HFCL (HFCL) Q4 97/98 earnings summary

Executive summary

• FY1997-98 turnover was reported at Rs 210 crore; performance faced lower DoT procurement volumes, price pressure and intense competition.

• Private-operator demand began to improve, while turnkey execution, optical fibre cable and new telecom products supported expansion into growth markets.

Financial highlights

• Sales, services and other income were Rs 21,034.25 lakh in FY1997-98, versus Rs 21,118.86 lakh in FY1996-97.

• Profit before tax was Rs 231,868,455; the directors’ results show net profit after prior-period adjustments of Rs 1,414.29 lakh.

• Non-recurring charges included Rs 31,934,400 for diminution in investment value and other items, a Rs 31,213,399 loss on fixed-asset sales and a Rs 2,449,923 loss on current-investment sales.

• Recommended dividends: 7% on equity shares and 13.65% and 12% on cumulative redeemable preference shares.

Outlook and guidance

• SDH systems had orders exceeding Rs 40 crore for execution in the current year; DoT orders for Fibre-in-Local-Loop systems were worth Rs 1,050 lakh.

• The International Division held turnkey transmission-network orders worth around Rs 192 crore, with projects for basic and cellular services.

• 18 GHz 8 Mb radios were in production, with 7 GHz, 15 GHz and 23 GHz radios planned for introduction during the current year.

• Plant expansion to 50,000 sq. ft. was complete, with the final phase expected by year-end.