Hfcl Limited · NSE:HFCL
Hfcl — Investor Presentation (June 2019)
45 slides from Hfcl's investor presentation, Jun 10, 2019
Slide 1: Exchange cover letter submitting investor presentation
HIMACHAL FUTURISTIC COMMUNICATIONS LTD. '| 8, Commercial Complex, Masjid Moth, YS Greater Kailash - II, New Delhi - 110048, India HFELGROUL Tel: (+91 11) 3088 2624, 3088 2626 Fax: (+91 11) 3068 9013 An Environment conscious company certified to | Web : www.hfcl.com 2 1SO 14001 Standard Email : secre
Slide 2: Himachal Futuristic Communications Ltd. Investor Presentation June 2019
HIMACHAL FUTURISTIC COMMUNICATIONS LTD. INVESTOR PRESENTATION JUNE 2019
Slide 3: Company Overview
Company Overview • Himachal Futuristic uturistic Communications Ltd. (HFCL) is an State-of-the-art Manufacturing Facilities established leader offering fully integrated communication • OFC manufacturing at Verna, Goa & through subsidiary at Chennai, network solutions. Tamil Nadu • Manufactures optic
Slide 4: Board Of Directors
Board Of Directors Mahendra Pratap Shukla - (Non-Executive Chairman) Ranjeet Anand Kumar Soni (Non-Executive Director -(Nominee • An Electrical Engineer with vast experience in Telecom Industry – IDBI) • Ex-Chairman & MD of TCIL & MTNL • Masters In Mathematics & JAIIB Certification From Indian • Awa
Slide 5: Leadership Team
Leadership Team Board of Directors Managing Director Mahendra Nahata SBU Heads Business & Technology Heads Functional Heads Jitendra Chaudhary Ashwani Gupta V. R. Jain Telecom Executive Director Finance Col. B. B. Singh S. K. Garg Vibhas Joshi Defence Comm. Services Shiv Kumar Singh Supply Chain Man
Slide 6: Key Milestones
Key Milestones Set up : -Railways Communication, Smart City, Defence communication as new Setup Turnkey business verticals. Wireline Division Manufacturing Forayed into -Defence equipment Facility providing fully business vertical with Set up at Solan, integrated Capacity of Goa Capacity of Goa 1987
Slide 7: Manufacturing Facilities
Manufacturing Facilities OFC Manufacturing Verna, Goa Capacity: 8m fkm Telecom Equipment Manufacturing Solan, Himachal Pradesh OFC Manufacturing Chennai, Tamil Nadu Capacity: 7m fkm Planned expansion : 3.5m fkm FRP Rods, IFGR, ARP Manufacturing Hosur, Tamil Nadu Capacity: FRP Thermal - UV 7,66,800 k
Slide 8: Key Customers Globally
Key Customers Globally BSNL oct @ “A S IndianOil ALSTOM vc NOKIA = A naawean BTS airtel etisalat (F) PERRE AA eet @ CHINA RAILWAY Ministry of Interior Kingdom of Saud! Arabia a2 Cy Reed Miathy Seaeny @PLDT Mic TELECOM ANATEL & Maroc yp, Telecom Te BPaiove ga Mobily oman See — oro iOS] M4, MERALCO p6
Slide 9: 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 10: Certifications
Certifications Quality Management System Environmental Management • TL9000 R6.1 / ISO System Technical 9001:2015 • ISO 14001:2015 Specification RDSO - Type Product Evaluation Approval Certificate Certificate Certificate CPR (EU regulation) CE Certification in HFCL is the first OFC Certificate - Cons
Slide 11: Products and Solutions Portfolio
PRODUCTS AND SOLUTIONS PORTFOLIO 10
Slide 12: An Agile Portfolio of Products & Solutions
An Agile Portfolio of Products & Solutions OPTICAL FIBER CABLE, TELECOM PRODUCTS SURVEILLANCE DEFENCE COMMUNICATION OPTIC- FIBER & OFC PRODUCTS PRODUCTS NETWORK SOLUTIONS ACCESSORIES • GSM BSS Equipment • Video Management • Unmanned Aerial • Telecom Network Solutions • Aerial Cables • Microwave Radi
Slide 13: Products
PRODUCTS 12
Slide 14: Optical Fiber Cables
Optical Fiber Cables Conventional cables • Armoured Cable • Aerial Cables- ADSS and Figure-8 • Ribbon Cables FTTH Cable Applications • Indoor/Outdoor cables • Micro-duct / Mini-cables / Air Blown Cables Long Distance Network • FTTH Cables • In-Premises Cables Intra-city Network FTTH Network Specialt
Slide 15: Manufacturing Process
Manufacturing Process Backward Integration – Fiber Manufacturing Optical Fiber Cable Manufacturing Preform Feeding Sheathing Induction Furnace Secondary Coating HDPE or A loose tube Nylon casing is shaped on is shaped over Cooling Tube the stranded one or more Ribbon primary unit / loose individual
Slide 16: Telecom Products
Telecom Products Unlicensed Band Radio Provide high speed point-to-point and point-to multi-point connectivity solution in unlicensed Microwave Radio Equipment ISM bands. Integrated high bandwidth radio unit with centralized network management Power Solution Equipment Bridgeless, dynamic and digital
Slide 17: Surveillance Products
Surveillance Products VMS Video Management System • Focused on Smart City Solutions, City Surveillance, Traffic Enforcement, Critical PMS Infrastructure Protection, Parking Management VA System Video Analytics Industrial & Government Projects • Company believes in developing HTMS ANPR Innovative Sol
Slide 18: Defence Products
Defence Products The nascent steps that HFCL started taking in Defence manufacturing a couple of years ago, under the ‘Make in Unmanned Aerial Vehicles Electronic Fuses for all types India’ initiative, have Electro Optical Devices (Night (UAVs) of ammunition Vision Devices) been growing steadily in
Slide 19: Solutions
SYS SOLUTIONS 18
Slide 20: Telecom Network Solutions
Telecom Network Solutions OFC Network • OFC Survey & Network Design • fiber Deployment • Site and Infrastructure Built-up WIFI : Providing complete eco system for WIFI • Installation & commissioning services • Operations & Maintenance • Design and Implementation of WIFI solutions • Offering entire r
Slide 21: Defence Network Solutions
Defence Network Solutions Fiber Network Rollout of dedicated optical fiber network for armed IPMPLS Network (Routing & Switching) forces Converged Nationwide IP/MPLS Backbone Network with 219 Access Network Locations and Integrated IMS based Optical Transport Network Communication Solution on Turnke
Slide 22: Railway Communication Network Solutions
Railway Communication Network Solutions • In order to leverage its telecom product and EPC capabilities in adjacent space, Company has ventured into railways business • HFCL offers integrated solutions crafting a combination of its own products and those others from leading manufacturing OEM partner
Slide 23: Smart City & Surveillance Solutions
Smart City & Surveillance Solutions Smart City Projects executed by HFCL HFCL’s offerings in the Safe & Smart city domain include key core solutions like Communication / IT / Telecom infrastructure, data centre, disaster recovery and Ludhiana Safe City management, security, surveillance, traffic man
Slide 24: Financial Overview
FINANCIAL OVERVIEW 23
Slide 25: Key Highlights – Consolidated Financials
Key Highlights – Consolidated Financials PAT up Completely EBITDA CAGR of from INR 1,237 Mn Transformed 46% from FY17 to in FY17 to on Growth INR 2,323 Mn FY19 Trajectory in FY19 Credit rating has EBITDA at significantly INR 4,582 Mn 37% CAGR improved from D in 2012 to A- with stable outlook Revenue
Slide 26: Performance Metrics
Performance Metrics Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn) 4,582 47,848 3,902 4,750 3,508 3,076 32,730 2,683 3,239 27,709 29,072 2,143 21,717 22,243 1,678 2,323 1,563 1,237 1,717 7,261 462 564 3,045 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 -668 FY12 FY13
Slide 27: Debt Equity & Shareholders Return
Debt Equity & Shareholders Return Debt (INR Mn) Debt and Equity 0.60 22,112 14,417 0.44 12,116 0.42 0.50 0.40 10,446 13,051 9,206 0.41 7,584 0.34 5,903 5,903 0.20 4,5304,116 3,795 4,6374,5824,077 3,2063,174 4,637 4,582 4,083 3,174 - FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY
Slide 28: Consolidated Income Statement
Consolidated Income Statement PARTICULARS (INR Mn) FY17 FY18 FY19 Revenue from Operations 22,029 32,485 47,378 Other Income 214 264 470 Total Income 22,243 32,730 47,848 Total Expenses 20,100 29,654 43,266 EBITDA 2,143 3,076 4,582 EBITDA Margin 9.63% 9.40% 9.58% Depreciation 218 232 270 Finance Cost
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITIES & LIABILITIES (INR Mn) FY17 FY18 FY19 ASSETS (INR Mn) FY17 FY18 FY19 (A) Share Capital 1,239 1,239 1,274 (A) Property plant & Equipment 1,582 1,657 2,022 (B) Other Equity 8,402 10,548 13,142 (B) Capital Work in Progress 17 17 640 (C) Goodwill 258 259 259 Non Contr
Slide 30: Standalone Income Statement
Standalone Income Statement PARTICULARS (INR Mn) FY17 FY18 FY19 Revenue from Operations 20,668 30,802 43,662 Other Income 186 183 480 Total Income 20,854 30,985 44,142 Total Expenses 18,860 28,159 40,281 EBITDA 1,994 2,826 3,861 EBITDA Margin 9.56% 9.12% 8.75% Depreciation 157 163 175 Finance Cost 5
Slide 31: Standalone Balance Sheet
Standalone Balance Sheet EQUITIES & LIABILITIES (INR Mn) FY17 FY18 FY19 ASSETS (INR Mn) FY17 FY18 FY19 (A) Share Capital 1,239 1,239 1,274 (A) Property plant & Equipment 1,068 1,074 1,076 (B) Other Equity 9,196 10,921 13,162 (B) Capital Work in Progress 14 14 622 (C) Other Intangible Assets 41 30 93
Slide 32: Strong Order Book of ~INR 11,350 Cr provides visibility
Strong Order Book of ~INR 11,350 Cr provides visibility Total Order book of ~INR 11,350 Cr Order Book To Revenue (INR Cr)* 11,350 # • Prestigious orders 8,700 spread across all business verticals- telecom, defence, 4,366 railways, OFC Turnkey & 3,000 3,080 manufacturing, Smart 2,067 Cities and priva
Slide 33: Industry Overview
SS INDUSTRY OVERVIEW 32
Slide 34: Telecom - Mature Eco-system Is Driving Pan India Growth
Telecom - Mature Eco-system Is Driving Pan India Growth Government Initiatives 4G, 5G, Fiberisation Encouraging investment in high-capacity 4G is the key driver behind increasing users’ 4G appetite towards data consumption. Aggressive 4G networks and accelerate public access to Internet 5G expansion
Slide 35: Industry Growth
Industry Growth Internet Subscribers (Mn) 3G/4G device base (Mn) 900 530 432 604 379 494 310 335 422 343 218 128 47 Mar-16 Mar-17 Mar-18 Dec-18 Dec -22 2015 2016 2017 2018 3G 4G Internet Traffic Per month (Exabyte) Internet Speed (Mbps) 31.2 15.5 9.5 2.1 5.1 6.6 0.9 1.2 2015 2016 2017 2022P 2015 201
Slide 36: Data Consumption To Leap Frog – Doubling YoY
Data Consumption To Leap Frog – Doubling YoY Data Usage Per Month, Pentabyte (Pb) Per Subs Data Usage / Price per GB (INR) 4,867 226.0 9.43 4,472 2,360 5.59 966 76.0 128 1,930 398 395 0.79 19.0 82 823 2.69 11.0 103 32 46 40 2015 0 2016 2017 2018 2015 2016 2017 2018 2G 3G 4G Total Data Usage per Mont
Slide 37: National Digital Communications Policy, 2018
National Digital Communications Policy, 2018 Target 2022 Connect India: By Creating a Robust Digital Communication Infrastructure 25 Mbps Fixed Broadband 50 Mbps • Provide Universal broadband connectivity at 50 Mbps to every citizen • Provide 1 Gbps connectivity to all Gram Panchayats of India by 20
Slide 38: Smart Cities & Surveillance
Smart Cities & Surveillance Role of ICT in Smart City • Ninety-nine cities have been selected under Smart Cities Intelligent and Project at an outlay of INR 2.04 lakh Cr efficient Cost and energy use of savings Planning resources • High speed Communication technology of ICT shall play a key role to
Slide 39: Defence
Defence • India is the largest importer of defence equipment in the world where the imports account for nearly 65% of the country’s military requirement. • India has spent USD 100 Bn in last one decade to buy 65 per cent of its defence equipment therefore, the government has set a goal to reverse th
Slide 40: Railways
Railways • India is one of the largest rail networks in the world and is expanding like never before with FY18 revenues at USD 27.71 Bn (CAGR of ~10% during FY07-FY18) • Legacy Signaling and Telecom Systems are integral parts of Railways and need an overhaul and upgradation to strengthen speed and s
Slide 41: Massive US$ 100 Bn+ Industry Opportunities
Massive US$ 100 Bn+ Industry Opportunities Fiberizing 70% of the towers FTTH shall play a Government Huge will require an estimated significant role in and Private Operators Infrastructure 600,000 fkm, at an broadband vision. Shall continue expenditure investment of INR 560 Bn Fixed broadband to ris
Slide 42: Value Proposition
Value Proposition Agile Portfolio of Products and Leadership Solutions Established leader in providing fully integrated solutions in building Agile portfolio of products and solutions backed by excellent Communication Networks for Telecom, Defence, Railways and other sectors manufacturing facilities
Slide 43: Capital Market Information
Capital Market Information Share Price Data – FY19 40% 30% 20% 10% 0% -10% -20% -30% -40% Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 HFCL Sensex PRICE DATA (AS ON 31st March, 2019) Shareholding - (As on 31st March, 2019) Face value (INR) 1.00 Market Price (IN
Slide 44: 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 45: Disclaimer
Disclaimer Himachal Futuristic Communications 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 opinion
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