Slide 1: Exchange filing cover letter: Earnings Presentation
secretarial@hfcl.com HFCL/SECT/20-21/online June 07, 2020 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 Mu
Slide 2: Earnings Presentation Q4-FY20 / FY20
EARNINGS PRESENTATION Q4-FY20 / FY20
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 • Aerial Cables TELECOM PRODUCTS • Armoured / Unarmoured Cables • Wi-Fi Network Products • FTTx Cables • Microwave Radios • Duct / Micro Ducts • Cloud-based Management Platform • Micro Module Cable • Telecom Power Systems • ADSS Cables • LTE BSS Equipment •
Slide 5: Portfolio of Network Solutions
Portfolio of Network Solutions TELECOMMUNICATION NETWORK RAILWAY COMMUNICATION NETWORK • Turnkey solution Mainline Railway • OFC Network Telecom Network • FTTx Network • Turnkey solution for Metro Railway Telecom Network • Mobile Network • Integration of Signalling & Telecom • Broadband Access & Wi-
Slide 6: Manufacturing Facilities
Manufacturing Facilities OFC Manufacturing Telecom Equipment Manufacturing OFC Manufacturing Verna, Goa Solan, Himachal Pradesh Chennai, Tamil Nadu Capacity: 8m fkm Capacity: 10.5m fkm FRP Rods, IFGR, ARP Manufacturing Optical Fiber Manufacturing Hosur, Tamil Nadu Hyderabad, Telangana Capacity: FRP
Slide 7: Centre for Excellence in Research
Centre for Excellence in Research EMPOWERING INNOVATION, INTRODUCING NEW TECHNOLOGIES STRATEGY Team : Available intelligence of a large pool of technocrats • Promote In-house R&D & Innovation with proven track record having International experience and • Co-innovate with other R&D Houses business kn
Slide 8: Recently launched WiFi Technology
Recently launched WiFi Technology Globally benchmarked, Next Generation Wi-Fi Technology products and solutions • IO is a platform that aims to bring in efficiency and intelligence to mobility and assist global citizens to use the most advanced Wi-Fi technology products & solutions while keeping a s
Slide 9: Key Customers
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Slide 10: Global Customers
Global Customers EUROPE AMERICAS AUSTRALIA, ASIA • Iran AFRICA • Kuwait • Ireland • Hungary • Brazil • Bangladesh • Kenya • Cyprus • Bosnia and • Poland • Canada • Bhutan • Nigeria • Mauritania Herzegovina • UK • Mexico • Burma (Myanmar) • South Africa • Morocco • Latvia • Italy • Peru Malaysia • Rw
Slide 11: Current Order Book of ~INR 8,409 Cr provides visibility
Current Order Book of ~INR 8,409 Cr provides visibility Order Book To Revenue (INR Cr) 11,350 8,700 8,409 4,738 3,839 3,000 3,249 2,203 FY17 FY18 FY19 FY20 Revenue Order Book Total Order book of ~INR 8,409 Cr as on 31 March, 2020 Prestigious orders spread across all ~2.2 times O&M Contracts business
Slide 12: Industry Opportunities
Industry Opportunities TELECOM RAILWAYS • 5G, M2M, IoT shall require extensive fiberisation. • Legacy Signaling and Telecom Systems need an Networks shall become denser and deeper. About overhaul 70%-80% towers need to be fiberised • New rail lines shall also deploy next generation telecom and signa
Slide 13: Value Proposition
Value Proposition Leadership Agile Portfolio of Products and Solutions Established leader in providing fully integrated Agile portfolio of products and solutions backed solutions in building Communication Networks for by excellent manufacturing facilities Telecom, Defence, Railways and other sectors
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 alongwith Invested R&D Houses an
Slide 15: Financial Overview Q4FY20/FY20
Financial Overview Q4FY20/FY20
Slide 16: Q4-FY20 Financial Highlights - Consolidated
Q4-FY20 Financial Highlights - Consolidated Supply Chain disruptions from Q4 have impacted Q4-FY20 Financial Highlights (Consolidated) revenue and consequently profit margins •Dispatches were effected during the lockdown period which have now Total Income EBITDA EBIDTA Margins resumed gradually • Th
Slide 17: FY20 Financial Highlights - Consolidated
FY20 Financial Highlights - Consolidated Challenging FY20, yet the Company accelerated its FY20 Financial Highlights (Consolidated) technology thrust with R&D Initiatives , launched its own range of Wi-Fi Solutions. It also increased operating profits and margins Total Income EBITDA EBIDTA Margins •
Slide 18: FY20 Performance Metrics – Consolidated
FY20 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 32,730 3,076 2,204 22,243 2,143 1,242 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 PAT (INR Mn) EBITDA Margin (%) PAT Margin (%) 2,323 2,373 13.37% 6.15% 1,7
Slide 19: FY20 Performance Metrics – Consolidated
FY20 Performance Metrics – Consolidated Debt and Equity Free Cash Flow (INR Mn) 0.44 0.41 0.43 0.50 0.34 16,685 979 1193 14,317 12,169 214 10,461 5,903 7,116 -1163 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 21.50%
Slide 20: Financial Goals
Financial Goals Increase profits in absolute value • Own technology products to deliver good returns • Choose high margin orders • Backward integration to bring in efficiency • Cost efficiency measure to continue Continue with Low Gearing & Grow with Increased Returns Effective Working Capital Manag
Slide 21: Q4-FY20 Consolidated Income Statement (IND-AS)
Q4-FY20 Consolidated Income Statement (IND-AS) Particulars (INR Mn) Q4-FY20 Q3-FY20 Q-o-Q Q4-FY19 Y-o-Y Revenue from Operations 6,632 8,535 (22.3)% 12,155 (45.4)% Other Income 49 88 (44.3)% 314 (84.4)% Total Income 6,681 8,623 (22.5)% 12,469 (46.4)% Total Expenses 5,918 7,583 (22.0)% 11,114 (46.8)%
Slide 22: FY20 Consolidated Income Statement (IND-AS)
FY20 Consolidated Income Statement (IND-AS) Particulars (INR Mn) FY20 FY19 Y-o-Y Revenue from Operations 38,389 47,378 (19.0)% Other Income 221 427 (48.2)% Total Income 38,610 47,805 (19.2)% Total Expenses 33,448 43,222 (22.6)% EBITDA 5,162 4,583 12.6% EBITDA Margin (%) 13.37% 9.59% 378 Bps Deprecia
Slide 23: FY20 Consolidated Balance Sheet
FY20 Consolidated Balance Sheet Equities & Liabilities (INR Mn) FY19 FY20 Assets (INR Mn) FY19 FY20 (A) Share Capital 1,274 1,284 (A) Property plant & Equipment 2,022 4369 (B) Other Equity 13,143 15,401 (B) Capital Work in Progress 640 151 Non Controlling Interest -100 - (C)Right-of-use-Assets 201 T
Slide 24: Returning to the Society
Returning to the Society All Encompassing CSR Programme reaching to the ultimate beneficiaries Education • Five Mobile Medical Clinics in different states benefitting 500 Sanitation & individuals of underprivileged community everyday Preventive Safe Drinking Healthcare • Equipped HFCL Medi Dialysis
Slide 25: Capital Market Information
Capital Market Information 20% 0% -20% HFCL -40% Sensex -60% -80% Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Price Data (As On 31st March, 2020) Shareholding - (As on 31st March, 2020) Face value (INR) 1.0 FIIs DIIs 5% 1% Market Price (INR) 9.02 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