Hfcl Limited · NSE:HFCL
Hfcl — Q3 FY2021 Earnings Presentation
26 slides from Hfcl's earnings presentation, Jan 15, 2021
Slide 1: Earnings Presentation intimation letter to stock exchanges
\ secretarial@hfcl.com January 15, 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
Slide 2: Earnings Presentation 9M / Q3-FY21
EARNINGS PRESENTATION 9M / Q3-FY21
Slide 3: Company Overview
Company Overview • HFCL Limited (formerly known as Himachal Futuristic Communications Limited) is a Leading Technology Enterprise connecting the world with fully integrated communication network solutions and specialized services. Telecom • The Company manufactures Optical Fiber, Optical Fiber Cable
Slide 4: Portfolio of Products
Portfolio of Products OPTICAL FIBER CABLES TELECOM PRODUCTS • Aerial Cables • Wi-Fi Network Products • Armoured / Unarmoured Cables • Microwave Radios • FTTx Cables • Cloud-based Management Platform • Duct / Micro Ducts • Telecom Power Systems • Micro Module Cable • Switches • ADSS Cables • Ribbon C
Slide 5: Portfolio of Network Solutions
Portfolio of Network Solutions TELECOMMUNICATION NETWORK RAILWAY COMMUNICATION NETWORK • Turnkey solution for Mainline Railway • OFC Network Telecom Network • FTTx Network • Turnkey solution for Metro Railway Telecom Network • Mobile Network • Integration of Signalling & Telecom • Broadband Access &
Slide 6: Manufacturing Facilities
Manufacturing Facilities OFC Manufacturing OFC Manufacturing Telecom Equipment Manufacturing Chennai, Tamil Nadu Verna, Goa Solan, Himachal Pradesh Capacity: 10.5m fkm Capacity: 8m fkm FTTH Cable Manufacturing Capacity: 2.4L cable km/annum FRP Rods, IFGR, ARP Manufacturing Optical Fiber Manufacturin
Slide 7: Centre for Excellence in Research
Centre for Excellence in Research EMPOWERING INNOVATION, INTRODUCING NEW TECHNOLOGIES STRATEGY Team : Large pool of technocrats with proven track record • Promote In-house R&D & Innovation having International experience and business know-how • Co-innovate with other R&D Houses • In-organic growth b
Slide 8: Recently launched Wi-Fi Technology
Recently launched Wi-Fi Technology Globally benchmarked, Next Generation Wi-Fi Technology products and solutions • IO platform brings efficiency and intelligence to connectivity and assist global citizens to use the most advanced Wi-Fi technology products & solutions while keeping a sharp focus on s
Slide 9: Key Customers
Key Customers / c= <p Gm) Mairtel © io) TATA > vodafone NOKIA orange” «7 Toit Qd econ) A Govt. of India Enterprise RAILTEL -—N (>) IndianOil ayngonll CuILEI glilge LIQUID == Mebly ONG => TEs Ayal dia poet TELECOM Ministry of Interior Kingdom of Saudi Arabia orci) Vi] MERALCO ( ehap6Sl Aga paul AS p2
Slide 10: Global Customers
Global Customers EUROPE • Hungary AMERICAS AUSTRALIA, ASIA • Kuwait • Nigeria • Poland • Cyprus • South Africa • Ireland • Brazil • Bangladesh • UK • Mauritius • Rwanda • Georgia • Canada • Bhutan • Italy • Egypt • Tanzania • Cyprus • Mexico • Burma (Myanmar) • Slovenia • Oman • Uganda • Latvia • Pe
Slide 11: Current Order Book of ~INR 7,313 Cr provides visibility
Current Order Book of ~INR 7,313 Cr provides visibility Order Book To Revenue (INR Cr) 11,350 8,700 8,409 7,313 4,738 3,839 3,000 3,249 3,032 2,203 FY17 FY18 FY19 FY20 9MFY21 Revenue Order Book Total Order book of ~INR 7,313 Cr as on 31st December, 2020 Prestigious orders for supply and ~2.0 times O
Slide 12: Industry Opportunities
Industry Opportunities TELECOM RAILWAYS • 5G, M2M, IoT shall require extensive fiberisation making • Legacy Signaling and Telecom Systems need an overhaul the networks more denser and deeper where about • New rail lines shall also deploy next generation telecom 70%-80% towers shall be required to be
Slide 13: Value Proposition
Value Proposition Leadership Agile Portfolio of Products and Solutions Established leader in providing fully integrated Offers agile portfolio of products and solutions in building Communication Networks for solutions Public, Defence, Railways and other sectors Healthy Order Pipeline Research & Deve
Slide 14: Growth Strategy
Growth Strategy Produce Technology Solutions with competitive capabilities for diverse and expanded Customer Base Guided towards creating Shareholders’ Value with strong Fundamentals for sustained Growth Levers Objectives Goals • Our Centre for Excellence in Research along with Invested R&D Houses a
Slide 15: Financial Overview 9M / Q3-FY21
Financial Overview 9M / Q3-FY21
Slide 16: Financial Goals
Financial Goals Increase profits in absolute value • Focusing on indigenously developed products with own IPRs, ensuring better margins • Choose high margin orders • Cost efficiency measure to continue Continue with Low Gearing & Grow with Increased Returns Effective Working Capital Management & • C
Slide 17: Q3-FY21 Key Highlights - Consolidated
Q3-FY21 Key Highlights - Consolidated Received prestigious order worth ~ INR 678.5 crs from Larsen & Q3-FY21 Financial Highlights Toubro (Consolidated) Commenced production of optical fiber cables for fiber-to- Total Income EBITDA EBIDTA Margins home (FTTH) applications from our Hyderabad facili
Slide 18: Q3-FY21 Consolidated Income Statement
Q3-FY21 Consolidated Income Statement Particulars (INR Mn) Q3-FY21 Q2-FY21 Change Q-o-Q Q3-FY20 Change Y-o-Y Revenue from Operations 12,775 10,543 21.2% 8,535 49.7% Other Income 40 42 88 Total Income 12,815 10,585 21.1% 8,623 48.6% Total Expenses 11,046 9,207 7,582 EBITDA 1,769 1,378 28.4% 1,041 70.
Slide 19: 9M-FY21 Key Highlights - Consolidated
9M-FY21 Key Highlights - Consolidated Received prestigious order worth ~ INR 678.5 crs from Larsen & 9M-FY21 Financial Highlights Toubro in addition to various multiple orders. (Consolidated) Commenced production of optical fiber cables for fiber-to- home (FTTH) applications from our Hyderabad f
Slide 20: 9M-FY21 Consolidated Income Statement
9M-FY21 Consolidated Income Statement Particulars (INR Mn) 9M-FY21 9M-FY20 Change Y-o-Y Revenue from Operations 30,316 31,756 (4.5)% Other Income 121 172 Total Income 30,437 31,928 (4.7)% Total Expenses 26,459 27,530 EBITDA 3,978 4,398 (9.5)% EBITDA Margin (%) 13.07% 13.77% (70)Bps Depreciation 502
Slide 21: 9M-FY21 Performance Metrics – Consolidated
9M-FY21 Performance Metrics – Consolidated Total Income(INR Mn) EBITDA (INR Mn) PBT (INR Mn) 5,162 3,393 3,584 47,805 4,583 38,610 3,978 32,730 30,437 3,076 2,204 2,185 22,243 2,143 1,242 FY17 FY18 FY19 FY20 9MFY21 FY17 FY18 FY19 FY20 9MFY21 FY17 FY18 FY19 FY20 9MFY21 PAT (INR Mn) EBITDA Margin (%)
Slide 22: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY20 FY19 FY18 Revenue from Operations 38,389 47,378 32,485 Other Income 221 427 245 Total Income 38,610 47,805 32,730 Total Expenses 33,448 43,222 29,654 EBITDA 5,162 4,583 3,076 EBITDA Margin (%) 13.37% 9.59% 9.40% Depreciation 420 270
Slide 23: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equities & Liabilities (INR Mn) H1-FY21 FY20 FY19 FY18 Assets (INR Mn) H1-FY21 FY20 FY19 FY18 (A) Share Capital 1,284 1,284 1,274 1,239 (A) Property plant & Equipment 4,170 4,369 2,022 1,657 (B) Other Equity 16,164 15,401 13,143 10,548 (B) Capital Work in Progre
Slide 24: FY20 Performance Metrics – Consolidated
FY20 Performance Metrics – Consolidated Debt and Equity 1.00 Free Cash Flow (INR Mn) 16,685 14,317 979 1,193 12,169 214 10,461 0.50 0.44 0.34 0.41 7,116 0.43 -1,163 5,903 4,582 4,077 - FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Debt (INR Mn) Equity (INR Mn) D/E Ratio RoCE (%) EPS (INR) 23.60% 1.75 1.76
Slide 25: Capital Market Information
Capital Market Information HFCL Sensex 60% 40% 20% 0% -20% -40% -60% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Price Data (As On 31st December, 2020) Shareholding - (As on 31st December, 2020) Face value (INR) 1.0 FIIs 2% Market Price (INR) 25.75 52 Week H/L
Slide 26: 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