HFCL (HFCL) Q4 01/02 earnings summary

Executive summary

• FY02 sales and services fell 25% YoY to Rs970.70 crore; net profit dropped 69% to Rs40.65 crore, amid recession and intense competition. No dividend was recommended.

• Standalone results remained profitable, while consolidated accounts reported a Rs1,442.52 crore loss after minority interest, with HFCL Infotel’s start-up losses a major contributor.

Financial highlights

• Standalone PBT was Rs51.08 crore versus Rs173.98 crore in FY01; PAT was Rs40.65 crore versus Rs130.92 crore.

• Standalone profit before depreciation, finance charges and tax was Rs140.73 crore, down from Rs228.29 crore; finance charges rose to Rs64.05 crore from Rs35.00 crore.

• Sales and services were Rs970.70 crore; other income was Rs17.72 crore and net loss on investment sales was Rs2.95 crore.

• Cash and bank balances closed at Rs4.66 crore versus Rs7.54 crore; net current assets declined to Rs671.51 crore from Rs1,587.28 crore.

Outlook and guidance

• FY03 focus remained telecom transmission and access equipment, turnkey services, product strengthening and indigenous R&D to support revenue and profitability.

• Order book was Rs455 crore at 31 March 2002, with another Rs443 crore of orders expected from tenders qualified.

• FY03 asset divestments were under consideration, with proceeds intended for debt reduction and core-business working capital; further capital raising was identified as an alternative.