Thread by @tushar9590

#HFCL
Thread on a Co which commands a strong hold in optical fiber & Optical fiber cables domestic as well as globally. & Co is moving towards product side of the biz around 5G.
Let's see what's all lined up for the co in future.
(1/n)

Co to deploy 425 crore for expansion of Fiber manufacturing capacities for both Optical Fiber & Optical Fiber cable.
Same to commission by June 2023.
Co has been approved as “Trusted Source” from National security council secretariat (NSCS)
(2/n)

Revenue mix of the co has moved from 26 pct product in 2020 to presently 42 pct from product side. Co aims to further increase the contribution from Product side, as it impacts the margins in a positive way & helping lowering the receivables
(3/n)

Presently revenue mix on the products side is predominantly from the Fiber optics side, more than 80 pct, & rest from other Telco products, the gap to get narrowed as Co expands its sale of other products including Wifi, MW P2P & P2Multipoint Radio & 5G product line
(4/n)

As Telco products mature, additional rev will strt kicking in, co expects the same by Q2FY23.

Order book as on 31st Dec stands at 5463 Crore, including bth prod & project
(5/n)

Regarding partnering with Aprecomm & CommAgility, the co says these partnerships would lead to these partner cos supplying products to HFCL, where IPR remains with HFCL, this is in addition to HFCL producing the Telco products themselves as well
(6/n)

HFCL designed & manufactured products to have lower overheads, which would make it price competitive amongst its global peers, & thus wud benefit co on global export side.
Exports currently at 8 pct of total rev, mgt is confident of doubling the exports by next fiscal FY23
(7/n)

Co has appointed a new team & put up a lab in place in US to work on the fiber optic side on the design & cost competitiveness of the product, specifically to cater to the US based on design requirements.
(8/n)

2 Wholly owned subsidiaries put in place in US & Netherland, & appointed sales people to cater to these new markets to boost the exports.
(9/n)

Debt as on 31st Dec stands at 700 crore, of which 200 Crore is Term Loan & 500 crore is working capital loan.
Debt to Equity stands at 0.26 coming down sharply vs last fiscal
(10/n)

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