HFCL Aims for ₹10,000 Crore Revenue, Targets Growth through International Sales and Defence Contracts
Telecom gear manufacturer HFCL has set an ambitious goal to achieve ₹10,000 crore in revenue, driven by a strategic focus on international sales and a growing defence portfolio. Managing Director Mahendra Nahata recently shared the company’s growth strategy, revealing a significant order book and expansion plans, which are expected to propel HFCL towards its revenue target.
As of December 31, 2024, HFCL’s order book stood at ₹10,000 crore, a promising indication of the company’s potential for growth in the coming fiscal years. Nahata noted that a major driver of the company’s expansion is its increasing focus on international markets. HFCL is scaling up its presence globally, recruiting employees, and forming strategic partnerships with distributors and dealers to strengthen its position in key international markets. A crucial aspect of this expansion is the anticipated rise in export revenue, particularly from the company’s optic fibre segment. With increasing global demand for telecom infrastructure, HFCL expects a significant share of its telecom revenue to come from international sales. This global push is further bolstered by the company’s recent move to set up an optical fibre cable manufacturing facility in Poland. This strategic decision follows the European Commission’s anti-dumping duty announcement on Indian OFC manufacturers, with HFCL being exempt from the new regulations, thus enhancing its competitive advantage in the European market.
Financially, HFCL reported ₹1,012 crore in revenue for Q3 FY24 and is targeting an additional ₹350-400 crore in Q4. However, the company may fall short of its ₹2,000 crore full-year target due to delays in customer readiness and equipment supply, highlighting some of the challenges it faces in meeting its goals. Nonetheless, HFCL remains optimistic, with a robust order book and a growing international presence. In terms of recent business developments, HFCL has secured several notable contracts, including a ₹2,501.30 crore advance work order for BharatNet Phase III in the Punjab Telecom Circle and a ₹2,167.65 crore order from Rail Vikas Nigam Ltd for optical fibre cables and telecom gear in Uttar Pradesh (East & West) Telecom Circles. These high-value contracts are expected to contribute significantly to the company’s growth and help it establish a more dominant presence in the domestic market.
HFCL is also making strides in the defence sector. In the previous quarter, the company inaugurated a new defence manufacturing unit in Hosur, signalling its expansion into the defence space. The company is actively pursuing substantial defence orders and has received a letter of intent for ₹800 crore worth of defence contracts, though approval processes have led to delays. HFCL expects these contracts to materialise by April or May, marking a key milestone in its defence growth. As HFCL looks to the future, its strategy of expanding both its international telecom footprint and its presence in the defence sector positions it for continued growth. The company’s focus on innovation, strategic investments, and diversification into high-demand sectors provides a solid foundation for achieving its ambitious ₹10,000 crore revenue target. With a growing international customer base, major domestic contracts, and a burgeoning defence business, HFCL is poised for significant growth in the coming years. As the telecom and defence industries continue to evolve, HFCL’s focus on these key segments promises to drive its long-term success and solidify its position as a leading player in the telecom and defence manufacturing sectors.
