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Revenue
₹1,094 Cr
verified against source
Revenue YoY
-1.53%
reported change
EBITDA
₹172 Cr
latest reported figure
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record provenance
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What the record says.
HFCL's Q2 FY25 revenue declined 1.5% YoY to INR 1,094 crore, impacted by a global optical fiber cable (OFC) downturn. EBITDA grew 14.7% to INR 172 crore with margin expansion of 224 bps to 15.71%, driven by a favorable product mix shift toward telecom equipment. PAT rose 4.3% to INR 73 crore. The order book stands at INR 6,151 crore, with ~INR 4,000 crore executable over 12-18 months. Management expects OFC demand recovery from Q4 FY25, supported by BharatNet Phase 3 awards and improving international inquiries. Defense revenue is anticipated from FY26. Key risks include delayed BharatNet awards and sustained OFC pricing pressure.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated its aspiration to reach INR 10,000 crore revenue in three years, driven by telecom, defense, and export growth.
- Management expects OFC demand to pick up from Q4 FY25, with capacity utilization improving from 45% to 80% or more.
- Management expects BharatNet contracts to be awarded in Q4 FY25, with HFCL targeting INR 5,000-8,000 crore opportunity.
- Electronic fuzes and other defense products under trial are expected to generate revenue from next financial year.
Risks flagged
- BharatNet Phase 3 contract awards have been delayed beyond initial expectations, impacting order inflow visibility.
- Global OFC market remains depressed with capacity utilization at 45%; recovery timing is uncertain.
- Top 3-4 customers account for over 60% of revenue, exposing the company to concentration risk.
- Finance costs increased to INR 44.88 crore in Q2 from INR 42.31 crore in Q1, partly due to higher borrowings for capex.
Key quotes
- We are targeting a significant increase in export revenue from our optical fiber segment, aiming for up to 70% of revenue to come from international markets in the next three years.
- The European Commission with its verdict given on 11th October 2024, and it exempted us from definitive anti-dumping duties on optical fiber cable, by which we have gained a competitive edge in the European market.
- We have been selected to develop and supply critical subsystems for General Atomics Aeronautical Systems Incorporated of the USA for their advanced unmanned aircraft systems.
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