What Led HFCL to Report a Rs 81.4 Crore Loss in Q4?

Synopsis
HFCL Limited's recent financial report reveals a staggering Rs 81.4 crore loss for Q4 FY25, a stark contrast to its previous year's profit. As the company navigates challenges in demand and revenue, it remains optimistic about future growth. Discover the factors influencing these results and HFCL's strategic plans moving forward.
Key Takeaways
- HFCL reported a Rs 81.4 crore loss in Q4 FY25.
- Revenue fell by 40 percent to Rs 801 crore.
- Net profit dropped by 46 percent for FY25.
- Challenges include reduced demand for optical fiber and margin pressures.
- HFCL has a strong order book of Rs 9,967 crore.
Mumbai, May 22 (NationPress) HFCL Limited, led by Mahendra Nahata, reported a significant net loss of Rs 81.4 crore for the fourth quarter (Q4 FY25), contrasting sharply with a net profit of Rs 110 crore from the same quarter last fiscal (Q4 FY24).
In Q4 FY25, revenue plummeted by nearly 40 percent, reaching Rs 801 crore, down from Rs 1,326 crore a year earlier, as per the company's filing to the stock exchange. HFCL specializes in telecom and defense equipment as well as optical fiber products.
Over the entire financial year, HFCL's revenue saw a decline of around 9 percent, totaling Rs 4,064.52 crore in FY25, compared to Rs 4,465.05 crore in FY24.
The net profit for FY25 experienced a substantial drop of about 46 percent, falling to Rs 177.41 crore from Rs 329.81 crore the previous year.
Challenges faced by the company include reduced demand for optical fiber cables, margin pressures from new telecom product introductions, and slower client engagement in its EPC (engineering, procurement, and construction) sector.
Nevertheless, HFCL remains hopeful regarding its future, buoyed by a robust order book amounting to nearly Rs 9,967 crore as of March 31, 2025.
Managing Director Nahata emphasized the company's commitment to long-term growth, expecting a significant increase in revenue from the optical fiber and optical fiber cable segment in FY26, driven by rising demand both locally and globally.
According to Nahata, "The company’s fiber manufacturing plant and fiber optic cable facility, which operated at 45 percent and 40 percent capacity respectively in FY25, are projected to achieve full utilization by July 2025."
HFCL’s range of telecom products, including routers and 5G fixed wireless access terminals, along with upcoming offerings like Wi-Fi 7 access points and high-capacity unlicensed band radios, are anticipated to enhance revenue.
The defense division is also expected to contribute starting in the second quarter of the current financial year, with numerous international inquiries and domestic orders in progress.
The company is innovating new defense technologies, such as drone detection radars, and has secured contracts for tactical cables and electro-optic devices from the Indian Army.