Hfcl Share Price

Company Overview

• 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.

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

Performance Highlights

• NIFTY ALPHA 50
• NIFTY500 MULTICAP 50:25:25
• NIFTY 500
• NIFTY MID-SMALL CAP 400
• NIFTY SMALLCAP 100
• NIFTY SMALLCAP 50
• NIFTY TOTAL MARKET INDEX
• NIFTY SMALLCAP 250
• NIFTY HIGH BETA 50
• S&P BSE SMALLCAP
• S&P BSE ALLCAP
• S&P BSE 500
• S&P BSE TECK
• S&P BSE 250 SMALLCAP
• S&P BSE 400 MIDSMALLCAP
• S&P BSE TELECOM
• S&P BSE MID-SMALL CAP

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%

Management

• 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

Industry Overview

• 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

• 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.

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