Slide 1: Earnings Presentation Intimation Letter to Exchanges
secretarial@hfcl.com May 11, 2021 The BSE Ltd. The National Stock Exchange of India Ltd. 1st Floor, New Trading Wing, Rotunda Building Exchange Plaza, 5th Floor, C – 1, Block G Phiroze Jeejeebhoy Towers, Dalal Street, Fort Bandra – Kurla Complex, Bandra (E) Mumbai – 400001 Mumbai – 400051 corp.relat
Slide 2: HFCL Limited Investor Presentation May 2021
HFCL LIMITED Investor Presentation May 2021
Slide 3: HFCL at a Glance
HFCL at a Glance Technology-led enterprise focusing on Diversified Product Offering Wide Industries Served innovation and development of best- Optical Fiber Cable, Optical Fiber, Wi-Fi Telecom, Defence, Railways, Security in-class, cost competitive and Surveillance systems, Microwave Radios, Routers
Slide 4: Board Of Directors
Board Of Directors Mahendra Nahata - Promoter & Managing Director Ramakrishna Eda - Non-Executive Director - (Nominee – IDBI) • Bachelors in Commerce (Hons.) from St. Xavier's College, Kolkata • Masters In Science from Andhra University & MBA from Symbiosis Centre • The pioneer of New Age Telecom Se
Slide 5: Manufacturing Facilities
Manufacturing Facilities OFC Manufacturing Telecom Equipment OFC Manufacturing Verna, Goa Manufacturing Chennai, Tamil Nadu, Capacity: 10.5m fkm Capacity: 8m fkm Solan, Himachal Pradesh FTTH Cable Manufacturing Capacity: 2.4L cable km/annum FRP Rods, IFGR, ARP Manufacturing FTTH Cable Manufacturing
Slide 6: Key Customers
Key Customers Investor Presentation | www.hfcl.com 5
Slide 7: Exporting to 30+ Countries
Exporting to 30+ Countries UK Canada Lithuania Poland Czech Republic Switzerland Ukraine Slovenia Italy USA Spain Macedonia Turkey Greece Cyprus Israel Nepal Qatar Egypt Saudi UAE Mexico Arabia Oman El Salvador Sierra Leone Somalia Nigeria Burundi Zambia Zimbabwe Mauritius Australia Uruguay South Af
Slide 8: Optic Fiber/Optical Fiber Cables & Ancillary Products
Optic Fiber/Optical Fiber Cables & Ancillary Products Investor Presentation | www.hfcl.com 7
Slide 9: Portfolio of Products – Optic Fiber, Optical Fiber Cables & Ancillary products
Portfolio of Products – Optic Fiber, Optical Fiber Cables & Ancillary products Optic fiber Optical Fiber Cables Optic Fiber Unarmoured Cables Aerial Cables Micro module Cables Ribbon Cables FTTH Micro Cables Single mode fiber Medium Tensile, High Tensile and Reduced external High fiber Count, High F
Slide 10: Opportunity landscape in Optic Fiber / Optic Fiber Cables Segment
Opportunity landscape in Optic Fiber / Optic Fiber Cables Segment Continued Government investments in high-capacity networks to aid mass scale OFC demand – Evolution of 5G networks, Digital India, Bharat Net, Defence Communication, PM-WANI, Railways , Smart Cities Dense fiberisation of Telecom Net
Slide 11: Telecom
Telecom Investor Presentation | www.hfcl.com 10
Slide 12: Portfolio of Products – Telecom
Portfolio of Products – Telecom Company has indigenously designed and developed Carrier Grade Wi-Fi systems, Unlicensed Band Radios (UBR) and Ethernet Switches and has already shipped 1.5 lakh units of Wi-Fi and UBR to leading telecom service providers in FY 20-21. Point to point and Point to multi
Slide 13: Telecom Projects under implementation
Telecom Projects under implementation Reliance Jio 4G: • HFCL is one of the largest telecom project service provider for Reliance Jio and is currently engaged in rolling out of 4G OFC Network services across Northern India. • FTTX Network: Deployed a Fiber-to-home network connecting approx. 3.5mn ho
Slide 14: Opportunity landscape in the Telecom Segment
Opportunity landscape in the Telecom Segment 5G technology is the next big upgrade for telecommunication networks and HFCL is gearing up to offer various products, solutions & services for this segment Capex required for 5G deployments on Pan India basis are likely to entail massive investments
Slide 15: Defence
Defence Investor Presentation | www.hfcl.com 14
Slide 16: Portfolio of Products – Defence
Portfolio of Products – Defence Electro Optical Devices (Night Vision Devices) Electronic Fuses for all types of artillery ammunition Electro-optics devices are observation systems based Electronic Fuse are used in ammunitions to initiate an explosive function and to on Thermal Imaging technology an
Slide 17: Defence Communication Projects under implementation
Defence Communication Projects under implementation OFC and Optical Transport Network Fiber Monitoring & Management System Routing Network Microwave Radio Network Transmission Network involving Rollout Involved in Integrating the fiber network Involved in Planning, Designing and Involved in planning
Slide 18: Opportunity landscape in the Defence Segment
Opportunity landscape in the Defence Segment The defence budget allocation has been increased to include modernisation of armed forces and replacement of older equipment and technologies. Defence Procurement Procedure has also been amended to encourage participation by domestic players India's d
Slide 19: Railways
Railways Investor Presentation | www.hfcl.com 18
Slide 20: Railway Communications
Railway Communications Business Development Building on key strength of telecom networks of the Solution Design group with target to become lead supplier for Designing solutions to meet customer requirements communication system in Metro Rail and Main Line Rail Projects Supply and I&C O&M Services S
Slide 21: Opportunity landscape in Railways
Opportunity landscape in Railways The Indian Railways have announced major plans to overhaul the signalling system by spending about INR 850 bn over next 5-6 years and have invited private sector participation in: Manufacture and supply of Telecom equipment and signalling system Deployment of new
Slide 22: Security & Surveillance
Security & Surveillance Investor Presentation | www.hfcl.com 21
Slide 23: Portfolio of Products & Solutions – Security & Surveillance
Portfolio of Products & Solutions – Security & Surveillance VMS VA ANPR RLVD Video Management System Video Analytics Automatic Number Plate Recognition Red Light Violation Detection System • HFCL provides customized and diversified solutions spanning across hardware and software, in line with “MAKE
Slide 24: Opportunity landscape in Security & Surveillance
Opportunity landscape in Security & Surveillance Increased push from governments and law enforcement agencies continues to drive growth for surveillance infrastructure Wider proliferation of AI (artificial intelligence) across the surveillance touch points –cameras, control room, alarm – would d
Slide 25: Security & Surveillance Projects under implementation
Security & Surveillance Projects under implementation HFCL has a vast experience of executing projects in Security and Surveillance domain in areas such as Smart City Projects under Projects Other Projects and Safe City, Defence, execution Executed Executed Airports, Power plants, Defence Ludhiana S
Slide 26: Strategic Overview
Strategic Overview Investor Presentation | www.hfcl.com 25
Slide 27: Key Strengths
Key Strengths The only Indian company to have developed The most integrated ‘nextgen’ communication electronic fuses for artillery ammunition with own products and solutions provider IPRs and also selected for the development of Software Defined Radio (SDR) by Indian Army Pole positions in India - l
Slide 28: Focus on Research and Development
Focus on Research and Development Strategy Empowering Innovation, Introducing New Technologies • Promote In-house R&D & Innovation • Team - Large pool of technocrats with proven track record having • Co-innovate with other R&D Houses International experience and business know-how Expertise : • In-or
Slide 29: Growth Strategy
Growth Strategy Target profitable turnkey projects to leverage on Develop technology as a critical differentiator implementation capabilities Leverage cost competitive manufacturing across Monetize invested capability buildup towards next equipment, cable and accessory portfolio, integrate frontier
Slide 30: Financial Overview Q4-FY21 / FY21
Financial Overview Q4-FY21 / FY21 Investor Presentation | www.hfcl.com 29
Slide 31: Q4-FY21 Key Highlights - Consolidated
Q4-FY21 Key Highlights - Consolidated • Completed 1.5 lakh units’ shipment of Wi-Fi products Q4-FY21 Financial Highlights (Consolidated) within first year of commencement of production • Won contract for setting up entire telecommunication systems for Kanpur Metro and Agra Metro Rail Total Income EB
Slide 32: FY21 Key Highlights - Consolidated
FY21 Key Highlights - Consolidated • Order book remained intact with zero cancellations FY21 Financial Highlights (Consolidated) • Launched and delivered 1.5 lakh units’ shipment of Wi-Fi products within first year of commencement of production Total Income EBITDA EBIDTA Margins • Commenced producti
Slide 33: Q4-FY21 Consolidated Income Statement
Q4-FY21 Consolidated Income Statement Particulars (INR Mn) Q4-FY21 Q3-FY21 Change Q-o-Q Q4-FY20 Change Y-o-Y Revenue from Operations 13,914 12,775 8.9% 6,632 109.8% Other Income 65 127 49 Total Income 13,979 12,902 8.3% 6,681 109.2% Total Expenses 12,101 11,133 5,918 EBITDA 1,878 1,769 6.2% 763 146.
Slide 34: FY21 Consolidated Income Statement
FY21 Consolidated Income Statement Particulars (INR Mn) FY21 FY20 Change Y-o-Y Revenue from Operations 44,230 38,389 15.2% Other Income 361 221 Total Income 44,591 38,610 15.5% Total Expenses 38,734 33,448 EBITDA 5,857 5,162 13.5% EBITDA Margin (%) 13.24% 13.45% -21Bps Depreciation 686 420 Finance C
Slide 35: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY21 FY20 FY19 FY18 Revenue from Operations 44,230 38,389 47,378 32,485 Other Income 361 221 427 245 Total Income 44,591 38,610 47,805 32,730 Total Expenses 38,734 33,448 43,222 29,654 EBITDA 5,857 5,162 4,583 3,076 EBITDA Margin (%) 13.2
Slide 36: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equities & Liabilities (INR Mn) FY21 FY20 FY19 FY18 Assets (INR Mn) FY21 FY20 FY19 FY18 (A) Share Capital 1,284 1,284 1,274 1,239 (A) Property plant & Equipment 4,434 4,369 2,022 1,657 (B) Other Equity 17,878 15,400 13,143 10,548 (B) Capital Work in Progress 118
Slide 37: FY21 Performance Metrics – Consolidated
FY21 Performance Metrics – Consolidated Total Income (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 5,162 5,857 2,373 2,463 47,805 1,237 2,323 44,591 1,717 38,610 4,583 13.24% 5.57% 2,143 6.18% 32,730 3,076 13.45% 4.90% 22,243 9.67% 5.31% 9.52% 10.06% 5.81% FY17 FY18 FY19
Slide 38: Capital Market Information
Capital Market Information 300% 250% 200% 150% 100% 50% 0% -50% Apr/20 May/20 Jun/20 Jul/20 Aug/20 Sep/20 Oct/20 Nov/20 Dec/20 Jan/21 Feb/21 Mar/21 HFCL Sensex Price Data (As On 31st March, 2021) Shareholding – (As on 31st March, 2021) Face value (INR) 1.0 Market Price (INR) 25.2 Public FIIs 56% 2%
Slide 39: Disclaimer
Disclaimer HFCL Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not curren