Slide 1: Exchange cover letter: Earnings' Presentation
HFCL Limited B (formerly Himachal Futuristic Communications Ltd.) 8, Commercial Complex, Masjid Moth, Greater Kailash - II, HFCL GROUP New Delhi - 110048, India Tel : (+9111) 3088 2624, 3088 2626, Fax: (+9111) 3068 9013 Web : www.hfcl.com Email secretarial@hfcl.com January 21, 2020 The BSE Ltd. The
Slide 2: HFCL Limited Investor Presentation 9M/Q3-FY2020
HFCL LIMITED INVESTOR PRESENTATION 9M/Q3-FY2020
Slide 3: Company Overview
Company Overview • HFCL Limited (formerly known as Himachal Futuristic Communications Limited) is an established leader offering State-of-the-art Manufacturing Facilities fully integrated communication network solutions. • OFC manufacturing at Verna, Goa & through subsidiary • Manufactures optical f
Slide 4: Manufacturing Facilities
Manufacturing Facilities OFC Manufacturing Verna, Goa Capacity: 8m fkm Telecom Equipment Manufacturing Solan, Himachal Pradesh OFC Manufacturing Chennai, Tamil Nadu Capacity: 10.5m fkm FRP Rods, IFGR, ARP Manufacturing Hosur, Tamil Nadu Capacity: FRP Thermal - UV 7,66,800 kms /IGFR - 22.50 MT/ARP 1,
Slide 5: 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 associated with proven track record, International experience an
Slide 6: 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 7: Portfolio of Products
Portfolio of Products OPTICAL FIBER CABLES TELECOM PRODUCTS SURVEILLANCE PRODUCTS DEFENCE PRODUCTS • Aerial Cables • Microwave Radios • Video Management System UNDER FIELD TRIAL • Armoured / Unarmoured • Telecom Power Systems • Video Analytics • Unmanned Aerial Cables • High Capacity Radio Relay • A
Slide 8: Portfolio of Network Solutions
Portfolio of Network Solutions DEFENCE NETWORK RAILWAY COMMUNICATION & SMART CITY & SURVEILLANCE TELECOM NETWORK SIGNALING NETWORK NETWORK (Metro Rail & Main Line ) • OFC Network • OFC Network • Safe City Solutions • Network & Equipment • FTTx Network Design • Intelligent Traffic • Optical Transport
Slide 9: Financial Overview 9M/Q3-FY2020
FINANCIAL OVERVIEW 9M/Q3-FY2020 8
Slide 10: 9 Months-FY20 Performance Metrics – Consolidated
9 Months -FY20 Performance Metrics – Consolidated Income & Margins 47,805 16.0% Debt and Equity 0.50 13.8% 0.44 16,137 14.0% 14,417 12.0% 0.40 12,391 0.41 0.41 9.6% 32,730 9.6% 31,929 10.0% 10,446 0.33 0.30 9.4% 8.0% 22,243 6.0% 0.20 7.2% 6,579 5,903 5.6% 5.3% 4.0% 4,582 4,083 0.10 4.9% 2.0% 0.0% -
Slide 11: Q3-FY20 Financial Highlights - Consolidated
Q3-FY20 Financial Highlights - Consolidated Q3-FY20 Financial Highlights (Consolidated): Q3-FY19 Financial Highlights (Consolidated): Total Total EBITDA EBITDA EBIDTA EBIDTA Income Income INR 1,040 Margins INR 1,314 Margins INR 8,623 INR 12,242 Mn 12.06% Mn 10.73% Mn Mn PAT PAT Diluted PAT PAT Dilut
Slide 12: Q3-FY20 Financial Highlights - Standalone
Q3-FY20 Financial Highlights - Standalone Q3-FY19 Financial Highlights (Standalone): Q3-FY20 Financial Highlights (Standalone): Total Total EBITDA EBIDTA EBIDTA Income EBITDA Income Margins INR 1,068 Margins INR 8,210 INR 988 Mn INR 11,055 12.03% Mn 9.66% Mn Mn PAT PAT Diluted PAT PAT Diluted INR 49
Slide 13: 9 Months-FY20 Financial Highlights - Consolidated
9 Months-FY20 Financial Highlights - Consolidated 9 Month-FY20 Financial Highlights 9 Months-FY19 Financial Highlights (Consolidated): (Consolidated): Total Total EBITDA EBITDA EBIDTA EBIDTA Income Income INR 4,399 Margins INR 3,227 Margins INR 31,929 INR 35,337 Mn 13.78% Mn 9.13% Mn Mn PAT PAT Dilu
Slide 14: 9 Months-FY20 Financial Highlights - Standalone
9 Months-FY20 Financial Highlights - Standalone 9 Months-FY20 Financial Highlights (Standalone): 9 Months-FY19 Financial Highlights (Standalone): Total Total EBITDA EBIDTA EBITDA EBIDTA Income Income INR 3,934 Margins INR 2,786 Margins INR 29,514 INR 32,800 Mn 13.33% Mn 8.49 % Mn Mn PAT PAT Diluted
Slide 15: Q3-FY20 Consolidated Income Statement (IND-AS)
Q3-FY20 Consolidated Income Statement (IND-AS) PARTICULARS (INR Mn) Q3-FY20 Q2-FY20 Q-o-Q Q3-FY19 Y-o-Y Revenue from Operations 8,535 9,795 -12.9% 12,209 -30.1% Other Income 88 38 131.6% 33 166.7% Total Income 8,623 9,833 -12.3% 12,242 -29.6% Total Expenses 7,583 8,415 -9.9% 10,928 -30.6% EBITDA 1,0
Slide 16: Q3-FY20 Standalone Income Statement (IND-AS)
Q3-FY20 Standalone Income Statement (IND-AS) PARTICULARS (INR Mn) Q3-FY20 Q1-FY20 Q-o-Q Q3-FY19 Y-o-Y Revenue from Operations 8,129 9,231 -11.9% 11,037 -26.3% Other Income 81 35 131.4% 18 350.0% Total Income 8,210 9,266 -11.4% 11,055 -25.7% Total Expenses 7,222 7,962 -9.3% 9,987 -27.7% EBITDA 988 1,
Slide 17: 9 Months-FY20 Consolidated Income Statement (IND-AS)
9 Months-FY20 Consolidated Income Statement (IND-AS) PARTICULARS (INR Mn) 9 Months-FY20 9 Months -FY19 Y-o-Y Revenue from Operations 31,757 35,223 -9.8% Other Income 172 114 50.9% Total Income 31,929 35,337 -9.6% Total Expenses 27,530 32,110 -14.3% EBITDA 4,399 3,227 36.3% EBITDA Margin (%) 13.78% 9
Slide 18: 9 Months-FY20 Standalone Income Statement (IND-AS)
9 Months-FY20 Standalone Income Statement (IND-AS) PARTICULARS (INR Mn) 9 Months-FY20 9 Months-FY19 Y-o-Y Revenue from Operations 29,365 32,715 -10.2% Other Income 149 85 75.3% Total Income 29,514 32,800 -10.0% Total Expenses 25,580 30,014 -14.8% EBITDA 3,934 2,786 41.2% EBITDA Margin (%) 13.33% 8.4
Slide 19: 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 186 183 458 214 245 427 Total Income 20,854 30,985 44,120 22,243 32,730 47,805 Total Expenses 18,860 28,159 4
Slide 20: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet EQUITIES & LIABILITIES (INR Mn) FY18 FY19 H1-FY20 ASSETS (INR Mn) FY18 FY19 H1-FY20 (A) Share Capital 1,239 1,274 1,284 (A) Property plant & Equipment 1,657 2,022 2,252 (B) Other Equity 10,548 13,143 14,853 (B) Capital Work in Progress 17 640 2031 (C) Goodwill 2
Slide 21: Historical Standalone Balance Sheet
Historical Standalone Balance Sheet EQUITIES & LIABILITIES (INR Mn) FY18 FY19 H1-FY20 ASSETS (INR Mn) FY18 FY19 H1-FY20 (A) Share Capital 1,239 1,274 1,284 (A) Property plant & Equipment 1,074 1,076 1,316 (B) Other Equity 10,921 13,162 14,642 (B) Capital Work in Progress 14 622 1793 Total -Sharehold
Slide 22: Current Order Book of ~INR 8,621 Cr provides visibility
Current Order Book of ~INR 8,621 Cr provides visibility Total Order book of ~INR 8,621 Cr as on 31 Dec, 2019 Order Book To Revenue (INR Cr) 11,350 • Prestigious orders 8,700 8,621 spread across all business verticals- telecom, defence, 4,738 railways, OFC Turnkey & 3,249 3,000 3,176 manufacturing, S
Slide 23: Industry Opportunities
Industry Opportunities GoI’s push in Huge Fiberizing fast-tracking its Smart City Infrastructure 70% of the towers FTTH shall play a mission is yielding results expenditure will require an estimated with SPVs getting formed significant role in is underway in India 600,000 fkm, at an in most cities b
Slide 24: Status of Shares Pledged by Promoters
Status of Shares Pledged by Promoters Promoters’ holding is pledged with the Company’s Banks for the credit facilities as collateral (No loans have been taken against Shares): • 49% of Promoters’ Holding stands pledged with group of Lenders out of which : • 75% is towards outstanding Working Capital
Slide 25: 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 26: Capital Market Information
0% 5% -25% -20% -15% -10% 10% 15% 20% -5% 01/01/2019 04/01/2019 09/01/2019 14/01/2019 17/01/2019 22/01/2019 25/01/2019 30/01/2019 04/02/2019 07/02/2019 12/02/2019 Face value (INR) 15/02/2019 Market Price (INR) 52 Week H/L (INR) 20/02/2019 25/02/2019 Market Cap (INR Mn) 28/02/2019 06/03/2019 11/03/20
Slide 27: 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 28: 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