HFCL (HFCL) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 revenue reached INR 1,158.24 crores, up 16.38% year-over-year, with PAT of INR 110.65 crores, up 46.44% year-over-year.

• Growth was driven by strategic R&D, new telecom and networking products, and robust demand for 5G Fixed Wireless Access equipment.

• Exemption from EU anti-dumping duties on optical fiber cables enhanced competitiveness in Europe.

• Diversified product portfolio and expansion into defense products with significant export potential.

• Unaudited standalone and consolidated financial results for Q1 FY25 were reviewed and approved by the Board on July 24, 2024, in compliance with Ind-AS and SEBI regulations.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was INR 1,158.24 crores, up from INR 995 crores in Q1 FY24 but down from INR 1,326 crores in Q4 FY24.

• EBITDA for Q1 FY2025 was INR 185.37 crores, with a margin of 16.00%.

• PAT for Q1 FY2025 stood at INR 110.65 crores, with a net margin of 9.55%.

• Diluted EPS grew to 0.77 in Q1 FY25.

• Order book as of Q1 FY2025 is INR 6,776 crores, up from INR 6,585 crores in Q1 FY24.

Outlook and guidance

• Revenue expected to grow 25%-30% in FY2025, driven by telecom equipment and passive connectivity solutions.

• Telecom equipment revenue projected to rise from INR 143 crores in FY2024 to INR 2,000 crores in FY2025.

• Passive connectivity solutions revenue expected to reach INR 250 crores in FY2025 and INR 750 crores in 2-3 years.

• Long-term annual growth target of 20%-30%, with telecom equipment, fiber optic cable, and EPC businesses each aiming for INR 3,000 crores in three years.

• Deferred tax asset recognized on unabsorbed capital losses due to virtual certainty of future taxable profits.