Hfcl Limited · NSE:HFCL
Hfcl — Investor Presentation (August 2019)
48 slides from Hfcl's investor presentation, Aug 5, 2019
Slide 1: Regulation 30 Cover Letter to Stock Exchanges
E ©:a HIMACHAL FUTURISTIC COMMUNICATIONS LTO. 8, Commercial Complex, Masjid Moth, Greater Kailash - II, New Delhi - 110048, India HFCL GROUP ©a An Environment conscious company certified to Tel Fax Web (+91 11) 3088 2624, 3088 2626 (+9111) 3068 9013 www.hfcl.com ISO 1400 I Standard Email : secretari
Slide 2: Himachal Futuristic Communications Ltd. Presentation August 2019
HIMACHAL FUTURISTIC COMMUNICATIONS LTD. PRESENTATION AUGUST, 2019
Slide 3: Company Overview
~~ COMPANY OVERVIEW
Slide 4: Company Overview
Company Overview State‐of‐the‐art Manufacturing Facilities • Himachal Futuristic Communications Ltd. (HFCL) is an established leader offering fully integrated • OFC manufacturing at Verna, Goa & through subsidiary communication network solutions. at Chennai, Tamil Nadu • Telecom Equipment manufactur
Slide 5: Board Of Directors
Board Of Directors Mahendra Pratap Shukla ‐ (Non‐Executive Chairman) Ranjeet Anand Kumar Soni (Non‐Executive Director ‐(Nominee • An Electrical Engineer with vast experience in Telecom Industry – IDBI) • Ex‐Chairman & MD of TCIL & MTNL • Masters In Mathematics & JAIIB Certification From Indian • Awa
Slide 6: Leadership Team
Leadership Team Board of Directors Managing Director Mahendra Nahata SBU Heads Business & Technology Heads Functional Heads Jitendra Chaudhary Ashwani Gupta V. R. Jain Telecom Executive Director Finance Col. B. B. Singh S. K. Garg Vibhas Joshi Defence Comm. Services Shiv Kumar Singh Supply Chain Man
Slide 7: Key Milestones
Key Milestones Set up : ‐Railways Communication, Smart City, Defence communication as new Setup Turnkey business verticals. Wireline Division Manufacturing Forayed into ‐Defence equipment Facility providing fully business vertical with Set up at Solan, integrated Capacity of Goa Capacity of Goa 2014
Slide 8: Manufacturing Facilities
Manufacturing Facilities OFC Manufacturing Verna, Goa Capacity: 8m fkm Telecom Equipment Manufacturing Solan, Himachal Pradesh OFC Manufacturing Chennai, Tamil Nadu Capacity: 7m fkm Planned expansion : 3.5m fkm FRP Rods, IFGR, ARP Manufacturing Hosur, Tamil Nadu Capacity: FRP Thermal ‐ UV 7,66,800 k
Slide 9: Research & Development Capabilities
Research & Development Capabilities Strategy • R&D initiatives in house and in partnership with others • Develop products which can be sold globally and can be bench marked with other leading global manufacturers Team • Over 100 people with proven track record, International experience and Indian bu
Slide 10: Key Customers
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Slide 11: Customer Presence
Customer Presence EUROPE • Germany AMERICAS ASIA • Singapore • UAE • Uganda • Ireland • Hungary • Brazil • Bangladesh • Sri Lanka • Saudi Arabia • Zimbabwe • Bosnia and • Poland • Canada • Bhutan • Iran • Somalia Herzegovina • UK • Mexico • Burma • Kuwait • Latvia • Italy • Peru (Myanmar) • Cyprus A
Slide 12: Products and Solutions Portfolio
PRODUCTS AND SOLUTIONS PORTFOLIO 11
Slide 13: Portfolio of Products
Portfolio of Products OPTICAL FIBER CABLES TELECOM PRODUCTS SURVEILLANCE PRODUCTS DEFENCE PRODUCTS • Aerial Cables • GSM BSS Equipment • Video Management System UNDER FIELD TRIAL • Armoured / Unarmoured • Microwave Radios • Video Analytics • Unmanned Aerial Cables • Telecom Power Solution • Automati
Slide 14: Optical Fiber Cables
Optical Fiber Cables Conventional cables • Armoured Cable • Aerial Cables‐ ADSS and Figure‐8 • Ribbon Cables FTTH Cable Applications • Indoor/Outdoor cables • Micro‐duct / Mini‐cables / Air Blown Cables Long Distance Network • FTTH Cables • In‐Premises Cables Intra‐city Network FTTH Network Specialt
Slide 15: Telecom Products
Telecom Products Microwave Radio Equipment Unlicensed Band Radio Integrated high bandwidth radio unit with centralized network Provide high speed point‐to‐point management and point‐to multi‐point connectivity solution in unlicensed ISM bands. GSM BSS Equipment Telecom Power Solution Small Size GSM
Slide 16: Surveillance Products
Surveillance Products VMS Video Management System • Focused on Smart City Solutions, City Surveillance, Traffic Enforcement, Critical PMS Infrastructure Protection, Parking Management VA System Video Analytics Industrial & Government Projects • Company believes in developing HTMS ANPR Innovative Sol
Slide 17: Defence Products
Defence Products The nascent steps that HFCL started taking in Defence manufacturing a couple of years ago, under the ‘Make in Electro Optical Devices (Night Unmanned Aerial Vehicles Electronic Fuses for all types India’ initiative, have Vision Devices) (UAVs) of ammunition been growing steadily in
Slide 18: Portfolio of Solutions
Portfolio of Solutions RAILWAY COMMUNICATION & SMART CITY & SURVEILLANCE TELECOM NETWORK DEFENCE NETWORK SIGNALING NETWORK NETWORK (Metro Rail & Main Line ) • OFC Network • OFC Network • Safe City Solutions • Network & Equipment • FTTx Network Design • Intelligent Traffic • Optical Transport Network
Slide 19: Telecom Network Solutions
Telecom Network Solutions OFC Network • OFC Survey & Network Design • fiber Deployment • Site and Infrastructure Built‐up WIFI : Providing complete eco system for WIFI • Installation & commissioning services • Operations & Maintenance • Design and Implementation of WIFI solutions • Offering entire r
Slide 20: Defence Network Solutions
Defence Network Solutions Fiber Network Rollout of dedicated optical fiber network for armed forces Optical Transport Network IPMPLS Network (Routing & Switching) Rollout of exclusive and dedicated Nationwide Converged Nationwide IP/MPLS Backbone Network with 219 DWDM based Optical Transmission back
Slide 21: Railway Communication Network Solutions
Railway Communication Network Solutions • In order to leverage its telecom product and EPC capabilities in adjacent space, Company has ventured into railways business • HFCL offers integrated solutions crafting a combination of its own products and those others from leading manufacturing OEM partner
Slide 22: Smart City & Surveillance Solutions
Smart City & Surveillance Solutions Projects executed HFCL’s offerings in the Safe & Smart city domain include key core solutions like Communication / IT / Telecom infrastructure, data centre, disaster recovery and Ludhiana Safe City management, security, surveillance, traffic management and citizen
Slide 23: Financial Overview
FINANCIAL OVERVIEW 22
Slide 24: Key Highlights – Consolidated Financials – FY19
Key Highlights – Consolidated Financials –FY19 Debt /Equity is Completely EBITDA CAGR of now comfortable Transformed 46% from FY17 to at 0.41x on Growth FY19 PAT up Trajectory from INR 1,237 Mn Debt is largely EBITDA at in FY17 to Working INR 4,582 Mn INR 2,323 Mn in FY19 Capital 37% CAGR Credit rat
Slide 25: Q1-FY20 Financial Highlights - Consolidated
Q1‐FY20 Financial Highlights ‐ Consolidated Q1‐FY20 Financial Highlights (Consolidated): Q1‐FY19 Financial Highlights (Consolidated): Total Total EBITDA EBITDA EBIDTA EBIDTA Income Income INR 1,942 Margins INR 952 Margins INR 13,490 INR 10,936 Mn 14.40% Mn 8.71 % Mn Mn Net Profit PAT Diluted Net Pro
Slide 26: Q1-FY20 Financial Highlights - Standalone
Q1‐FY20 Financial Highlights ‐ Standalone Q1‐FY20 Financial Highlights (Standalone): Q1‐FY19 Financial Highlights (Standalone): Total Total EBITDA EBITDA EBIDTA EBIDTA Income Income INR 1,643 Margins INR 891 Margins INR 12,050 INR 10,365 Mn 13.63% Mn 8.60% Mn Mn Net Profit PAT Diluted Net Profit PAT
Slide 27: FY19 Performance Metrics – Consolidated
FY19 Performance Metrics – Consolidated Revenue Summary 12.0% 47,848 0.44 Debt and Equity 0.50 9.4% 14,417 9.6% 9.6% 10.0% 12,391 0.40 0.41 32,730 8.0% 10,446 0.33 0.30 22,243 6.0% 5.6% 0.20 5.3% 4.0% 5,903 4.9% 4,582 4,083 0.10 2.0% 0.0% ‐ FY17 FY18 FY19 FY17 FY18 FY19 Revenue (INR Mn) EBITDA Margi
Slide 28: Strong Order Book of ~INR 10,275 Cr provides visibility
Strong Order Book of ~INR 10,275 Cr provides visibility Total Order book of ~INR 10,275 Cr Order Book To Revenue (INR Cr) 11,350 10,275 • Prestigious orders 8,700 spread across all business verticals‐ telecom, defence, 4,784 railways, OFC Turnkey & 3,273 3,000 manufacturing, Smart 2,224 Cities and p
Slide 29: Q1-FY20 Consolidated Income Statement (IND-AS)
Q1‐FY20 Consolidated Income Statement (IND‐AS) PARTICULARS (INR Mn) Q1‐FY20 Q4‐FY19 Q‐o‐Q Q1‐FY19 Y‐o‐Y Revenue from Operations 13,427 12,155 10.5% 10,883 23.4% Other Income 63 356 (82.3)% 53 18.9% Total Income 13,490 12,511 7.8% 10,936 23.4% Total Expenses 11,548 11,156 3.5% 9,984 15.7% EBITDA 1,94
Slide 30: Q1-FY20 Standalone Income Statement (IND-AS)
Q1‐FY20 Standalone Income Statement (IND‐AS) PARTICULARS (INR Mn) Q1‐FY20 Q4‐FY19 Q‐o‐Q Q1‐FY19 Y‐o‐Y Revenue from Operations 12,006 10,947 9.7% 10,315 16.4% Other Income 44 425 (89.6)% 50 (12.0)% Total Income 12,050 11,372 6.0% 10,365 16.3% Total Expenses 10,407 10,295 1.1% 9,474 9.8% EBITDA 1,643
Slide 31: Historical Income Statement (IND-AS)
Historical Income Statement (IND‐AS) STANDALONE CONSOLIDATED PARTICULARS (INR Mn) FY17 FY18 FY19 FY17 FY18 FY19 Revenue from Operations 20,668 30,802 43,662 22,029 32,485 47,378 Other Income 186 183 480 214 245 470 Total Income 20,854 30,985 44,142 22,243 32,730 47,848 Total Expenses 18,860 28,159 4
Slide 32: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet EQUITIES & LIABILITIES (INR Mn) FY17 FY18 FY19 ASSETS (INR Mn) FY17 FY18 FY19 (A) Share Capital 1,239 1,239 1,274 (A) Property plant & Equipment 1,582 1,657 2,022 (B) Other Equity 8,402 10,548 13,142 (B) Capital Work in Progress 17 17 640 (C) Goodwill 258 259 25
Slide 33: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet EQUITIES & LIABILITIES (INR Mn) FY17 FY18 FY19 ASSETS (INR Mn) FY17 FY18 FY19 (A) Share Capital 1,239 1,239 1,274 (A) Property plant & Equipment 1,068 1,074 1,076 (B) Other Equity 9,196 10,921 13,162 (B) Capital Work in Progress 14 14 622 (C) Other Intangible Asse
Slide 34: Industry Overview
iROUP INDUSTRY OVERVIEW 33
Slide 35: Telecom - Mature Eco-system Is Driving Growth
Telecom ‐ Mature Eco‐system Is Driving Growth Growing Internet Community • Internet Subscribers grew at CAGR of 25% (2013‐18) 604 Mn in Dec 2018 • Broadband Subscribers stand at 525 Mn in Dec 2018 at CAGR of 85% (2013‐18) Data Consumption Pattern • Total Data usage per month grew ~40 times in last t
Slide 36: Telecom - Industry Growth
Telecom ‐ Industry Growth Internet Subscribers (Mn) 3G/4G device base (Mn) 900 530 432 604 379 494 310 335 422 343 218 128 47 Mar‐16 Mar‐17 Mar‐18 Dec‐18 Dec ‐22 2015 2016 2017 2018 3G 4G Internet Traffic Per month (Exabyte) Internet Speed (Mbps) 31.2 15.5 9.5 2.1 5.1 6.6 0.9 1.2 2015 2016 2017 2022
Slide 37: Telecom - Data Consumption To Leap Frog
Telecom ‐ Data Consumption To Leap Frog Data Usage Per Month, Pentabyte (Pb) Per Subs Data Usage / Price per GB (INR) 4,867 226.0 9.43 4,472 2,360 5.59 966 76.0 128 1,930 398 395 0.79 19.0 82 823 2.69 11.0 103 32 46 40 2015 0 2016 2017 2018 2015 2016 2017 2018 2G 3G 4G Total Data Usage per Month (Mb
Slide 38: Telecom - National Digital Communications Policy, 2018
Telecom ‐ National Digital Communications Policy, 2018 Target 2022 Connect India: Fixed By Creating a Robust Digital Communication Infrastructure 25 Mbps Broadband 50 Mbps • Provide Universal broadband connectivity at 50 Mbps to every citizen • Provide 1 Gbps connectivity to all Gram Panchayats of I
Slide 39: Telecom Opportunity
Telecom Opportunity 4G,5G • 4G is the key driver behind increasing users’ appetite towards data consumption. Aggressive 4G expansion is capturing 92% share of total data traffic • Only 20‐25 per cent of sites in India are fiberized, a number that needs to go up to 80‐85 per cent by 2022 to support 5
Slide 40: Defence Opportunity
Defence Opportunity • India is the largest importer of defence equipment in the world where the imports account for nearly 65% of the country’s military requirement. • India has spent USD 100 Bn in last one decade to buy 65 per cent of its defence equipment therefore, the government has set a goal t
Slide 41: Railways Opportunity
Railways Opportunity • India is one of the largest rail networks in the world and is expanding like never before with FY18 revenues at USD 27.71 Bn (CAGR of ~10% during FY07‐FY18) • Legacy Signaling and Telecom Systems are integral parts of Railways and need an overhaul and upgradation to strengthen
Slide 42: Smart Cities & Surveillance Opportunity
Smart Cities & Surveillance Opportunity Role of ICT in Smart City • Hundred cities have been selected under Smart Cities Project at an outlay of over Intelligent and INR 2 lakh Cr efficient Cost and energy use of savings Planning resources • High speed Communication technology of ICT shall play a ke
Slide 43: Massive US$ 100 Bn+ Industry Opportunities
Massive US$ 100 Bn+ Industry Opportunities Fiberizing 70% of the towers FTTH shall play a GoI’s push in Huge will require an estimated significant role in fast‐tracking its Smart City Infrastructure 600,000 fkm, at an broadband vision. mission is yielding results expenditure investment of INR 560 Bn
Slide 44: Status of Shares Pledged by Promoters
Status of Shares Pledged by Promoters • Promoters have extended support to the Company by way of pledge as a security towards credit facilities availed by the Company. • None of the Promoters’ holding has been pledged against their personal / third party obligations 69% of the Promoters’ holding is
Slide 45: Value Proposition
Value Proposition Agile Portfolio of Products and Solutions Leadership Agile portfolio of products and solutions backed by excellent Established leader in providing fully integrated solutions in building manufacturing facilities Communication Networks for Telecom, Defence, Railways and other sectors
Slide 46: Capital Market Information
Capital Market Information Share Price Data – 30th June, 2019 20% 10% 0% ‐10% ‐20% ‐30% ‐40% ‐50% Jul‐18 Aug‐18 Sep‐18 Oct‐18 Nov‐18 Dec‐18 Jan‐19 Feb‐19 Mar‐19 Apr‐19 May‐19 Jun‐19 SENSEX HFCL Shareholding ‐ (As on 30th June, 2019) PRICE DATA (AS ON 30th June, 2019) FIIs DIIs 5% 2% Face value (INR)
Slide 47: Glossary
Glossary ADSS : All‐Dielectric Self‐Supporting ANPR : Automatic Number Plate Recognition ARP : Aramid Reinforcement Plastic CCTV : Closed Circuit Television CMS : Challan management System CPRI : Common Public radio Interface DWDM : Dense Wave Digital Multiplexing EBIDTA : Earing before Depreciation
Slide 48: Disclaimer
Disclaimer Himachal Futuristic Communications 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 opinion
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