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HFCL Witnessed Profit Booking Despite a Jump In Net Profit

25 September 20233 mins read by Angel One
During FY23 the company has significantly increased revenues from international business to Rs.817 crore from Rs 363 crore in FY22 witnessing a growth of 125% on a YoY basis.
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HFCL Limited (HFCL),India’s leading technology enterprise with operations in manufacturing of high-end telecom equipment, optical fiber and optical fiber cables and offering communication network solutions for Telcos, Defence and Railways sectors announced its Audited Financial results for the fourth quarter and year ended March 31, 2023.

The consolidated revenue of the company jumped 21.13% YoY to Rs 1433 crore for the fourth quarter of FY23. EBITDA stood at Rs 168 crore which grew by 9.43% YoY. EBITDA margins dropped by 125 bps YoY to 11.74% as compared 12.99% in the fourth quarter of FY22. Profit after tax grew by 15.49% YoY to Rs 79 crore and PAT margins stood at 5.49% which declined by 27bps in the fourth quarter of FY23.

Check: HFCL Share Price

For the FY23 revenue of the company was almost flat at Rs 4,743 crore when compared to FY22. EBITDA stood at Rs 665, a drop of 3.91% YoY basis. EBITDA margins declined by 62bps on YoY basis and PAT too declined by 2.50% YoY to Rs 317 crore. That said, the revenue in FY23 from international business grew by a staggering 125% YoY. Revenue from private customers increased to 83% in FY23 from 68% in FY22. Company has a robust order book worth more than Rs 7000 crore.

The stock price opened with a marginal downtick and the open level of the day also so far has turned out to be the highest point of the day at Rs 66 on NSE. The stock is currently trading down by 1.74% at Rs 65.10, the level of Rs 63.70 is an important support for the stock as the important short-term moving average 20-DMA is placed around this region.

Commenting on the Company’s performance, Mr. Mahendra Nahata, Managing Director, HFCL, said, “The Company is expanding its optic fibre capacity from existing 10mn fkm to 25mn fkm and optic fibre cable capacity from 25mn fkm to 35mn fkm by FY25. The Company is simultaneously developing various 5G Radio Access Network Products,Transport products and broadband wireless products which are expected to be launched during the current financial year. These initiatives will not only add to the revenue but will also increase profitability of the Company significantly. We are excited about the future of HFCL and look forward to continuing our commitment to delivering innovative communication solutions that connect people and business Worldwide.”

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