(February 3, 2025) - HFCL Limited (BSE: 500183, NSE: HFCL)
HFCL Limited has announced its unaudited financial results for the third quarter (Q3) and nine months ended December 31, 2024, along with a major strategic update regarding its expansion in Europe.Key Financial Highlights (Standalone and Consolidated)
(Figures in ₹ Crore unless stated otherwise)Standalone Financial Performance:
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 |
|---|---|---|---|---|---|
| Revenue from Operations | 960.94 | 1,011.57 | 954.47 | 3,038.03 | 2,836.55 |
| Total Income | 981.95 | 1,024.61 | 1,000.67 | 3,083.17 | 2,913.51 |
| EBITDA | 129.69 | 125.16 | 132.41 | 403.15 | 347.84 |
| Net Profit | 78.48 | 74.88 | 77.92 | 267.34 | 194.22 |
| EPS (₹ per share) | 0.54 | 0.52 | 0.54 | 1.85 | 1.38 |
Consolidated Financial Performance:
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 |
|---|---|---|---|---|---|
| Revenue from Operations | 1,011.95 | 1,093.61 | 1,032.31 | 3,263.80 | 3,138.99 |
| Total Income | 1,031.99 | 1,107.19 | 1,079.03 | 3,307.92 | 3,216.05 |
| EBITDA | 141.22 | 139.46 | 138.24 | 437.20 | 395.72 |
| Net Profit | 72.58 | 73.33 | 82.43 | 256.56 | 228.16 |
| EPS (₹ per share) | 0.51 | 0.51 | 0.58 | 1.79 | 1.57 |
- Revenue declined QoQ due to lower turnkey contracts revenue, but YoY growth remains stable.
- EBITDA margin improved due to cost optimization and operational efficiency.
- Net profit remained resilient, reflecting strong execution despite challenges.
Segment-Wise Performance
- Telecom Products: Contributed ₹523.29 crore in Q3, showing steady demand.
- Turnkey Contracts & Services: Revenue stood at ₹437.65 crore, lower than Q2 due to project completion delays.
- International Expansion Impact: European market revenue remained stable.
Strategic Update: European Expansion on Hold
HFCL had previously announced plans to set up an Optical Fiber Cable (OFC) manufacturing facility in Poland to strengthen its European presence. However, after the European Commission’s anti-dumping duty exemptions for HFCL, the Board has decided to put the Poland project on hold and instead supply European customers directly from its India-based facilities.Corporate Announcements
- Financial Results Approved: The Board approved the unaudited financial results for Q3 FY25.
- Audit Review: Reports from M/s S. Bhandari & Co. LLP and M/s Oswal Sunil & Company confirm compliance with SEBI regulations.
- Publication & Website Updates: Results will be published in newspapers and available on www.hfcl.com.
Strategic Outlook & Market Position
- Growth in Telecom Products & Services: Continued demand in fiber optics and networking solutions.
- European Market Presence Strengthened: Despite the hold on the Poland plant, HFCL remains well-positioned with an anti-dumping duty exemption, giving it an edge over competitors.
- Cost Efficiency Initiatives: Focus on cost rationalization to improve margins.
Conclusion
HFCL delivered steady financial performance in Q3 FY25 despite industry challenges. With a prudent strategic shift in Europe and strong execution in telecom products, the company is well-positioned for sustained growth.Stock Performance & Investor Sentiment: With a solid financial performance and a strategic European advantage, HFCL's stock could attract investor interest in the coming quarters.