HFCL (HFCL) Q4 00/01 earnings summary

Executive summary

• FY01 turnover rose 124% YoY to Rs.1,294.19 crore; PAT increased 52% to Rs.130.92 crore. Turnkey projects drove most revenue growth.

• Strong operating performance was offset by significant provisions and uncertainty over recovery of strategic-investment advances.

Financial highlights

• Sales and services were Rs.1,294.19 crore; total sales, services and other income were Rs.1,420.60 crore, versus Rs.597.39 crore in FY00.

• PBT was Rs.173.98 crore versus Rs.96.98 crore; PAT was Rs.130.92 crore versus Rs.85.97 crore.

• Operating profit rose 133% YoY to Rs.323.55 crore; operating margin was 25%, versus 23.99% in FY00.

• Other income increased to Rs.98.50 crore from Rs.20.86 crore; it included Rs.96.91 crore of interest income.

• Exceptional and risk-related charges included Rs.20.18 crore for investment diminution, Rs.45.76 crore for doubtful loans and advances, and Rs.15.44 crore of loans and advances written off.

Outlook and guidance

• Order book exceeded Rs.875 crore, with a further Rs.300 crore of orders expected during FY02; the stated expectation was to achieve envisaged FY02 growth.

• Continued focus on transmission and access equipment, optical fibre cable, and end-to-end telecom project execution; bidding opportunities included BSNL and MTNL.

• R&D capability in Gurgaon was to be strengthened through collaboration, including with IIT Chennai and IIS Bangalore.