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Revenue
₹1,032.31 Cr
verified against source
Revenue YoY
-4.85%
reported change
EBITDA
₹163.45 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's Q3 FY24 revenue declined 4.9% YoY to INR 1,032 crore, with EBITDA margin contracting 197 bps to 15.83% due to a sharp drop in optical fiber cable (OFC) sales amid global inventory destocking. PAT fell 18.9% to INR 82 crore. Management attributed the weakness to a temporary global OFC demand slowdown, expecting recovery from Q1 FY25. Positively, the company secured INR 1,700+ crore in product orders, including a landmark INR 623 crore 5G equipment order from a domestic telco, reinforcing its shift to a product-led model. Order book stands at INR 7,678 crore. Guidance points to improving OFC demand from Q2 FY25, driven by BharatNet and US BEAD subsidies, and a target product-to-project mix of 70:30 by FY25. Key risk: sustained OFC price erosion or delayed demand recovery could pressure margins further.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects global OFC demand to improve from Q1 FY25, with significant uptick from Q2, driven by US BEAD subsidies and BharatNet.
- Aims to achieve at least 70% revenue from products and 30% from EPC projects in the next financial year.
- Indigenously developed equipment revenue expected to be significantly more than INR 1,000 crore in FY25, driven by 5G orders and BharatNet routers.
- PLI scheme benefits for telecom equipment will begin from the coming financial year 2024-25.
Risks flagged
- Global OFC demand may take longer to recover than expected, impacting revenue and margins.
- Realization per fiber km has declined ~15-20% YoY; further price cuts could compress margins.
- Defense contracts (radars, fuses) face prolonged trial cycles; no orders included in FY25 projections.
- Current draft tender has onerous payment conditions; if not improved, may deter participation or strain cash flows.
Key quotes
- We are the first Indian company to receive such a large order for 5G equipment, for indigenously designed product.
- This quarter was a pretty aberration quarter because of a lower demand of fiber optic cable, but which is catching very quickly.
- Our target is to become at least 70/30, 70% product, 30% EPC, or if possible, even reduce that also.
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