Hfcl Limited · NSE:HFCL
Hfcl — H1 FY2021 Earnings Presentation
27 slides from Hfcl's earnings presentation, Oct 13, 2020
Slide 1: Exchange filing cover letter: Earnings Presentation
HFCL Limited (formerly Himachal Futuristic Communications Ltd.) 8, Commercial Complex, Masjid Moth, Greater Kailash • II, New Delhi • 110048, India Tel : (+9111) 3520 9400, 3520 9500, Fax: (+9111) 35209525 Web : www.hfcl.com Email secretarial@hfcl.com October 13, 2020 The BSE Ltd. The National Stock
Slide 2: Earnings Presentation H1/Q2-FY21
EARNINGS PRESENTATION H1/Q2-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 • 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 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 Optical Fiber Manufacturing OFC Manufacturing Verna, Goa Hyderabad, Telangana Chennai, Tamil Nadu Capacity: 8m fkm Capacity: Optical fiber - 6.4m fkm Capacity: 10.5m fkm FRP Rods, IFGR, ARP Manufacturing Hosur, Tamil Nadu Telecom Equipment Manufacturing Cap
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 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
Key Customers G TATA e "f) airtel vodafone e ANATEL .q BSNL s TCILll A Govt. of India Enterprise G) IP~tl-~~51 ~ CHINA RAILWAY e --------- --- - - - - India nOll ...d~b.. - - - - STC a,pgn=Jt w..Jt.c:i..Jt @ Globe Bharat Petroleum -- -==- Qict"lfa.ls Ministry of Interior Kingdom of Saudi Arabia @(Rh
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 7,447 Cr provides visibility
Current Order Book of ~INR 7,447 Cr provides visibility Order Book To Revenue (INR Cr) 11,350 8,700 8,409 7,447 4,738 3,839 3,000 3,249 2,203 1,754 FY17 FY18 FY19 FY20 H1FY21 Revenue Order Book Total Order book of ~INR 7,447 Cr as on 30th September, 2020 Prestigious orders for supply and ~2 times O&
Slide 12: Industry Opportunities
Industry Opportunities TELECOM RAILWAYS • 5G, M2M, IoT shall require extensive fiberisation • Legacy Signaling and Telecom Systems need an making the networks more denser and deeper where overhaul about 70%-80% towers shall be required to be • New rail lines shall also deploy next generation fiberis
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 alongwith Invested R&D Houses an
Slide 15: Financial Overview H1/Q2-FY21
Financial Overview H1/Q2-FY21
Slide 16: Q2-FY21 Key Highlights - Consolidated
Q2-FY21 Key Highlights - Consolidated • Operations and project execution are gradually Q2-FY21 Financial Highlights (Consolidated) returning back to Pre-Covid levels • Capacity utilization increased at all production Total Income EBITDA EBIDTA Margins Facilities 13.02% INR 10,585 Mn INR 1,378 Mn • S
Slide 17: Q2-FY21 Consolidated Income Statement
Q2-FY21 Consolidated Income Statement Particulars (INR Mn) Q2-FY21 Q1-FY21 Change Q-o-Q Q2-FY20 Change Y-o-Y Revenue from Operations 10,543 6,998 50.7% 9,795 7.6% Other Income 42 39 7.7% 38 10.5% Total Income 10,585 7,037 50.4% 9,833 7.6% Total Expenses 9,207 6,204 48.4% 8,415 9.4% EBITDA 1,378 833
Slide 18: H1-FY21 Key Highlights - Consolidated
H1-FY21 Key Highlights - Consolidated • Q1 was quarter marked with production and execution side constraints , however, operations and project execution are H1-FY21 Financial Highlights (Consolidated) gradually returning back to Pre-Covid levels with continuously increasing capacity utilization Tota
Slide 19: H1-FY21 Consolidated Income Statement
H1-FY21 Consolidated Income Statement Particulars (INR Mn) H1-FY21 H1-FY20 Change Y-o-Y Revenue from Operations 17,541 23,222 (24.5)% Other Income 82 84 (2.4)% Total Income 17,623 23,306 (24.4)% Total Expenses 15,412 19,947 (22.7)% EBITDA 2,211 3,359 (34.2)% EBITDA Margin (%) 12.55% 14.41% (186) Bps
Slide 20: H1-FY21 Performance Metrics – Consolidated
H1-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 32,730 3,076 2,204 22,243 2,143 2,211 17,623 1,242 1,047 FY17 FY18 FY19 FY20 H1FY21 FY17 FY18 FY19 FY20 H1FY21 FY17 FY18 FY19 FY20 H1FY21 PAT (INR Mn) EBITDA Margin (%)
Slide 21: Financial Goals
Financial Goals Increase profits in absolute value • Own technology products to deliver good returns • Choose high margin orders • Cost efficiency measure to continue Continue with Low Gearing & Grow with Increased Returns Effective Working Capital Management & • Contain the gearing at reasonably lo
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) Capital Work in Progress 253 151 640 17 (B) Other Equity 16,164 15,
Slide 24: 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 1,193 14,317 12,169 214 10,461 5,903 7,116 -1,163 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 21.5
Slide 25: 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 26: Capital Market Information
Capital Market Information 20% 10% 0% -10% -20% HFCL -30% Sensex -40% -50% -60% Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Price Data (As On 30th September, 2020) Shareholding - (As on 30th September 2020) Face value (INR) 1.0 FIIs Market Price (INR) 15.85 2%
Slide 27: 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