HFCL Reports Q3FY24 Financial Results: Order Book Surges, Revenue Records Marginal Dip
Feb 09, 2024: HFCL Limited, a leading technology enterprise specializing in high-end telecom equipment and communication solutions, unveiled its financial performance for the third quarter ending December 31, 2023. While the company’s order book saw a robust surge, recording ₹7,678 crores, the revenue witnessed a marginal decrease compared to the same period last year.
Order Book Hits New High:
HFCL’s order book stood at an impressive ₹7,678 crores during Q3FY24, showcasing a commendable increase from ₹7,064 crores in Q3FY23. The notable highlight was the acquisition of a substantial order worth ₹623 crores for 5G telecom networking equipment, marking a significant milestone as the first such order for an Indian company. This success underlines HFCL’s growing influence in the telecom equipment sector.
In terms of revenue, HFCL reported ₹1,032.31 crores for Q3FY24, representing a marginal decline from ₹1,085.84 crores in Q3FY23. While experiencing a decrease, the company has sustained a healthy growth trajectory, and its strategic initiatives continue to fuel innovation and product-centric growth.
Despite the dip in revenue, HFCL maintained robust financial margins during Q3FY24. The EBIDTA margin stood at 15.83%, a slight decrease from 17.80% in Q3FY23. Similarly, the PBT margin was reported at 10.45%, down from 12.61% in the same period last year. The PAT margin also saw a marginal decrease from 9.36% in Q3FY23 to 7.99% in Q3FY24.
Strategic Developments and Outlook:
HFCL’s Managing Director, Mr. Mahendra Nahata, attributed the company’s resilient performance to its focus on innovation, a product-centric approach, and expanding into new geographies. The successful acquisition of substantial orders, including the ₹623 crores 5G equipment order, demonstrates HFCL’s commitment to staying at the forefront of technological advancements.
Looking ahead to FY2024-25, Mr. Nahata expressed optimism, anticipating significant progress in launching new products, expanding international business, and achieving increased revenue and profitability. HFCL remains poised to capture a larger market share in India and key global markets.
While the dip in revenue warrants attention, HFCL’s impressive order book and strategic initiatives underscore the company’s resilience and capacity for sustained growth. The successful entry into new product segments and the strategic 5G equipment order position HFCL as a key player in India’s telecom equipment landscape. The upcoming fiscal year holds promising prospects for the company as it continues its trajectory of innovation and market expansion.