Slide 1: Exchange filing cover letter: Earnings Presentation
HFCL LIMITED 8, Commercial Complex, Masjid Moth, Greater Kailash – II, New Delhi – 110048, India Tel : (+91 11) 3520 9400, 3520 9500 Fax: (+91 11) 3520 9525 Web : www.hfcl.com Email : secretarial@hfcl.com HFCL/SEC/21-22 January 18, 2022 The BSE Ltd. The National Stock Exchange of India Ltd. 1st Floo
Slide 2: Investor Presentation December 2021
Investor Presentation December 2021 HFCL Limited
Slide 3: Index
Index 03 HFCL at a Glance 11 Opportunity Landscape 15 Strategic Priorities 20 Financial Drivers 27 ESG 31 Appendix
Slide 4: A leading innovation-led technology enterprise
A leading innovation-led technology enterprise HFCL at a Glance Integrated next-gen communication Key products and solutions provider Largest Market share in Optic Fibre Sectors Cable (OFC) supplies in India Innovative product 55% of Revenue offerings Public Telecommunication One of the largest prod
Slide 5: Our Product Offering
Our Product Offering HFCL at a Glance Optic Fibre / Optical Fibre Cables Armoured Optic Fibre Unarmoured Aerial Cable Micro Cable Micro module Ribbon Cable FTTH Cable Cable Cable Passive Connectivity Solutions Cable High Density Fibre Termination Joint PLC Assemblies Aerial/ FTTx Cabinets Box Closur
Slide 6: Comprehensive network solutions
Comprehensive network solutions HFCL at a Glance Public Telecommunication Solutions Comprehensive solutions for 1,50,000+ km Optical Transport Networks, Rural GSM Networks, Broadband Network Access building of wireless and optical of optical fiber Networks, Fibre to Home and In- building telecommuni
Slide 7: Marquee network projects under implementation
Marquee network projects under implementation Growth HFCL at aOpportunity Public Telecommunication Defence Communication Railway Communication Glance Rolling out backbone and backhaul Rollout of exclusive and dedicated nationwide Implementing telecom networks for Optical Fiber Cable & FTTH Network f
Slide 8: Long standing relationships with major stakeholders
Long standing relationships with major stakeholders Growth HFCL at aEnablers Glance HFCL Limited 7
Slide 9: Our Global Presence
Our Global Presence HFCL at a Glance UK Canada Ireland Germany Poland Czech Republic Hungary 30+ Countries Austria Romania Slovenia Albania USA Portugal Spain Greece Turkey Customers in Cyprus Israel UAE Jordan Nepal Mexico Qatar Egypt Saudi 2 R&D Centres of Excellence in Arabia India Bangladesh El
Slide 10: State-of-the-art facilities buoyed by capacity expansion
State-of-the-art facilities buoyed by capacity expansion Growth HFCL at aEnablers Glance 1 2 Hyderabad, Telangana* 5 Manufacturing facilities across Optic fiber – 8 mn fkm OFC – 3.6 mn fkm India with capacities of: FTTH Cable – 360k cable km/annum • 22.1 mn fkm for OFC • 8 mn fkm for optic fibre • 6
Slide 11: Dedicated unit to facilitate global 5G commercialization
Dedicated unit to facilitate global 5G commercialization Growth HFCL at aEnablers Cumulative Addressable product Portfolio under development Impact/Opportunity Market Size Opportunity Glance segment capitalization (FY 21-25) 5G Transport products • Cell Site Router Modernization requirement for USD
Slide 12: Opportunity Landscape
Opportunity Landscape HFCL Limited 11
Slide 13: The world's 2nd largest telecom market at an inflection point
The world’s 2nd largest telecom market Opportunity Landscape at an inflection point Projected spend ~USD 29 bn opportunity for HFCL driven by FY21-FY25 Optical Fiber Cable and related accessories market - Fiberized cell tower ratio to rise from current 33% to 70% by 2025 USD 6.2 bn - FTTx demand on
Slide 14: New vistas opened by modernization drive in India's defence forces
New vistas opened by modernization drive in Opportunity Landscape India’s defence forces Driven by India Strategy Electronics market projection by Ministry of Defence (USD Bn) Import reduction from 65% to 30% on the back ~USD 68 bn 8.1 of initiatives like Aatma Nirbhar Bharat, Make in 3.6 India, Def
Slide 15: Transforming the world's 4th largest rail network
Transforming the world's 4th largest rail network Opportunity Landscape Telecommunication Driven by Overall Project Costs Packages Opportunity ~USD 3.7 bn Dedicated Freight Corridors Projects with capital cost of construction – Green Field Projects with of USD 23 bn in the DPR stage & likely to ~USD
Slide 16: Strategic Priorities
Strategic Priorities HFCL Limited 15
Slide 17: HFCL's accelerated growth strategy
HFCL’s accelerated growth strategy Strategic Priorities Increasing R&D spend for new products Focusing on upcoming opportunities in Expanding manufacturing capacities Telecom, Defence and Railways • Expanding OFC & Fiber capacity at Goa & Chennai • Market opportunity of ~USD 117 bn in 5G alone from
Slide 18: Using R&D backbone for a futuristic portfolio
Using R&D backbone for a futuristic portfolio Strategic Priorities Strategic focus areas Distinctive offerings Investment in technology including Strengthen offering in key 5G solutions application sectors Strengthened by In-house R&D team Partnering with renowned Products under development players
Slide 19: Towards product-led growth
Towards product-led growth Strategic Priorities Revenue mix to shift towards margin accretive products through expanded capacity in OFC/FTTH segment and development of new telecom & defence electronics products 27% 41% Leading to Access to new geographies 59% Uniform revenue flow 73% Lower working c
Slide 20: Intensifying global footprint to capitalize on demand
Intensifying global footprint Strategic Priorities to capitalize on demand Opportunities in exports Multiple enquiries received for new products PLI making exports immensely attractive and profitable Leveraging core strengths Products at par with international New Product Design Strong relations wit
Slide 21: Financial Drivers
Financial Drivers HFCL Limited 20
Slide 22: Healthy financials to support growth
Healthy financials to support growth Financial Drivers Revenue (INR crores) Gross Profit & Gross Margin EBIDTA & EBITDA Margin PAT & PAT Margin 27 7.3 24 23 13.2 15.2 6.2 5.6 4,738 4,423 13.5 4.9 3,839 3,544 17 9.7 3,386 3,218 2,992 2,074 1,352 847 1,205 1,470 800 905 1,019 943 458 516 584 539 232 2
Slide 23: Q3FY22 Key Highlights - Consolidated
Q3FY22 Key Highlights - Consolidated Total Revenue (INR crores) EBIDTA & EBITDA Margin PAT & PAT Margin 1,277 14.32% 6.66% 6.67% 13.78% 1,215 176 174 85 81 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 EBITDA EBITDA Margin PAT PAT Margin Diluted EPS (INR) • Released 100% pledge on promoters’ shares • Ra
Slide 24: Q3FY22 Consolidated Income Statement
Q3FY22 Consolidated Income Statement Particulars (INR Cr.) Q3-FY22 Q2-FY22 Change Q-o-Q Q3-FY21 Change Y-o-Y Revenue from Operations 1,215 1,122 8.29% 1,277 -4.86% Other Income 4 4 12 Total Income 1219 1,126 8.26% 1,289 -5.43% Total Expenses 1045 953 1,113 EBITDA 174 173 0.58% 176 -1.14% EBITDA Marg
Slide 25: 9MFY22 Key Highlights - Consolidated
9MFY22 Key Highlights - Consolidated Total Revenue (INR crores) EBIDTA & EBITDA Margin PAT & PAT Margin Diluted EPS (INR) 3544 15.21% 7.28% 5.28% 1.92 13.13% 1.21 3,032 398 539 160 258 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 EBITDA EBITDA Margin PAT PAT Margin • Raised INR 600 crs vi
Slide 26: 9MFY22 Consolidated Income Statement
9MFY22 Consolidated Income Statement Particulars (INR Cr.) 9M-FY22 9M-FY21 Change Y-o-Y Revenue from Operations 3,544 3,032 16.89% Other Income 13 29 Total Income 3,557 3,061 16.20% Total Expenses 3,018 2,663 EBITDA 539 398 35.43% EBITDA Margin (%) 15.21% 13.13% 208 Bps Depreciation 56 50 Finance Co
Slide 27: Diversified Revenue Streams
Diversified Revenue Streams Financial Drivers Exports Revenue Share (%) Revenue Share by Type of Customers (%) Government Private 8 7 51 55 59 62 5 75 3 2 49 45 41 38 25 FY19 FY20 FY21 H1FY22 9MFY22 FY19 FY20 FY21 H1FY22 9MFY22 HFCL Limited 26
Slide 28: ESG
ESG HFCL Limited 27
Slide 29: Environmentally-conscious operations
Environmentally-conscious operations ESG Partnership with Sewage Treatment Replacement of Sustainable Sustainable Greentek Reman Plant (STP) of conventional packaging using manufacturing for e-waste capacity 30 KL per lighting by LED corrugated paper through initiatives management day to recycle all
Slide 30: Committed to community welfare
Committed to community welfare ESG Healthcare Education Old age care MMUs PEHAL SHEOWS Running 5 Mobile Medical Clinics at Contributing for smart classes Constructed women’s wing of different locations for providing projects in government schools old age home and developed preventive healthcare faci
Slide 31: In Summary
In Summary Investments Expansion of Continuous Network Venturing into Expanding in R&D Capacities backward Solution frontiers of and integration Capabilities technology Global Market Access Technology in OFC and all 5G, Defence across value Equipment, chain Manufacturing under Make in India Program
Slide 32: Appendix
Appendix HFCL Limited 31
Slide 33: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Appendix Particulars (INR crore) FY19 FY20 FY21 9MFY22 Revenue from Operations 4,738 3,839 4,423 3,544 Other Income 43 22 35 13 Total Income 4,781 3,861 4,458 3,557 Total Expenses 4,322 3,345 3,873 3,018 EBITDA 458 516 584 539 EBITDA Margin (%) 9.67% 13.45% 13.21
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Appendix Equities & Liabilities (INR crore) FY19 FY20 FY21 H1FY22 Assets (INR crore) FY19 FY20 FY21 H1FY22 (A) Share Capital 127 128 128 129 (A) Property plant & Equipment 202 437 443 442 (B) Capital Work in Progress 64 15 12 53 (B) Other Equity 1,314 1,540 1,788 1,944 (C)
Slide 35: Experienced management team
Experienced management team Growth Appendix Enablers Opportunity S.K. Garg V.R. Jain Jitendra Chaudhary Harsh Pagay Dr. Peter Weimann Executive Director Executive President Executive President Chief Technology Officer Group Chief Financial Officer (Growth Strategy) (Communications) (OFC) (OFC) Col B
Slide 36: Governed by an experienced Board
Governed by an experienced Board Growth Appendix Enablers Opportunity Mahendra Nahata Arvind Kharabanda Dr. R. M. Kastia Ramakrishna Eda Non-executive Director Promoter and Managing Director Non-Executive Director Non-Executive Director and Nominee - IDBI Bharat Pal Singh Surendra Singh Sirohi Dr. T
Slide 37: Share Price performance and shareholding pattern
Share Price performance and shareholding pattern Appendix Share Price Performance ( Sep-Dec’21) Listed on BSE and NSE (Scrip code BSE: 500183 & NSE: HFCL) 100 63000 Shareholding Pattern 90 62000 (as at 31st Dec 2021) 80 61000 70 60000 39.2% 59000 60 58000 50 57000 40 56000 % 30 55000 20 54000 52.2%
Slide 38: Abbreviations / Description
Abbreviations / Description Appendix Order book comprises anticipated revenues from the unexecuted portions of existing contracts Order Book (including signed contracts for which all pre-conditions to entry into force have been met & letters of acceptance issued by the customer prior to execution of
Slide 39: Thank you
Thank you Amit Agarwal Head – Investor Relations HFCL Limited Tel: +91-11-3520 9400 Email: ir@hfcl.com Anuj Sonpal Valorem Advisors Tel: +91-22-49039500 Email: hfcl@valoremadvisors.com Corporate Office 8 Commercial Complex, Masjid Moth, Greater Kailash Part 2, New Delhi, Delhi 110048 Hyderabad Offic
Slide 40: Disclaimer
Disclaimer This presentation (“Presentation”) does not constitute a prospectus, offering memorandum or an offer, or a solicitation of any offer, to purchase or sell any securities. This presentation should not be considered as a recommendation that any investor should subscribe for or purchase any s