{"id":146101,"date":"2023-05-15T03:38:20","date_gmt":"2023-05-15T07:38:20","guid":{"rendered":"https:\/\/44.250.171.167\/?p=146101"},"modified":"2023-05-15T03:38:22","modified_gmt":"2023-05-15T07:38:22","slug":"hfcl-limited-q4-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/hfcl-limited-q4-fy23-earnings-conference-call-insights\/","title":{"rendered":"HFCL Limited Q4 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from HFCL Limited (HFCL) Q4 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>[00:06:33] HFCL said it collaborated with Microsoft to launch a Private 5G Solution for enterprises, which can offer numerous benefits to the manufacturing sector and enable enterprises in its Industry 4.0.<\/li>\n<\/ul>\n<ul>\n<li>[00:08:54] HFCL said it aims to expand its optical fiber capacity to 25 million fiber kilometers by 2Q25 and increase its cable production capacity from 25 million to 35 million fiber kilometers to capture a bigger share of the growing optical fiber cable market valued at $250 billion worldwide and $10 billion domestically during 2023-2028.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:17:13] Balasubramanian from Arihant Capital enquired what is the expected telecom revenue share and margin for FY25 with the launch of 7-8 new 5G products. Mahendra Nahata MD said HFCL is targeting a revenue of INR800-1,000 crores in FY25 from new products that are currently in development. The company expects to achieve higher margins on these products as they are designed and manufactured in-house.<\/li>\n<\/ul>\n<ul>\n<li>[00:18:32] Balasubramanian from Arihant Capital asked about reason for turnkey contracts seeing less than 5% margin. Mahendra Nahata MD replied that EPC contracts had lower margins in 4Q23, but overall EBITDA margins range between 8-12% and have increased to 14-15% with more product business revenue. Margins will rise further with backward integration and indigenous products. Overall margins are stable and expected to increase.<\/li>\n<\/ul>\n<ul>\n<li>[00:20:24] Balasubramanian from Arihant Capital enquired if there are additional tenders or projects after winning Surat Metro Rail project Phase 1, and if HFCL is comfortable executing railway projects. Mahendra Nahata MD said HFCL is a leading provider of railway communications solutions. HFCL is confident of remaining in this business and are actively bidding on new contracts. The company is currently working on direct products for Kanpur and Agra Metro, and anticipate a good order position from other metro contracts.<\/li>\n<\/ul>\n<ul>\n<li>[00:21:39] Balasubramanian from Arihant Capital enquired about margins of railway projects. Mahendra Nahata MD replied that revenue from railway projects comes late because telecom is the last to be done. Contracts are awarded when the metro is planned, and civil and electrical work is done before telecom. Margins are similar to turnkey contracts with average margins of 14-15%.<\/li>\n<\/ul>\n<ul>\n<li>[00:22:48] Sanjay Shah from KSA Securities asked about the outlook for the global OFC market, and how does it impact HFCL&#8217;s export share. Mahendra Nahata MD said the global demand for OFC has increased due to the rise of remote work and the need for high-speed data after the pandemic. HFCL plans to increase its OFC capacity to meet demand and expects an increase in profits of INR150 crores per year.<\/li>\n<\/ul>\n<ul>\n<li>[00:28:37] Jigar Valia from OHM Group queried if HFCL is not seeing any recessions in markets like Europe and the UK that may affect exports, and if exports will remain robust for FY24 and FY25. Mahendra Nahata MD said HFCL does not predict a recession, but anticipates stagnation in demand. Despite increased capacities worldwide, the company aims to reach its target of INR1,300-1,500 crores in FY24 by expanding geographically and entering new markets.<\/li>\n<\/ul>\n<ul>\n<li>[00:34:35] Saral Seth at Indsec Securities asked how is HFCL likely to achieve higher revenue through its R&amp;D initiatives and the role it\u2019d play in increasing revenue. Mahendra Nahata MD said R&amp;D is essential for revenue and profitability growth. HFCL is focusing on designing telecom and networking products and has partnerships with companies like Wipro, VVDN, and Capgemini for R&amp;D contracts. New products will bring in additional revenue of INR800-1,000 crores by 2025. R&amp;D is a significant factor in increasing revenue and profitability.<\/li>\n<\/ul>\n<ul>\n<li>[00:38:31] Saral Seth at Indsec Securities enquired about the expected blended FY24 margin outlook and the steps taken to maintain the current profitability level. Mahendra Nahata MD said HFCL has taken several steps to increase revenue and profitability, such as increased investment in R&amp;D, increased revenue from private operators, and increased exports. These steps have resulted in a significant increase in revenue and profitability for HFCL and the company is confident that it will be sustainable in the long term.<\/li>\n<\/ul>\n<ul>\n<li>[00:41:11] Saral Seth of Indsec Securities asked about the capacity utilization on a blended basis for 4Q23 and FY23. Mahendra Nahata MD replied that capacity utilization and fiber optic cable is almost 100%, all factories are working 24\/7.<\/li>\n<\/ul>\n<ul>\n<li>[00:41:51] Sahil Sanghvi from Monarch Networth Capital asked about the breakdown of the INR7,000 crores order book between product-based and EPC orders, and what is the geographical distribution of export and domestic orders. Mahendra Nahata MD replied that product orders are received on a regular basis, unlike EPC contracts which come in bulk. In terms of the current order book, about 70% of orders are for EPC contracts and 30% for product contracts.<\/li>\n<\/ul>\n<ul>\n<li>[00:45:23] Hemang Kotadia with Anvil asked when will the defense product revenue contribution rise significantly and in which year. Mahendra Nahata MD clarified that HFCL is investing in defense products, such as night vision sites, electronic fuses, and upgradation of BMP 2. The company expects to start generating revenue from these products in 2024-2025. The revenue is expected to be sustainable in the long term.<\/li>\n<\/ul>\n<ul>\n<li>[00:51:42] Dipesh Sancheti from Manya Finance asked if HFCL has applied to the government for any anti-dumping duty for optical fibers. Mahendra Nahata MD said HFCL is neutral to the recommended anti-dumping duty as it produces its own fiber and it will not impact HFCL business. HFCL added that smaller players who don&#8217;t produce their own fiber may face challenges due to higher prices affecting their competitiveness.<\/li>\n<\/ul>\n<ul>\n<li>[01:01:40] Hardik Vyas at Economic Times asked about OST pricing, if it has gone up due to the demand increasing. Mahendra Nahata MD replied that the fiber realization per fiber kilometer has increased by around 10%, from INR1,100 to INR1,234 per fiber kilometer in 4Q23, but it depends on various factors like product mix and export volume.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from HFCL Limited (HFCL) Q4 FY23 Earnings Concall Management Update: [00:06:33] HFCL said it collaborated with Microsoft to launch a Private 5G Solution for enterprises, which can offer numerous benefits to the manufacturing sector and enable enterprises in its Industry 4.0. [00:08:54] HFCL said it aims to expand its optical fiber capacity to [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"HFCL Limited Q4 FY23 Earnings Conference Call Insights #HFCL #Q4 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[10169,8532,316,8234],"class_list":["post-146101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-earnings","tag-technology","tag-telecom","tag-telecom-equipment"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":171712,"url":"https:\/\/alphastreet.com\/india\/hfcl-q2-fy26-earnings-results\/","url_meta":{"origin":146101,"position":0},"title":"HFCL Q2 FY26 Earnings Results","author":"Divyansh_Kasana","date":"October 22, 2025","format":false,"excerpt":"HFCL Ltd (Himachal Futuristic Communications Limited) is a diversified telecom infrastructure company engaged in the development of telecom networks, system integration, and manufacturing of high-end telecom equipment, optical fiber, and optical fiber cables (OFC). It also operates in defence electronics, contributing to India\u2019s strategic and digital connectivity goals. Q2 FY26\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Q2 FY26","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HF.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HF.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HF.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HF.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HF.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HF.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":128747,"url":"https:\/\/alphastreet.com\/india\/hfcl-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":146101,"position":1},"title":"HFCL Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 2, 2022","format":false,"excerpt":"https:\/\/youtu.be\/IZboIxFEbjc Key highlights from HFCL Limited (HFCL) Q4 FY22 Earnings Concall Q&A Highlights: Sanjay Shah of KSA Securities asked about the opportunities for the company in FY23 and FY24. Mahendra Nahata MD replied that FY23 comes up with multiple opportunities in India and worldwide. With 5G coming probably in June,\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":145462,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-hfcl-limited-for-q4-fy23\/","url_meta":{"origin":146101,"position":2},"title":"Earnings Summary Of HFCL Limited For Q4 FY23","author":"Hardik Bhandare","date":"May 9, 2023","format":false,"excerpt":"HFCL Limited is an Indian telecommunication equipment company headquartered in Noida, Uttar Pradesh. The company was founded in 1987 and has since grown into a leading player in the telecommunications industry. HFCL Limited designs, manufactures, and sells a range of telecommunications equipment, including optical fiber cables, optical transport equipment, and\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-9.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-9.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-9.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-9.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-9.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-9.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":179427,"url":"https:\/\/alphastreet.com\/india\/hfcl-delivers-steady-q3-fy26-results-amid-growth-initiatives\/","url_meta":{"origin":146101,"position":3},"title":"HFCL Delivers Steady Q3 FY26 Results Amid Growth Initiatives","author":"Staff Correspondent","date":"February 3, 2026","format":false,"excerpt":"HFCL Limited (NSE: HFCL) reported steady Q3 FY26 performance. The telecom and defence technology firm saw strong export momentum. Its order book hit \u20b911,125 crore. Revenue mix improved with higher product sales. Standalone Financial Performance Standalone revenue reached \u20b91223.89 crore. EBITDA was \u20b9170.61 crore. PBT stood at \u20b978.94 crore. PAT\u2026","rel":"","context":"In &quot;Analysis&quot;","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":126439,"url":"https:\/\/alphastreet.com\/india\/hfcl-limited-q3-fy22-earnings-conference-call-summary\/","url_meta":{"origin":146101,"position":4},"title":"HFCL Limited Q3 FY22 Earnings Conference Call Summary","author":"Praveen","date":"January 19, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=m78Oh4o-034 Key highlights from HFCL Limited (HFCL) Q3 FY22 Earnings Concall Management Update: HFCL said the company secured purchase orders of more than INR530 crores along with its subsidiary HTL Limited for the supply of optical fiber cables during the quarter. The company added that its first three quarter\u2019s profit\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":135287,"url":"https:\/\/alphastreet.com\/india\/hfcl-limited-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":146101,"position":5},"title":"HFCL Limited Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"November 1, 2022","format":false,"excerpt":"https:\/\/youtu.be\/mFRNwxOyaFA Key highlights from HFCL Limited (HFCL) Q2 FY23 Earnings Concall Management Update: [00:05:16] HFCL said it\u2019s well on its mission to double the export revenue during FY23. And this trend is also expected to continue in coming years. [00:13:03] HFCL believes its revenue and margins will continue to grow\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/146101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=146101"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/146101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=146101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=146101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=146101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}