HFCL Q4 results: Posts net profit of Rs 86.50 crore; company firms up 5G plans

NEW DELHI: HFCL Limited, a homegrown optic fibre-to-night-vision devices maker, said that its current order book currently stands at Rs 6,875-crore, and the company would continue to focus on next-generation (5G) portfolio, following which it has firmed up plans to design 5G small and micro cells.

Delhi-based company posted a net profit of Rs 86.47-crore for the quarter ended March 31, 2021, a 1.6% increase over the previous quarter’s Rs 85.11 crores. HFCL’s total income stood at Rs 1,391.40-crore in Q4, 2020-21 over Rs 1,277.40-crore in Q3 FY 2020-21.

The company attributed growth mainly to its in-house designed and developed products, in line with the Atmanirbhar Bharat (self-reliant India) which it said would continue to add to its overall profitability.

“We hope to maintain the growth next year, and will continue to have a good growth trajectory,” Mahendra Nahata, managing director of HFCL Limited said, adding that the company is planning to increase Fibre-to-the-Home or FTTH cable production to 4 million fibre kilometres this year.

The domestic fibre maker works closely with incumbent telecom carriers. Both Reliance Jio and Bharti Airtel are aggressively focussing on increasing the FTTH network footprint in large cities for triple-play services.

On the backdrop of soon-to-commercialise 5G networks, the homegrown company, according to Nahata, would kickstart designing of small and micro cells at its Gurugram and Bengaluru facilities soon.

The company has designed, developed and produced in-house Wi-Fi 6 systems, compatible with the next generation (5G) technology, in addition to point-to-point and point-to-multipoint radios.

By the end of December 2020, the company had shipped 100,000 indigenously designed, developed, and manufactured Wi-Fi systems.

With the current order book of Rs 6,800 crore, the company believes that more relevant business opportunities are expected to come as India moves closer to 5G commercial rollouts.

The company is also optimistic about its business in the defence sector as the company supplies electronic fuses and night-vision devices to the Indian armed forces.

The business between the telecom and defence is evenly distributed presently.

The company has also recently partnered with state-run Centre for Development of Telematics (C-DoT) to co-design Fibre-to-the-Home (FTTH) and Gigabit Passive Optical Network (G-PON) solutions.

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