Key Points

HFCL Limited experienced a challenging fourth quarter with a substantial net loss of Rs 81.4 crore and a 40% revenue decline. The company, led by Mahendra Nahata, attributes its performance to reduced optical fibre cable demand and margin pressures in telecom products. Despite these setbacks, HFCL remains optimistic, backed by a robust order book and plans to expand in telecom and defence sectors. The management expects significant improvements in manufacturing capacity and new product launches in the upcoming financial year.

Key Points: HFCL Losses Deepen Amid Telecom Market Challenges

  • HFCL faces significant revenue decline in Q4 amid optical fibre market challenges
  • Strong order book of Rs 9,967 crore provides future growth potential
  • Company focusing on telecom and defence product diversification
  • Anticipating capacity utilization improvement in manufacturing plants
2 min read

HFCL clocks Rs 81.4 crore Q4 loss, revenue falls 40 pc

Mahendra Nahata's HFCL reports Q4 net loss of Rs 81.4 crore, revenue drops 40%, but remains optimistic about future growth

"The company's fibre manufacturing and cable plants will reach full utilization by July 2025 - Mahendra Nahata, MD"

Mumbai, May 22

The Mahendra Nahata-run HFCL Limited on Thursday announced that the company’s net loss for the fourth quarter (Q4 FY25) widened to Rs 81.4 crore, compared to a net profit of Rs 110 crore in the same period last fiscal (Q4 FY24).

Revenue also fell sharply by nearly 40 per cent to Rs 801 crore in Q4 FY25 from Rs 1,326 crore a year ago, according to the stock exchange filing by the Indian technology company specialised in telecom and defence equipment as well as optical fibre products.

For the full financial year, HFCL's revenue declined by approximately 9 per cent, standing at Rs 4,064.52 crore in FY25, down from Rs 4,465.05 crore in FY24.

The net profit for FY25 dropped by around 46 per cent to Rs 177.41 crore from Rs 329.81 crore in the previous financial year.

The company faced challenges such as reduced demand for optical fibre cables, margin pressures from new telecom product launches, and slower customer uptake in its EPC (engineering, procurement, and construction) business.

Despite these setbacks, HFCL remains optimistic about its future prospects, supported by a strong order book worth nearly Rs 9,967 crore as of March 31, 2025.

Managing Director Nahata highlighted that the company is focused on long-term growth, anticipating a substantial rise in revenue from the optical fibre and optical fibre cable business in FY26 due to increasing demand both domestically and internationally.

"The company’s fibre manufacturing plant and fibre optic cable plant, which operated at 45 per cent and 40 per cent capacity respectively in FY25, are expected to reach full utilisation by July 2025," Nahata mentioned.

HFCL’s telecom product lineup, including routers and 5G fixed wireless access terminals, along with upcoming products such as Wi-Fi 7 access points and high-capacity unlicensed band radios, is expected to boost revenue.

The defence segment is also set to contribute from the second quarter of the current financial year, with multiple international inquiries and domestic orders underway.

The company is developing new defence technologies, like drone detection radars, and has secured orders for tactical cables and electro-optic devices from the Indian Army.

- IANS

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Reader Comments

R
Rajesh K.
Very concerning numbers for HFCL. A 40% revenue drop in Q4 is massive! Hope their optimism about future orders isn't just wishful thinking. The telecom sector has been struggling, but their defence contracts could be the silver lining. 🇮🇳
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Priya M.
The capacity utilization numbers are worrying - only 45% for fibre plant? That explains the losses. But if they can really reach full capacity by July as claimed, maybe turnaround is possible. Their 5G products could be game-changers if priced competitively.
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Amit S.
HFCL needs to focus more on Make in India opportunities. With govt pushing for local telecom and defence manufacturing, they should leverage their expertise better. The drone detection radar project sounds promising! 🚀
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Sunita R.
As a small investor, I'm disappointed but not panicking yet. The nearly ₹10,000 crore order book gives some comfort. Hope management delivers on their promises this time. The stock has taken enough beating already!
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Vikram J.
The EPC business slowdown reflects broader infrastructure challenges. But with optical fibre demand expected to grow (BharatNet phase 2 etc), HFCL might bounce back. Their international expansion plans will be crucial - can't rely only on domestic market.
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Neha T.
Why is no one talking about the management quality? Same leadership that delivered profits last year is now reporting losses. Maybe time for fresh blood at the top? Just saying... 🤔

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