Telecom gear maker HFCL has reported a rise in consolidated net profit to about Rs 79 crore in the March quarter, reflecting a YoY growth of 15.5%. The company’s revenue also witnessed a rise of 21.13% to about Rs 1,433 crore for the fourth quarter ended March 2023. The company’s Managing Director Mahendra Nahata attributed the strong performance to the company's strategy of increasing revenue from margin accretive products, expansion of capacities, high-level backward integration, huge impetus on R&D, increased customer base and geographical expansion.
Despite global economic challenges, India's promising economy is expected to emerge as the fastest-growing in the world. HFCL has been able to withstand these challenges and deliver sturdy performance in FY22-23. Nahata exuded confidence that the company's strategic initiatives would position it well for long-term success.
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In the full FY2023, the company's net profit fell 2.5% to Rs 317.7 crore against about Rs 326 crore in the previous year. However, during FY23, revenues from international business grew significantly to Rs 817 crore from Rs 363 crore in FY22, witnessing a growth of 125% on a YoY basis. The company's continued focus on creating and expanding capacities and tapping new geographies has led to an increase in the share of product revenue to 56% in FY23 as compared to 43% in FY22. This has also resulted in an increased share of revenue from private customers to 83% in FY23 from 68% in FY22.
HFCL's unwavering focus on its core strengths, such as R&D, expansion, and innovation, has been the driving force behind its strong performance. The company's strategic initiatives to increase revenue from margin-accretive products have also paid off. Furthermore, with the increase in revenues from international business, HFCL has strengthened its position in the global market.
HFCL's strong Q4 results and its continued focus on expansion and R&D are indicative of its commitment to achieving long-term growth. Its strategic initiatives to increase revenue from margin-accretive products, expansion of capacities, high-level backward integration, huge impetus on R&D, increased customer base, and geographical expansion are expected to position the company well for future success.
