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Revenue
₹995.19 Cr
verified against source
Revenue YoY
-5.31%
reported change
EBITDA
₹159.62 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
HFCL reported Q1 FY24 revenue of INR 995.19 Cr (down 5.3% YoY) due to intentional reduction in low-margin turnkey projects. However, EBITDA surged 23% YoY to INR 159.62 Cr and PAT rose 42% to INR 75.56 Cr, driven by a favorable product mix (67% product revenue vs 59% last year) and EBITDA margin expansion of 369 bps to 16.04%. International revenue grew 156% YoY to INR 176 Cr, and the order book stands at INR 6,585 Cr. Management expects margins to sustain or improve with new 5G products and capacity expansion. Key risk: delays in the Army NFS project billing (~INR 150 Cr) due to third-party vendor issues.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects product revenue to reach INR 800-1,000 Cr in FY25, driven by new 5G products and capacity expansion.
- Revenue from 5G-related products (including UBR and Wi-Fi used in 5G networks) expected at INR 350-400 Cr in FY24.
- Management expects EBITDA margins to remain around 16% with potential slight improvement as product mix improves.
- Expansion of optical fiber capacity from 10M to 33M fiber km is expected to generate additional profitability of INR 150 Cr annually at current prices.
Risks flagged
- ~INR 150 Cr revenue could not be booked due to integration delays by a third-party vendor, impacting project margins.
- Capital employed in turnkey projects is ~INR 2,900 Cr, with significant receivables and retention money, posing cash flow risk.
- Smaller players quoting low prices make it difficult for larger players to win profitable EPC contracts, potentially limiting project revenue.
- Management stated no defense product revenue expected in FY24; tenders for BMP upgrade, night vision, and fuses are still pending.
Key quotes
- Our strategy of increasing our revenue from products have really well paid off, and that is very evident from the increase in the margins.
- We are only taking those projects where cash flow is good. If the cash flow is not good, we will not take any such project, even if it has got higher margins.
- Our aim is to among the top five Wi-Fi access points and unlicensed band radio players in the world over the next few years.
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