Hot Pursuit
HFCL reported consolidated net loss of Rs 81.43 crore in Q4 FY25 as against net profit of Rs 110.6 crore posted in Q4 FY24.
Revenue from operations tanked 39.61% year on year on to Rs 800.72 crore in the fourth quarter of FY25.
The firm reported a pre-tax loss of Rs 104.93 crore in Q4 FY25, compared to a profit before tax of Rs 149.45 crore in Q4 FY24.
Total expenses tumbled 22.85% year-on-year to Rs 918.19 crore during the quarter. Cost of materials/services consumed were Rs 785.63 crore (up 70.50% YoY), while finance costs were Rs 46.76 crore (up 74.72% YoY) during the period under review.
The company reported a negative EBITDA of Rs 22.23 crore in Q4 FY25, against an EBITDA of Rs 209.29 crore in Q4 FY24. EBITDA margin stood at 2.79% in Q4 FY25, sharply lower than 15.78% in Q4 FY24.
Commenting on the company's performance, Mahendra Nahata, Managing Director of HFCL, said: 'FY25 was a year of strategic progress amid transitional headwinds. Our financial performance was impacted by weak optical fiber cable demand, margin pressure from newly launched telecom products, and slower customer offtake in the EPC business. Despite these challenges, we focused on building a strong foundation for future growth.
With an order book of Rs 9,967 crore and rising product demand, we expect overall performance to improve in FY26. The Optical Fiber and Optical Fiber Cable business is poised for significant revenue growth, backed by rising domestic and global demand. Fiber manufacturing and cable plant capacity utilization, which stood at 45% and 40% respectively in FY25, are ramping up to full utilization ' with the latter expected to reach full scale by July 2025.
Our telecom product portfolio, including routers, 5G Fixed Wireless Access Terminals, Wi-Fi 7 access points, and high-capacity unlicensed band radios, will support revenue growth. In the Defence sector, we anticipate contributions starting Q2 FY26, with strong interest in Ground Surveillance Radars, Electronic Fuses, and a soon-to-be-commercialized Drone Detection Radar.
We've secured a Rs 44.36 crore tactical cable order from the Indian Army via subsidiary HTL Ltd and emerged as L1 bidder for a ₹55 crore Electro Optic devices contract. Our wire harness business is supporting upgrades to fighter aircraft and T-72 tanks, and DRDO has approved tech transfer for two key defence products. A dedicated defence equipment facility has been established in Hosur, Tamil Nadu.
To support the rise of hyperscale data centres globally, we've also bolstered our manufacturing capabilities for data centre-centric connectivity solutions ' a new revenue stream. Exports are a core part of our strategy, with meaningful traction in fiber optic cables, 5G CPEs, routers, Wi-Fi products, and FRP rods. We are also receiving defence equipment enquiries from global markets. With our strong order pipeline and capacity utilization reaching full scale, we expect revenue to grow by 25'30% in FY26.
Looking ahead, with robust order inflow, strategic investments maturing, and growth across telecom, defence, and data connectivity, we are confident of a strong rebound in FY26. Our focus remains on innovation, global expansion, and long-term value creation.'
The board of directors has approved a dividend of 10% for FY25, i.e., Rs 0.10 per equity share of face value Re 1 each, subject to shareholder approval at the upcoming annual general meeting (AGM).
HFCL is engaged in business of manufacturing of range of products in optical fiber cable (OFC), optical fiber and telecom and networking equipment. The company also provides an end-to-end portfolio of integrated next generation optical and data networking solutions for telecommunication, defence communication and railway communication.
Shares of HFCL rose 0.28% to Rs 84.74 on the BSE.
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