HFCL (HFCL) Q4 03/04 earnings summary

Executive summary

• FY04 revenue declined 9% to ₹810.09 crore; a ₹268.43 crore net loss followed substantial debt and advance write-offs and provisions. No dividend was recommended.

• Consolidated revenue was ₹1,123.20 crore and consolidated loss after minority interest was ₹320.85 crore; both telecom subsidiaries also reported losses.

Financial highlights

• Standalone sales and services were ₹810.09 crore versus ₹891.59 crore in FY03; other income was ₹16.07 crore versus ₹13.47 crore.

• Standalone loss for the year was ₹268.43 crore after ₹291.91 crore of debt and advance write-offs and provisions; deferred tax liability reversal added ₹49.03 crore.

• Finance charges were ₹112.38 crore and depreciation ₹25.82 crore; standalone EPS was (₹10.02) basic and (₹9.11) diluted.

• Consolidated sales and services were ₹1,123.20 crore, down from ₹1,285.26 crore; consolidated loss after minority interest was ₹320.85 crore and EPS was (₹12.54).

Outlook and guidance

• Focus remains on transmission and access equipment, turnkey telecom services and indigenous product development through R&D centres and institute collaborations.

• Management expected telecom-sector demand to benefit from low penetration, broadband expansion and mobile growth; it targeted improved revenue and profitability through stronger and new products.

• HTL began FY05 with a ₹197.64 crore order book and anticipated a potential ₹134 crore NIB-II order; execution depended on working-capital availability.

• HFCL Infotel expected subscriber and revenue growth to continue and targeted cash break-even in FY05.