HFCL Limited

Rs.5,200 crore

eliance Retail, BSNL & RailTel, we have been able to close Q2 FY23 with an order book of more than Rs.5,200 crore. The global macro environment continues to be challenging and dynamic. However, with the advent

600 million

transformation journey across the sectors. The current global demand for Optical Fiber Cable is 600 million fiber km equivalent cable. Since HFCL Limited October 20, 2022 o

95%

er km equivalent cable. Since HFCL Limited October 20, 2022 over 95% demand is witnessed in global markets and given the competitiveness of our portfolio in Optical Fi

rs,

so appointed dealers and distributors in many Countries to cater global demand. Over the next 3 years, we aim to build upon our global customer relations and export footprints expeditiously and emerge a

88%

expeditiously and emerge as a large global player in this space. Our export revenue has grown by 88% in Q2 FY23 on a Year to Year basis. In this half year FY 23, export revenue stood at Rs.376 crores

Rs.376 crore

grown by 88% in Q2 FY23 on a Year to Year basis. In this half year FY 23, export revenue stood at Rs.376 crores compared to Rs.171 crores in H1 FY22 showing an increase of 120%.We are well on our mission to do

Rs.171 crore

n a Year to Year basis. In this half year FY 23, export revenue stood at Rs.376 crores compared to Rs.171 crores in H1 FY22 showing an increase of 120%.We are well on our mission to double the export revenue du

120%

export revenue stood at Rs.376 crores compared to Rs.171 crores in H1 FY22 showing an increase of 120%.We are well on our mission to double the export revenue during current financial year. This trend

Rs.3.5

te a strong 5G network infrastructure in India, the telecom industry will witness an investment of Rs.3.5 to 4 lakh crores in the next 5 years to facilitate 5G services rollout. Indian telcos are estimated

4 lakh crore

g 5G network infrastructure in India, the telecom industry will witness an investment of Rs.3.5 to 4 lakh crores in the next 5 years to facilitate 5G services rollout. Indian telcos are estimated to spend betwe

2.5 billion

next 5 years to facilitate 5G services rollout. Indian telcos are estimated to spend between 1.5- 2.5 billion dollars on Optical Fiber Cable alone in the next three to four years. The domestic Optical Fiber

16 lakh

length and breadth of our Country. In India, BharatNet alone will lead to an opportunity of laying 16 lakh kilometre of Optical Fiber Cable translating in almost 50 million fiber Kms. There is tremendous

“Since HFCL Limited October 20, 2022 over 95% demand is witnessed in global markets and given the competitiveness of our portfolio in Optical Fiber Cable, equipment and end-to-end network solutions, we aspire to cater to more markets and more customers.”

“Over the next 3 years, we aim to build upon our global customer relations and export footprints expeditiously and emerge as a large global player in this space.”

“HFCL Limited October 20, 2022 We expect to receive the approval from the government any time now, and this investment will support various stages of development and deployment of a futuristic range of technology products and solutions.”

“And, I expect good business to emerge from electronic fuses, not only in India but abroad also, because we have IPR of this.”

“HFCL Limited October 20, 2022 As I have been telling earlier also, we expect revenues to start from defense products in the next financial year, that is FY23-24 only.”

“And you have mentioned in the presentation that this, say for example, electronic fuses, can be $0.39 billion in FY25.”

“But yes, from two years, FY25 and all that, whatever we have mentioned in the presentation, holds good.”

“But yes, numerically, I think we should expect some 20% - 25% market share at least.”

“And you mentioned next year you expect some revenue.”

“Okay, but do we expect a, say, INR100 crore, INR200 crore kind of”

Mahendra Nahata

53

Aman Vij

12

Moderator

8

Sanjay Shah

7

Hardik Vyas

6

Pranav Khandwala

5

Sahil Sanghvi

4

Dipesh Sancheti

3

Swapna Kamath

2

Anand Jain

2

Mahendra Nahata

Good Evening Ladies and Gentlemen, A warm welcome to HFCL’s earnings call for Q2’FY23. I truly appreciate and express my gratitude for making it to HFCL's earnings call for second quarter and first half of FY23. I am sure that you got a chance to go through our financial results, press release and investor presentation, which are available on the website of the Company and also on the website of stock exchanges. For HFCL, Q2 FY23 has turned out to be quite promising. We were able to continue on our sustainable growth path, which was fueled by some key product launches including world’s first Open source Wi-Fi 7 Access Points, 5G-8T8R Macro Radio Unit and 5G Lab-as-a-Service during India Mobile Congress 2022 - South Asia’s largest digital forum. As a technology-driven enterprise, there is a significant thrust on innovating futuristic5G products for which we have collaborated with industry leaders like Qualcomm. This will create huge opportunities for our new products based on 5G technol

Mahendra Nahata

Thank you, very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press ‘*’ and ‘1’ on your touchtone telephone. If you wish to remove yourself from question can please press ‘*’ and ‘2’. Participants are request to use handsets while asking the question. Ladies and Gentlemen we will wait for the moment while the questions queue assemble. Reminder to the participants anyone who wishes to ask a question may press ‘*’ and ‘1’ at this time. The first question line of Aman Vij from Astute Investment Management. Please go ahead. is from the Good evening, sir. My questions are you have built a very good defense portfolio, so my questions are on that part of the business. If you can talk about a little bit on the electronic fuses and electro optical devices. What is the order book like, where we are in terms of scaling that business? That would be helpful. Yeah Aman, thank you, very much. For your good question. In fact, as you would know, defens

Aman Vij

Sure Sir, a little bit clarification, so yes, I just wanted more clarification, sir. We had mentioned that we had bid for 5 million fuses. So that order is canceled or what has happened to that order?

Mahendra Nahata

No, testing is in progress. There have been certain issues for all the Indian private companies who had participated, and we have gone back to government and asked them to redo the testing part of it and that is under consideration in government. It has still not been finalized. Neither the order has been finalized from anybody, nor the financial bids have been opened .

Aman Vij

Okay, sir. And you have mentioned in the presentation that this, say for example, electronic fuses, can be $0.39 billion in FY25. Sir, in this year, what is the current size of the market, in FY22-23?

Mahendra Nahata

In the current financial year, no orders have been placed on the private industry. Government is buying from the PSUs only. So we don't know the real size of the market. But yes, from two years, FY25 and all that, whatever we have mentioned in the presentation, holds good.