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Shareholding Info
  • Promoters
    37.84 %
  • Foreign institutions-FII
    8.35 %
  • Other domestic institutions
    0.34 %
  • Retail and other
    49.17 %
  • Mutual Funds
    4.3 %

Company Overview

Himachal Futuristic Communications Limited (HFCL) develops and produces state-of-the-art tele-communications equipment. It offers distinctive and personalised end-to-end services and solutions.

The corporation has a sizable production and Research and Development (R&D) facilities. The company's operational hubs are in Goa, Solan (Himachal Pradesh), and Chennai (Tamil Nadu). Its corporate offices are in New Delhi and Gurgaon (Haryana). The company's products and solutions include:

  • Future line
  • FTTx (Fibre to the x or fibre in the loop)
  • Microwave Radios
  • GPON (Gigabit Passive Optical Network)
  • Optical transmission, etc.

Company Journey

  • 2015 Establish new business verticals in railway communication, smart city communication, and defence communication.
  • 2018 The company joins the defence manufacturing sector to partake in the government's 'Make in India' initiative. The company receives many industrial licences to produce defence products such as electro-optical devices, electronic fuses, radars, electronic warfare and communication gear, among others.
  • 2019 Acquire the remaining equity shares in DragonWave HFCL India Private Limited, converting it to a wholly-owned subsidiary.
  • 2019 The company's name changes from Himachal Futuristic Communications Limited to HFCL Limited.
  • 2019 The company sets up a greenfield project for manufacturing optical fibre (OF) in Hyderabad, Telangana.
  • 2020 The state-of-the-art Hyderabad facility started its operations.
  • 2021 The firm announces the addition of new dual-band Wi-Fi 6 solutions to its Wireless Solutions portfolio, in addition to the existing Wi-Fi 5 product line. The company partners with Qualcomm Technologies for its newly launched Wi-Fi 6 product portfolio.

The company's stock return for the last 5 years has been measured at +151.18%.

Subsidiaries of HFCL

  • 1. HFCL Advance Systems
  • 2. HTL Limited
  • 2. Moneta Finance Ltd
  • 4. DragonWave HFCL Ltd.
  • 5. Polixel Security Systems
  • 6. Raddef private limited

Business Highlights

The firm's business segments include:

Turnkey Contracts Services
The Turnkey Contracts section provides telecom infrastructure and communication network technologies for telecom operators, defence services, railroads, safe and smart cities, etc.

Telecom Products
The telecom product segment manufactures telecom equipment, optical fibre cable, and optical fibre.

Quarterly Net Profit increased by 0.31% to ₹81.86 crore in September 2022 from ₹81.61 crore the previous month. From September 2021 to September 2022, net sales increased by 4.58% to ₹1,173.47 crore. HFCL currently employs over 1,700 people.

Performance Highlights

HFCL has displayed a profit growth of 15.39% for 2019-2022. The company spent 5.72% of its operating income on personnel costs and 3.98% on interest charges in the fiscal year that concluded on 31 March 2021. The company currently has a market capitalisation of ₹11,022 crore. It recorded a revenue of ₹1173.47 crore and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of ₹144.69 crore in September 2022.

The company is present in the following 17 indices:

  • NIFTY500 MULTICAP 50:25:25
  • NIFTY 500
  • S&P BSE 500

It had an annual ROE (return on equity) of 10% in March 2022, compared to 12% in March 2021. The company had an annual ROCE (return on capital employed) of 18% in March 2022, compared to 21% in March 2021. The company has a cash conversion cycle of -31.79 days. The company's stock return between 2019 and 2022 has been measured at +367.84%.

The shareholding pattern of the company is as follows:

  • Public- 52.23%
  • Promoters And Promoter Group- 39.23%
  • Foreign Institutional Investors (FII)- 6.66%
  • Domestic Institutional Investors (DII)- 1.87%
  • Others- 0.01%


The executive management of HFCL includes:
  • Mahendra Nahata (Managing Director)
  • Manoj Baid (Senior VP and Company Secretary)
  • Vijay Raj Jain (Chief Financial Officer)
  • Ranjeet Mal Kastia (Non-Executive Director)
  • Bharat Pal Singh (Independent Director)
  • Ajai Kumar (Independent Director)
  • Tamali Sengupta (Independent Director)
  • Surendra Singh Sirohi (Independent Director)
  • Arvind Kharabanda (Non-Executive Director)

Investor Relations Contact

Manoj Baid
Senior Vice-President (Corporate) and Company Secretary
8, Commercial Complex, Greater Kailash – II, New Delhi – 110048
Telephone: +91-11-35209400/9500

Industry Overview

HFCL has competitors in Affle (India), ITI Ltd., GTL Infrastructure, Kavveri Telecom Products Ltd., MRO-TEK Realty Ltd., Optiemus Infracom Ltd., Astra Microwave Prod, and Avantel Ltd.

The respective market capitalisation of these key players is as follows:
  • Affle (India): ₹15,367.18 crore
  • ITI Ltd.: ₹10,492.83 crore
  • GTL Infrastructure: ₹1,641.03 crore
  • Kavveri Telecom Products Ltd.: ₹19.82 crore
  • MRO-TEK Realty Ltd.: ₹120.70 crore
  • Optiemus Infracom Ltd.: ₹1,919.23 crore
  • Astra Microwave Prod: ₹2,811.85 crore
  • Avantel Ltd.: ₹725.27 crore
With 117 crore users (wireless + wireline subscribers) as of July 2022, India's telecom sector is the second largest in the world. India has a total teledensity of 83.25%, of which the rural population (which is primarily untapped) has a teledensity of 58.15%, and the urban market has a teledensity of 129.88%.

The number of internet users (broadband and narrowband subscribers) had decreased to 82.49 crore, with 40.22% of those users living in rural regions as of March 2022.

The following factors have contributed to the industry's exponential growth over the past few years:
  • Affordable prices: The lower price of mobile handsets and additional services has created a growing demand.
  • Introduction of MNP (Mobile Number Portability): MNP allows users to move from one operator to the other with ease when they shift their geographical location. It has added to the convenience of telecom usage for users, resulting in growth of the industry.
  • Increased accessibility: With affordable prices and growing demand, telecom was able to reach every house and every person.
  • Widening 3G and 4G coverage: Better network coverage allows more and more people to access the internet and use their mobiles.
  • Government initiatives to boost India's domestic telecom manufacturing capability: On October 1, 2022, the Universal Service Obligation Fund (USOF) announced the TTDF or Telecom Technology Development Fund for research and development in the sector.
  • Changing subscriber consumption behaviour: More and more subscribers are preferring to stick to telecommunication services for the advantages it brings to them and choosing long-term plans that are within budget for them and better for the industry.
  • Supportive regulatory system: The Telecom Regulatory Authority Of India (TRAI) manages and regulates the telecom services, nurturing its growth.

Risks and concerns

For the telecom Sector:

  • Poor financial health of the sector: Gross revenue has declined dramatically in this sector with a shortage of finances for development, even though a recent Supreme Court decision in 2020 has paved the road for the industry's development.
  • Spectrum sale costs more: The government auctions spectrum at rather high prices. This has a domino effect where it is difficult for cell provider companies to provide services at reasonable costs and speed.
  • High competition and a tariff war: Following the advent of Reliance Jio, competition between several telecom sectors has intensified. It has reduced their net profit and caused a financial crunch, delaying further investment. Other telecom companies must lower their voice and data tariffs to compete with Reliance Jio.
  • Falling ARPU, or the average revenue per user: The telecom industry in India is considering consolidation as the one and only way to increase its revenues. This is because of a severe and sustained reduction in ARPU, which is coupled with declining profits and, in some cases, significant losses. The Supreme Court’s approval, in 2019, of the government's request to collect a gross income (adjusted) of approximately ₹92,000 crore from telecoms has added to their concern.

For Fibre Optics:

  • Insufficient fixed lines penetration: While most developed nations have a relatively high fixed-line penetration, India has an extremely low fixed-line penetration within the network. In industrialised countries, more than 70% of towers are connected to fibre networks, compared to just about 25% of towers in India. Towers must be connected to the 5G network using high-speed systems. Such high speeds are not feasible on the current radio systems.
  • Intense industrial competition and vulnerability to raw material price volatility: Telecom companies' operational and capital expenditures heavily influence the cable industry's demand. Any delay or deferral of such expenditure would have an impact on the revenue visibility of enterprises serving this market.

Furthermore, HFCL is working to broaden its product portfolio and expand into export markets where significant global players have developed a foothold. The tough competition in that category may limit its price flexibility. However, the company is concentrating on gaining a foothold in new markets and providing value-added services.

The corporation is primarily shielded from the volatility of optical fibre prices due to backward integration. It remains vulnerable to the volatility of other raw materials bought from external sources and the time lag in the pass-through of escalating costs.


MCS Share Transfer Agent Ltd.
Ist Floor, Okhla Industrial Area, Phase-I,
New Delhi - 110020
Telephone.: 011-41406149

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