The spate of structural strengthening of our socio-economic foundations continuedthrough the FY18. The momentum gained through demonetisation real estate regulation andinsolvency and bankruptcy laws of FY17 was accelerated through smooth implementation ofGST and recapitalisation of banks in FY18. The momentary slowdown in economic growthappeared to settle down with FY18 GDP growth at 6.7%. The road ahead from hereon shallwitness steady pick up in our growth rate.
fY18 was a watershed year for the indian telecom industry. prolonged competition led toa year of tectonic consolidation where two large players merged and a new incumbent gainedrapid market share. the turf continued to shift from call and vaS revenues to data-linkedplay. the government of india continued to further its agenda of digital readiness fordefence forces rural population and un-served geographies across northeastern and lWeregions. the rapid spread of smartphones and mobile internet at one hand and risingpopularity of social networking and digital content on the other hand is setting the stagefor next wave of telecommunication revolution.
t is in this context that youri company's steady strengthening of its businessfoundation yields a decisive enabler going forward. the shift from wireless to opticalfibre is imminent gradual and mammoth. The spread of fibre would follow with itsdensification and fibre reaching the doorstep of consumers. We are looking at a period ofsustained and accelerated growth in demand for fibre as well as telecom network overhauland expansion. trai's recommendation of net zero import' of network equipment makesyour company a strong contender to seize this Make in india' opportunity.
Intensification of our Research & Development efforts towards innovative yet fullyindigenous WiFi network solutions has fructified. You will be happy to note that thesolution shall be ready for deployment by the end of 2018. this would enable us toparticipate in the government's initiative of deploying 1.25 million Wifi access pointsacross 250000 gram panchayats.
nfusion of modern technology in railway telecom and signaling offers dualadvantages of passenger safety and track optimization. With over 60000 route kilometersof legacy systems on the block for revamp your company's experience and learnings fromthe three ongoing projects in dedicated freight corridors would add to our qualification.Building upon its initial success in ludhiana and Jaipur our smart city division hastasted a bigger success in rajasthan in the year gone by. our foray in defence equipmentmanufacturing is steadily shaping up with one of our bids reaching the equipment trialstage and many others awaiting evaluation and results.
from total revenue of Rs 261 crore in fY12 to gross eBitda of Rs281 crore in fY18 yourcompany has scripted a remarkable turnaround. the strength of our balance sheet withsteadily strengthening cash flows and credit ratings are powering our growth orientedcapex and opex needs. in order to insulate us from supply constraint of optical fibre weare foraying into its manufacturing with 6.4 million fibre kilometer (mfkm) pa capacity asa first step of backward integration. the move is also going to enhance our profitmargins. We are also raising our ofc manufacturing capacity from 8 mfkm pa to
15 mfkm pa by adding a Greenfield plant of 7 mfkm pa capacity at Hyderabad.construction work for both these plants is in full swing with orders for key machinery andequipment already placed. With a combined capex of Rs 300 crore both these facilitiesshall commence commercial production in fY20.
our turnkey network division continues to implement and win new marquee projects acrossthe country. the current outstanding order book of the division is exceeding Rs 8250crore. With rising capabilities and stature the division is also contemplating to ventureinto overseas markets in the near future.
You would be happy to note that our revenues grew by 52% to Rs 3070 crore eBidta grewby more than 40% to Rs 281 crore and Net Profit stood at Rs155 crore during fY18. Wesucceeded to reduce our total debt by Rs70 crore. the epS at Rs1.25 per share grew by24% over the previous year.
the most vital asset of our company is its people capital. the human ingenuity andpursuit of excellence has led to quite a few product innovations during the year. We areinvesting significant attention and resources in raising the skill motivation andproductivity quotient of our talent pool.
the compassion urgency and scale towards extending a helping hand to the needy andopportunity deprived sections of our society reached its best during fY18. environmentalsustainability and community sustenance is prerequisite to business sustainability andyour
Company would continue to increase its efforts to address its responsibility towardsthem.
iplace my sincere appreciation to the members of the Board and our leadership teams fortheir incisive contributions in making Hfcl a rising force in the telecom and adjacentspaces. i extend special acknowledgement to the stellar efforts and contributions ofHfclites and thanks to our valued customers and partners. to the shareholders and thefinancial community your trust and confidence in HFCL gives me immense confidence insuccessfully steering this promising company of yours to greater heights always.
let us all work towards a fabulous Hfcl.
|With best regards |
|Mahendra Nahata |
|Managing director |