HFCL Limited , a diversified technology company, has announced impressive financial results for the fourth quarter and full fiscal year ended March 31, 2021. The company's performance showcases robust growth across key financial metrics, underlining its strong market position in the telecom, defence, railways, and security sectors.

Q4 FY21 Highlights

HFCL Limited reported a remarkable performance in the fourth quarter of FY21:

• Consolidated total income surged to INR 13,979.00 million, representing a substantial year-over-year growth of 109.20%.
• EBITDA reached INR 1,878.00 million with improved margins of 13.50%, up 200 basis points.
• Profit After Tax (PAT) witnessed an extraordinary increase of 894.30%, reaching INR 865.00 million.
• PAT margins stood at a healthy 6.22%.

FY21 Full Year Performance

For the entire fiscal year 2021, HFCL Limited maintained its growth trajectory:

• Total income for FY21 stood at INR 44,591.00 million, marking a 15.50% growth compared to the previous year.
• EBITDA grew by 13.50% to INR 5,857.00 million, with margins of 13.24%.
• PAT increased by 3.80% to INR 2,463.00 million.

Operational Highlights

The company achieved several operational milestones during the period:

• Completed shipment of 1.5 lakh Wi-Fi units within the first year of production, demonstrating strong execution capabilities.
• Secured contracts for Kanpur Metro and Agra Metro Rail telecommunication systems, expanding its presence in the urban transportation sector.
• Maintained a robust order book of approximately INR 6,875.00 crore, indicating a strong pipeline for future growth.

Financial Strength

HFCL's financial position remains solid:

• Reported an impressive Return on Capital Employed (ROCE) of 19.80%.
• Maintained a healthy debt-to-equity ratio of 0.48x, reflecting a strong balance sheet.

Company Overview

HFCL Limited operates across multiple high-growth sectors including telecom, defence, railways, and security. With manufacturing facilities in various locations, the company has expanded its global footprint, exporting to over 30 countries.

The company's strong performance in Q4 and FY21, coupled with its diverse portfolio and healthy order book, positions HFCL Limited well for continued growth in the coming years. As the company continues to leverage its technological capabilities and expand its market presence, investors and industry observers will be keenly watching its future developments and performance.

All financial figures in INR million, unless otherwise stated

HFCL Limited , a prominent player in the telecommunications equipment industry, has announced a strategic move to divest its entire stake in Nivetti Systems Private Limited. The company has executed a Share Purchase Agreement (SPA) to sell its 15.19% shareholding in Nivetti for a total consideration of ₹525.10 million (₹52.51 crore).

Transaction Details

The divestment involves the sale of 2,17,594 equity shares, representing HFCL's entire stake in Nivetti Systems. The transaction is structured to be completed in one or more tranches, with a portion of the payment already received and the remainder expected to be settled by mid-October.

Key Points of the Agreement

• Buyer: Trinity Tech Solutions, based in Bangalore
• Initial Payment: Approximately ₹120.00 million (₹12.00 crore) received on September 1
• Completion Date: The remaining amount is expected to be received on or before October 15
• Regulatory Compliance: The transaction has been disclosed in accordance with SEBI Listing Regulations

Strategic Implications

This divestment represents a calculated move by HFCL to monetize its investment in Nivetti Systems. While Nivetti was neither a subsidiary nor an associate of HFCL, this transaction allows HFCL to reallocate its resources and potentially focus on its core business operations.

Market Response

Coinciding with this announcement, HFCL has also addressed a query from the BSE regarding a significant increase in the trading volume of the company's shares. HFCL has clarified that there is no pending information or event that could have influenced the recent volume movement, attributing it to market dynamics.

Conclusion

The sale of HFCL's stake in Nivetti Systems marks a significant corporate action for the company. As the transaction progresses towards its expected completion in October, market observers will be keen to see how HFCL utilizes the proceeds from this divestment and its impact on the company's future strategic direction.

HFCL continues to affirm its commitment to transparency and compliance with regulatory requirements, ensuring timely disclosure of all material information to its stakeholders.