HFCL (HFCL) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 sales fell 25% and profit fell 69% YoY amid global recession and intense competition; no equity or preference dividend was recommended.

• Focus remained on telecom equipment manufacturing and turnkey services, supported by an order book of ₹455 crore at 31 March 2002.

Financial highlights

• Sales and services were ₹970.70 crore vs ₹1,294.19 crore; total income was ₹974.56 crore vs ₹1,457.33 crore.

• PBT was ₹51.08 crore vs ₹173.98 crore; profit for the year was ₹40.65 crore vs ₹130.92 crore.

• EPS was ₹3.83 vs ₹14.59; turnover in the five-year highlights was ₹971 crore vs ₹1,294 crore.

• Finance charges rose to ₹64.05 crore from ₹35.00 crore; depreciation rose to ₹25.60 crore from ₹19.31 crore.

Outlook and guidance

• FY 2002-03 outlook centered on strengthening telecom products and services and developing indigenous products through R&D.

• Order book stood at ₹455 crore at 31 March 2002, with a further ₹443 crore of orders expected from tenders already qualified.

• Planned proceeds from divestments were to reduce debt and support working capital for core operations; alternative plans to raise capital were also noted.