Slide 1: Stock exchange filing cover letter: Earnings' Presentation
HFCL Limited m HFCL GROUP (formerly Himachal Futuristic Communications Ltd.) 8, Commercial Complex, Masjid Moth, Greater Kailash - II, New Delhi - 110048, India Tel : (+9111) 3520 9400, 3520 9500, Fax: (+91 11) 35209525 Web : www.hfcl.com Email secretarial@hfcl.com HFCL/SEC/21-22 October 11, 2021 Th
Slide 2: HFCL Investor Presentation Sep 2021
HFCL Investor Presentation Sep 2021
Slide 3: Introducing HFCL
Introducing HFCL
Slide 4: HFCL at a glance
HFCL at a glance Key Products & Service Offerings Optical Fibre / Optic Fibre Cables Passive connectivity Leading Diversified Wide State of Global solutions Technology Product Industries the art Reach Enterprise Offerings Served Manufacturing 30+ countries facilities Telecom Equipment Strong Financi
Slide 5: Best in class manufacturing facilities
Best in class manufacturing facilities Himachal Goa Himachal Pradesh Chennai Pradesh Hosur Hyderabad Hyderabad City/ State Plant Details Capacity Hyderabad Verna, Goa OFC Manufacturing 8m fkm Goa Solan, Himachal Pradesh Telecom Equipment Manufacturing Hosur Chennai, Tamil Nadu OFC + FTTH Cable 10.5
Slide 6: Product Offerings
Product Offerings HFCL in Optic Fibre, Optical Fibre Cables Armoured Optic Fibre Unarmoured Aerial Cable Micro Cable Micro module Ribbon Cable FTTH Cable Cable Cable HFCL in Passive Connectivity Solutions Cable High Density Fibre Termination Joint PLC Assemblies Aerial/ FTTx Cabinets Box Closures Sp
Slide 7: Solution Offerings
Solution Offerings HFCL Solutions in Defence Fiber Monitoring & Management OFC and Optical Transport Network Routing Network Microwave Radio Backhaul Solution System HFCL Solutions in Telcom Comprehensive solutions for Optical Transportation Networks, Rural GSM Networks, Broadband Network building o
Slide 8: Marquee customers across segments
Marquee customers across segments Telecom Networks Railways Defence Security & Surveillance Page 7 HFCL Investor Presentation
Slide 9: Our Global Presence
Our Global Presence UK Canada Lithuania Poland Czech Republic Ukraine Switzerland Slovenia Spain Turkey Greece Cyprus Israel Egypt Qatar Saudi Mexico Arabia Oman El Sierra Leone Salvador Somalia Nigeria Zambia Zimbabwe Mauritius Australia South Africa Argentina Page 8 HFCL Investor Presentation
Slide 10: Board of Directors with Industry Veterans
Board of Directors with Industry Veterans Mahendra Nahata Arvind Kharabanda Dr. R. M. Kastia Ramakrishna Eda Promoter and Non-Executive Non-Executive Non-executive Director Managing Director Director Director and Nominee - IDBI • The pioneer of new age Telecom Sector • A member of ICAI, extensive ex
Slide 11: Management Team
Management Team S K Garg Jitendra Chaudhary Executive Director V R Jain Executive President Growth Strategy Group Chief Financial Officer Communications Sunil Kumar Kulshrestha Devender Kumar Col B B Singh Harsh Pagay Executive President Executive President Executive President Executive President Tu
Slide 12: Management Team
Management Team Shiv Kumar Singh Manoj Baid Sunil Kumar Pandey S K Wadhwa President SVP & Company Chief Information SVP – R4G Technology Head Secretary Officer Bhuvnesh Sachdeva Vivek Aggarwal Subhas Mondal G S Naidu VP VP Head COO Product Development Operations R&D – 5 G Products HTL Chennai Anil K
Slide 13: Opportunities for HFCL
Opportunities for HFCL
Slide 14: Opportunity Landscape
Opportunity Landscape OF/ OFC Telecom & Networking Defence Railways Security & Surveillance •Expansion of 4G network, • Expansion of 4G networks with • The defence budget allocation • Indian Railways have • Increased push from GOI for Evolution of 5G networks, allocation of additional spectrum incre
Slide 15: HFCL's accelerated transformation journey
HFCL’s accelerated transformation journey Increasing R&D spend to ~INR 150cr in FY22E Expanding / Modernizing manufacturing Focusing on upcoming opportunities in capabilities Telecom, Defence and Railways •Expanding OFC capacity : 18mn fkm to 22.5 mn fkm FTTH Capacity : 6L ckm to 7.2L ckm •Market op
Slide 16: Supported by our differentiating advantage
Supported by our differentiating advantage Robust Foundations Focus on hi-tech Integrated Consistent Products and Innovation Business model Performance • Rich heritage of over three • A rich haul and pipeline • Wide coverage of • 8- year Revenue decades in enabling of technological telecom value cha
Slide 17: HFCL's Key Strengths
HFCL’s Key Strengths One of the Integrated Largest Accelerated State of the art Strong Order Leading Indian Accelerated Investing in our next-gen manufacturer of R&D; enviable Manufacturing Book Company to organization-wide People with focus communication Wi-Fi portfolio of innovative Exceptional qu
Slide 18: Pillars of Growth
Pillars of Growth Accelerating Innovation >>>>>>> Profitable Growth Continued investments in R&D and new Revenue mix shift to indigenously Low gearing and higher margins age technology designed products Humongous opportunities via Make in Fast scale-up of technological India initiatives and PLI Poli
Slide 19: Coupled with Tech Advancement Strategy
Coupled with Tech Advancement Strategy Inorganically expand the Develop products for Integrate innovation core with synergistic local and global breakthroughs with acquisitions and deployments – captive manufacturing strategic investments interoperability competence Intensify and scale up Fortify th
Slide 20: And continued investments in R&D
And continued investments in R&D Empowering Innovation, Introducing New Technologies • Promote in-house R&D for NextGen products • Co-innovate with R&D houses and start-ups through partnership / acquisition route • Developing products having Global opportunities • Focussing on development of cost ef
Slide 21: The Road Ahead
The Road Ahead Develop technology as Target profitable turnkey Monetize invested capability build- a critical disruptor projects to leverage on up towards next implementation capabilities frontier including 5G and defence Make in India for the manufacturing world, expanding global reach Pursue profi
Slide 22: CSR at HFCL
CSR at HFCL
Slide 23: CSR Initiatives at HFCL
CSR Initiatives at HFCL HFCL CSR Budget (In INR Cr) 6.25 5.60 HEALTHCARE EDUCATION OLD AGE CARE 4.18 3.66 3.47 3.45 CSR at HFCL 2.86 1.25 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 Healthcare Projects Education Old Age Care Mobile Medical Clinic Projects Project PEHAL ( Smart Classes project fo
Slide 24: Key Investment Highlights
Key Investment Highlights
Slide 25: In Summary
In Summary Investments Continuous Network Venturing into Expansion of Expanding in R&D and backward Solution frontiers of Capacities integration technology Global Market Technology in OFC and all Capabilities Access 5G, Defence across value Equipment, chain Manufacturing under Make in India Program
Slide 26: Financial Snapshot
Financial Snapshot
Slide 27: Q2FY22 Key Highlights - Consolidated
Q2FY22 Key Highlights - Consolidated (In INR Mn) Total Income EBITDA & EBITDA Margins (%) PAT & PAT Margins (%) 1,733 861 11,262 5.62% 1,375 15.44% 25.99% 61.18% 533 7.67% 10,663 5.06% 13.04% Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Diluted EPS • Shareholders in the AGM held on 30th Sep’2021 approv
Slide 28: Q2FY22 Consolidated Income Statement
Q2FY22 Consolidated Income Statement Particulars (INR Mn) Q2-FY22 Q1-FY22 Change Q-o-Q Q2-FY21 Change Y-o-Y Revenue from Operations 11,221 12,069 -7.03% 10,543 6.42% Other Income 41 53 120 Total Income 11,262 12,122 -7.09% 10,663 5.62% Total Expenses 9,529 10,206 9,288 EBITDA 1,733 1,916 -9.58% 1,37
Slide 29: H1-FY22 Key Highlights - Consolidated
H1-FY22 Key Highlights - Consolidated (In INR Mn) Total Income EBITDA & EBITDA Margins (%) PAT & PAT Margins (%) 23382 3,647 1766 2,204 746 17704 15.66% 65.47% 32.07% 136.73% 7.58% 12.56% 4.25% H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 Diluted EPS • Shareholders in the AGM held on 30th Sep’2021 appr
Slide 30: H1FY22 Consolidated Income Statement
H1FY22 Consolidated Income Statement Particulars (INR Mn) H1-FY22 H1-FY21 Change Y-o-Y Revenue from Operations 23,289 17,541 32.77% Other Income 93 163 Total Income 23,382 17,704 32.07% Total Expenses 19,735 15,500 EBITDA 3,647 2,204 65.47% EBITDA Margin (%) 15.66% 12.56% 310Bps Depreciation 358 327
Slide 31: Delivering on our commitments
Delivering on our commitments (In INR Mn) Total Revenue EBITDA & EBITDA Margins (%) PAT & PAT Margins (%) 7.58% 15.7% 18% 8% 47,805 13.5% 6.18% 44,578 13.2% 16% 7% 38,610 14% 5.31% 5.57% 9.7% 4.90% 6% 32,730 9.5% 12% 2,464 5% 2,373 10% 23,382 5,844 2,323 5,162 8% 4% 4,583 6% 1,717 1,766 3,647 3% 3,0
Slide 32: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY21 FY20 FY19 FY18 Revenue from Operations 44,230 38,389 47,378 32,485 Other Income 348 221 427 245 Total Income 44,578 38,610 47,805 32,730 Total Expenses 38,734 33,448 43,222 29,654 EBITDA 5,844 5,162 4,583 3,076 EBITDA Margin (%) 13.2
Slide 33: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Assets (INR Mn) H1FY22 FY21 FY20 FY19 FY18 Equities & Liabilities (INR Mn) H1FY22 FY21 FY20 FY19 FY18 (A) Property plant & Equipment 4,416 4,434 4,369 2,022 1,657 (A) Share Capital 1,286 1,284 1,284 1,274 1,239 (B) Capital Work in Progress 530 118 151 640 17 (B)
Slide 34: Shareholder Information
Shareholder Information Shareholding Pattern) Share Information (as at 30th June 2021) September 2021 NSE Ticker HFCL Promoters 41.89% BSE Ticker 500183 FIIs 3.96% Face Value (INR) 1.0 Mutual Funds / DII 0.59% Others 53.56% Market Price (INR) 71.55 HFCL S&P BSE SENSEX 52 Week H/L (INR) 95.70/ 15.70
Slide 35: 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
Slide 36: Thank You
THANK YOU Mr. Manoj Baid / Mr. Amit Agarwal HFCL Limited Tel: +91-11-30886529 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, Adjacent to Masjid Moth Post Office, New Del