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Himachal Futuristic Communications Ltd.

BSE: 500183 Sector: Telecom
NSE: HFCL ISIN Code: INE548A01028
BSE LIVE 14:59 | 22 Aug 15.65 -0.20
(-1.26%)
OPEN

15.90

HIGH

16.20

LOW

15.55

NSE 14:44 | 22 Aug 15.75 -0.10
(-0.63%)
OPEN

16.00

HIGH

16.20

LOW

15.50

OPEN 15.90
PREVIOUS CLOSE 15.85
VOLUME 669376
52-Week high 19.19
52-Week low 11.09
P/E 18.86
Mkt Cap.(Rs cr) 1,940
Buy Price 15.60
Buy Qty 17616.00
Sell Price 15.65
Sell Qty 15955.00
OPEN 15.90
CLOSE 15.85
VOLUME 669376
52-Week high 19.19
52-Week low 11.09
P/E 18.86
Mkt Cap.(Rs cr) 1,940
Buy Price 15.60
Buy Qty 17616.00
Sell Price 15.65
Sell Qty 15955.00

Himachal Futuristic Communications Ltd. (HFCL) - Chairman Speech

Company chairman speech

Dear Shareholders

We have witnessed another year of continued growth in recently concluded FY16. We madegood progress across all our key objectives as set out in the previous year. Turnkey andOptic Fibre Cable (OFC) businesses both have contributed to our Growth while we madeencouraging progress in our newly added business dimensions of Railways and Defence. TheCompany has achieved highest ever revenue of 2570 Crore with EBIT Margin of 6.4% and ourorder book stands at 3300 Crore approx.

We continued to leverage our expanded capacity to grow the OFC business. Havingexpanded our OFC capacity at Goa facility in FY15 we expanded the OFC capacity of oursubsidiary company HTL Limited in the year gone by. You will be happy to note that theChennai facility of HTL is fully operational. An impressive growth in exports of OFCremains the highlight of the year. Our export focus is going to intensify in coming times.

I am delighted to share that our turnkey business has been successful in bagging anAdvance Purchase Order (APO) of about 1245 Crore from BSNL for setting up of theprestigious countrywide Telecom Transmission Network. Your Company has also emerged as thelowest bidder in one more such tender. The order book position shall get a significantboost from such positive outcomes.

We are considering to expand our telecom product bouquet beyond GSM equipment withpotential addition of WiFi Systems and Optical Broadband Access Equipment (FTTx). Ourtelecom product and turnkey solutions segments shall both continue to drive Company'sgrowth in view of the Government's thrust on transforming the country into a 'DigitalIndia' on the back of a robust OFC network that addresses fast multiplying datatransmission requirements. Schemes like 'BharatNet' and 'Rural Wireline Broadband Scheme'shall fuel the demand for OFC and network installations. Need for speed and quantum jumpin data consumption shall emphasise continued investments in next generationinfrastructure and networks by telecom service providers which augurs well for yourCompany.

On the macro-economic front the aims of Railway Modernization DefenceSelf-sufficiency Digital Security Make in India Smart Cities etc. could not have beenbetter timed than now. All these initiatives spell a bountiful of opportunities for yourcompany which has expanded its capability of manufacturing telecom products and hasassimilated a valuable reservoir of know-how on constructing formidable telecom networkacross all kinds of terrains and topographies.

Having envisaged dedicated divisions to cater to emerging opportunities in Railways andDefence in the previous year we have made good progress in FY16. Network Modernisation ofIndian Railways by way of dedicated freight corridors and port connectivity remains highon Government's priority. Ensuing Metro Rail Projects would see a multiplier growth on theback of Smart City Program. All these provide a big opportunity of Design Supply andExecution of Telecom Network on turnkey basis for our Company. The first success in formof a ' 92 Crore approx order from a leading MNC adds to our confidence ofextracting better results in coming times.

The convergence of country's policy direction of strengthening the manufacturing sectoras well as modernising its framework of sovereign defence is likely to catapult India as apromising destination for defence related manufacturing and assemblies. Our in-timealignment with this emerging segment has helped us earn seven Defence Production licences.Our discussions on forging technology alliances with some renowned global defencesuppliers are at advanced stages.

In another synergistic move aimed at strengthening our business interest in electronicsurveillance and security we have recently increased our stake in Polixel SecuritySystems Private Ltd. to 94%. Polixel now a subsidiary company of HFCL providessurveillance and security equipment and solutions and holds a promising prospect in lightof increasing thrust on Homeland Security and Smart Cities.

With all these new developments and absolute readiness of our traditional businessorder book of ' 3300 Crore with tender pipeline of another ' 5000 Croreyour Company is headed to further fortify its growth prospects as formidable player in thetelecom products and infrastructure development.

Our growth has been fueled by unflinching dedication passion and hard work of ourpeople. On behalf of the Board of Directors I appreciate their valued contribution. Iextend my sincere thanks to all other stakeholders including you our dear shareholdersfor the continued trust and patronage that we at HFCL have always received and valued.

In continued togetherness our march forward on the path of value creation appearssmoother and surer. Let us move ahead with our agenda of strengthening the telecom networkand infrastructure in India and elsewhere in the world.

With best wishes

Mahendra Nahata

Managing Director