in Q4 FY24. Total expenses tumbled 22.85% year-on-year to Rs 918.19 crore during the quarter. Cost of materials/services consumed were Rs 785.63 crore (up 70.50% YoY), while finance costs were Rs 46.76 crore (up 74.72% YoY) during the period under review. The company reported a negative EBITDA of Rs 22.23 crore in Q4 FY25, against an EBITDA of Rs 209.29 crore in Q4 FY24. EBITDA margin stood at 2.79% in Q4 FY25, sharply lower than 15.78% in Q4 FY24. Commenting on the companys performance, Mahendra Nahata, Managing Director of HFCL, said: FY25 was a year of strategic progress amid transitional headwinds. Our financial performance was impacted by weak optical fiber cable demand, margin pressure from newly launched telecom products, and slower customer offtake in the EPC business. Despite these challenges, we focused on building a strong foundation for future growth. With an order book of Rs 9,967 crore and rising product demand, we expect overall performance to improve in FY26. The Optical Fiber and Optical Fiber Cable business is poised for significant revenue growth, backed by rising domestic and global demand. Fiber manufacturing and cable plant capacity utilization, which stood at 45% and 40% respectively in FY25, are ramping up to full utilization with the latter expected to reach full scale by July 2025. Our telecom product portfolio, including routers, 5G Fixed Wireless Access Terminals, Wi-Fi 7 access points, and high-capacity unlicensed band radios, will support revenue growth. In the Defence sector, we anticipate contributions starting Q2 FY26, with strong interest in Ground Surveillance Radars, Electronic Fuses, and a soon-to-be-commercialized Drone Detection Radar. Weve secured a Rs 44.36 crore tactical cable order from the Indian Army via subsidiary HTL Ltd and emerged as L1 bidder for a ₹55 crore Electro Optic devices contract. Our wire harness business is supporting upgrades to fighter aircraft and T-72 tanks, and DRDO has approved tech transfer for two key defence products. A dedicated defence equipment facility has been established in Hosur, Tamil Nadu. To support the rise of hyperscale data centres globally, weve also bolstered our manufacturing capabilities for data centre-centric connectivity solutions a new revenue stream. Exports are a core part of our strategy, with meaningful traction in fiber optic cables, 5G CPEs, routers, Wi-Fi products, and FRP rods. We are also receiving defence equipment enquiries from global markets. With our strong order pipeline and capacity utilization reaching full scale, we expect revenue to grow by 2530% in FY26. Looking ahead, with robust order inflow, strategic investments maturing, and growth across telecom, defence, and data connectivity, we are confident of a strong rebound in FY26. Our focus remains on innovation, global expansion, and long-term value creation. The board of directors has approved a dividend of 10% for FY25, i.e., Rs 0.10 per equity share of face value Re 1 each, subject to shareholder approval at the upcoming annual general meeting (AGM). HFCL is engaged in business of manufacturing of range of products in optical fiber cable ("OFC"), optical fiber and telecom and networking equipment. The company also provides an end-to-end portfolio of integrated next generation optical and data networking solutions for telecommunication, defence communication and railway communication. Shares of HFCL rose 0.28% to Rs 84.74 on the BSE.
