HFCL – Q3FY23 Results

New Delhi, 25 January 2023: HFCL Limited (‘HFCL’), India’s leading technology enterprise with operations across manufacturing of high-end telecom equipment, optical fiber and optical fiber cables and offering communication network solutions for Telcos, Railways and Defence sectors announced its un- audited financial results for the third quarter and nine months ended 31st December, 2022.

Consolidated Financial Highlights – Q3’FY23

Particulars	Q3FY23₹ in crores	Q2FY23₹ in crores	Change Q-o-Q %	Q3FY22₹ in crores	Change Y-o-Y%
Revenue	1086	1173	-7.47%	1215	-10.65%
EBIDTA	193	175	10.73%	174	10.75%
EBIDTAMargin (%)	17.80%	14.88%	292 Bps	14.36%	344 Bps
PAT	102	84	20.53%	81	25.30%
PAT Margin (%)	9.36%	7.18%	218 Bps	6.67%	269 Bps

On standalone basis, for the third quarter ended 31^st December, 2022, the Company reported a revenue of ₹ 1,002 crores, EBIDTA of ₹ 147 crores, PBT of ₹ 107 crores and PAT of ₹ 80 crores as against revenue of ₹ 1,107 crores, EBIDTA of ₹ 139 crores, PBT of ₹ 95 crores and PAT of ₹ 70 crores for third quarter ended 31^st December, 2021.

For the nine months ended 31^st December, 2022, the Company reported consolidated revenue of ₹ 3,310 crores, EBIDTA of ₹ 498 crores, PBT of ₹ 322 crores and PAT of ₹ 239 crores as against revenue of ₹ 3,544

crores, EBIDTA of ₹ 539 crores, PBT of ₹ 349 crores and PAT of ₹ 258 crores for nine months ended 31^st December, 2021.

For the nine months ended 31^st December, 2022, the Company reported standalone revenue of ₹ 3,073 crores, EBIDTA of ₹ 402 crores , PBT of ₹ 272 crores and PAT of ₹ 204 crores as against revenue of ₹ 3,220 crores, EBIDTA of ₹ 443 crores , PBT of ₹ 299 crores and PAT of ₹ 221 crores for nine months ended 31^st December, 2021.

Commenting on the Company’s performance, Mr. Mahendra Nahata, Managing Director, HFCL said, “Over the last few quarters, despite the supply chain disruptions witnessed across the globe, we have continued to demonstrate strong business performance with our strategy to tap into new geographies, new customers with new products and shift in revenue mix from Projects to more of Products which has resulted into sustainable revenue and margin expansion. Besides, HFCL’s industry leadership in Optical Fiber Cable space in India, it has further intensified its efforts to strengthen the Global footprints leading to significant order wins from Europe. Our 9MFY’23 export revenue grew by 127.53% on Y-o-Y basis and we are optimistic to continue with the same trend in coming quarters by accessing more geographies. Our order book stood more than ₹7000 crores as on 31^st December, 2022 compared to ₹5280 crores in the previous quarter.”

Mr. Nahata further added, “HFCL has been granted approval to avail incentives up to ₹652.79 crores from FY 22-23 to FY 26-27 as part of Government’s production-linked incentive (PLI) scheme, wherein, we committed an investment of ₹425 crores over a period of four years for the development and manufacturing of telecom products including 5G Radio equipment, Routers, Switches, WiFi Products and Backhaul Radios. FY 2024 will see us continue on our strategic transformation to emerge as a high-tech global enterprise and integrated next-gen network solution provider.”