HFCL (HFCL) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 revenue reached ₹1,158.24 crore, up 16.38% year-over-year, driven by innovation and new product launches in telecom and defense sectors.

• Profit after tax for Q1 FY2025 stood at ₹110.65 crore, with a net margin of 9.55%.

• Order book as of Q1 FY2025 is ₹6,776 crore, with a favorable shift toward product business.

• Exempted from EU anti-dumping duties on optical fiber cables, enhancing competitiveness in Europe.

• Unaudited standalone and consolidated financial results for Q1 FY25 were reviewed and approved by the Board on July 24, 2024.

Financial highlights

• Q1 FY2025 consolidated revenue: ₹1,158.24 crore (Q1 FY2024: ₹995.19 crore; Q4 FY2024: ₹1,326 crore).

• EBITDA for Q1 FY2025 was ₹185.37 crore, with a margin of 15%-16%.

• PAT for Q1 FY2025 was ₹110.65 crore, up 46.44% YoY; EPS (diluted) at ₹0.77, up 57.14% YoY.

• Net margin improved to 9.55% from 7.59% YoY.

• Tax rate fell due to recognition of deferred tax asset from long-term carried forward losses.

Outlook and guidance

• Revenue expected to grow 25%-30% in FY2025, driven by telecom equipment and passive connectivity solutions.

• Telecom equipment revenue projected to rise from ₹143 crore in FY2024 to ₹2,000 crore in FY2025.

• Diversified product portfolio and ongoing capacity expansions expected to support growth despite temporary OFC market slowdown.

• PLI/DLI incentives of ₹650 crore to start in FY2025, with a 6% incentive rate.

• Deferred tax asset recognized on unabsorbed capital losses due to virtual certainty of future taxable profits.