HFCL Limited, a domestic telecom equipment and optical fiber maker, reported a 46% increase in net profit, reaching ₹111 crore in the first quarter ending June 30. The company’s consolidated revenue rose 16.38% year-on-year to ₹1,158 crore but fell 12.66% from ₹1,326 crore sequentially. EBITDA stood at ₹185 crore, up 16.13%.
Mahendra Nahata, HFCL’s managing director, highlighted the expansion of 5G networks, FTTH implementation, data center growth, AI advancements, and the BharatNet Phase III Project as key opportunities for the company. He noted HFCL’s investments in R&D and capacity expansion, positioning the company to benefit from these opportunities.
Nahata mentioned a shift towards higher-margin products, a move from government to private customers, and an increasing share of international business, all contributing to improved profitability. The European Commission has recognized HFCL as the only Indian company exempt from anti-dumping duties on optical fiber cables, enhancing its competitive edge in Europe.
HFCL plans to supply its own designed and developed products, including optical fiber cables, routers, and connectivity solutions, for the BharatNet Phase III project. The company expects significant contributions to revenue and profitability from 5G Fixed Wireless Access (FWA) Customer Premises Equipment, Unlicensed Band Radio (UBR), routers, switches, and other telecom products.
Despite a current slowdown in the global optical fiber cable market, HFCL anticipates growth resuming in the last quarter of FY 2024-25. To counter the slowdown, HFCL is expanding its business in Passive Connectivity Solutions, targeting telecom and data center segments.
HFCL is also in advanced talks to export defense products, including electronic fuzes, to several countries. Nahata emphasized the growth in the Indian defense sector, driven by a focus on local manufacturing, which benefits HFCL’s comprehensive portfolio of defense products gaining traction in domestic and select global markets.
