Presentation Investor Meeting PDF
Presentation Investor Meeting PDF
Presentation Investor Meeting PDF
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HIMACHAL FUTURISTIC
COMMUNICATIONS LTD.
INVESTOR PRESENTATION
MARCH 2019
Company Overview
• Himachal Futuristic Communications
om Ltd. (HFCL) is an
established leader offering
n fully integrated communication
network solutions. State-of-the-art Manufacturing Facilities
• Manufactures optical fiber
b cables (OFC) and high end • OFC manufacturing at Verna, Goa & Chennai, Tamil Nadu
transmission and access equipment
eq . • Telecom Equipment manufacturing at Solan, Himachal Pradesh
• FRP Rod manufacturing at Hosur, Tamil Nadu
• Specialized in providing
din turnkey solution to telecom service
providers,
pro railways,
ys, defence,
d smart city & surveillance projects. Backward Integration / Expansion at Hyderabad, Chennai
• Deployed more than 25,000 cell site and have laid over 1,00,000
0 • A greenfield Optical Fiber manufacturing facility is being set up with a
km of OFC network. capacity of 6.4m Fkm which will strengthen the Supply Chain and enhance
Operating Margins .
• Green field OFC manufacturing facility is also being set up with a capacity
of 10.5m Fkm
• Expansion of OFC manufacturing capacity at subsidiary HTL Ltd. from 7m
fkm to 10.5m fkm
• Post expansion, consolidated OFC capacity shall reach at 29m fkm
2
Board Of Directors
Mahendra Pratap Shukla - (Non-Executive Chairman) Ranjeet Anand Kumar Soni (Non-Executive Director -(Nominee
• An Electrical Engineer with vast experience in Telecom Industry – IDBI)
• Ex-Chairman & MD of TCIL & MTNL • Masters In Mathematics & JAIIB Certification From Indian
• Awarded Telecom Man of the Year award in 1992 for his Institute of Banking & Finance
commendable contribution to the Telecom Industry • Over 18 Years of Experience in Corporate & MSME Segments
With Banking Industry
Board of Directors
Managing Director
Mahendra Nahata
2001
2014
1996
2011
2016
2018
award of seven
Himachal Pradesh network solutions manufacturing manufacturing
manufacturing licenses
for Telecom facility expanded facility expanded
from GoI
Initial Listing Operators to 1.5m fkm to 2.6m fkm Exit from CDR
1989
1997
2008
2012
2015
2017
Company OFC Manufacturing Acquired 74 % New Strategic Capacity of Goa Capacity of Goa Capacity of Goa
Incorporated Facility stake in HTL Ltd. Partnership manufacturing manufacturing manufacturing
Set up under divestment With Reliance Jio for facility expanded facility expanded facility expanded
at Goa with program of Govt of creation of 4G to 4.9m fkm to 7m fkm to 8m fkm
capacity of India Network Infrastructure
0.45m fkm Commencement
Restructured Debt of OFC
Also, set up & Equity manufacturing
Wireless plant at Chennai,
Manufacturing Merger of high Tamil Nadu with
Facility at Solan, net-worth company, capacity of 4m
Himachal Pradesh Sunvision fkm
Engineering
Company Pvt. Ltd.
5
Manufacturing Facilities
OFC Manufacturing
Verna, Goa
Capacity: 8m fkm
OFC Manufacturing
Chennai, Tamil Nadu
Capacity: 7m fkm
Planned expansion : 3.5m fkm
Capacity: FRP Thermal - UV 7,66,800 kms /IGFR - 22.50 MT/ARP 1,80,000 kms
7
Customer Presence
9
PRODUCTS AND SOLUTIONS PORTFOLIO
10
An Agile Portfolio of Products & Solutions
12
Optical Fiber Cables
Conventional cables
ͻ Armoured Cable
ͻ Aerial Cables- ADSS and Figure-8
ͻ Duct Cables
ͻ Ribbon Cables
Applications
FTTH Cable
ͻ Indoor/Outdoor cables. Long Distance Network
ͻ Micro-duct / Mini-cables / Air Blown
Cables.
Intra-city Network
ͻ FTTH Cables FTTH Network
ͻ In-Premises Cables In-house Distribution
Specialty Cables
ͻ Tactical Cables
ͻ Intrusion-Free Cables
ͻ Wire Armoured Cables
ͻ Fire Survival Cables
ͻ Easy peel cables
13
Manufacturing Process
Backward Integration
n – Fiber Manufacturing Optical Fiber Cable Manufacturing
Preform Feeding
Sheathing
Induction Furnace Secondary
Coating HDPE or
A loose tube Nylon casing
is shaped on is shaped over
Cooling Tube the stranded
one or more
Ribbon primary unit / loose
individual coated tube
Control and Measure Colouring of fibers optical /
Optical fibers aligned in a ribbon fiber Stranding
for ease of single row and gap in Loose tube
WOW Coating Unit identification in the most the tube is are stuck
during compact filled with around the
installation and cable suitable central
operation package filling gel strength
UV-lamps fiber S U
14
Telecom Products
Unlic
Unlicensed Band Radio
Provide
Prov high speed point-to-point
and point-to multi-point
conn
connectivity solution in unlicensed
Microwave Radio Equipment ISM bands.
Integrated high bandwidth radio unit
with centralized network
management
15
Surveillance Products
VMS
Video Management System • Focused on Smart City Solutions,
City Surveillance, Traffic
Enforcement, Critical
PMS Infrastructure Protection,
Parking Management VA
System Video Analytics Industrial & Government Projects
16
Defence Products
17
SOLUTIONS
18
Telecom Network Solutions
OFC Network
• OFC Survey & Network Design
• fiber Deployment
• Site and Infrastructure Built-up WIFI : Providing complete eco system for WIFI
• Installation & commissioning services
• Operations & Maintenance • Design and Implementation of WIFI solutions
• Offering entire range of WIFI AP’s, WLC’s,
Portal (Cloud/Appliance) and Management SW
• Front haul and Backhaul integration and
FTTx Network services roll out
• Planning & Design
• Equipment Supply
• Installation & Commissioning
• Operations & Maintenance
Specialized Services
• Network optimization
• Managed Services
Mobile Network • RF network Optimization
• Cell Site Infrastructure
• Supply , Installation & Commissioning
• BSS Equipment manufacturing & Supply
• Centralised NMS
• Operations & Management
19
Defence Network Solutions
Fiber Network
Rollout of dedicated optical fiber network for armed IPMPLS Network (Routing & Switching)
forces Converged Nationwide IP/MPLS Backbone Network with 219
Access Network Locations and Integrated IMS based
Optical Transport Network Communication Solution on Turnkey Basis for Defence
Rollout of exclusive and dedicated Nationwide Network
DWDM based Optical Transmission backbone
network for Armed Forces
20
Railway Communication Network Solutions
• In order to leverage its telecom product and EPC capabilities in adjacent space,
Company has ventured into railways business
• HFCL offers integrated solutions crafting a combination of its own products and those
others from leading manufacturing OEM partners from India and abroad.
• The Company is currently implementing telecom networks for three greenfield domestic
railway freight corridor projects received from marquee customers like L&T, Alstom &
China Rail
Network Design Equipment Design
• HFCL has also been awarded two overseas contracts to execute the Telecommunication
Systems projects for Mauritius Metro Express Project and Dhaka Metro Mass Rapid
Transit System
Post Deployment
Services
21
Smart City & Surveillance Solutions
Smart City Projects executed by HFCL
HFCL’s offerings in the Safe & Smart city domain include key core solutions like
Communication / IT / Telecom infrastructure, data centre, disaster recovery and Ludhiana Safe City
management, security, surveillance, traffic management and citizen / mobile • 1,450 cameras at 159
Locations with 30 days
applications. * storage at Police lines
Data Centre.
• Applications Portfolio:
VMS, VA, ANPR, RLVD,
Intelligent Traffic NMS, Antivirus and
Safe City Solutions Video Surveillance
Management Solutions Backup Software.
23
Key Highlights – Consolidated Financials
Debt /Equity is
PAT up now comfortable
Completely from a loss of at 0.34x
Transformed INR 67 Cr in
on Growth FY12 to INR Debt is largely
Trajectory 172 Cr in FY18 Working
Debt down 87% Capital
Revenue up from INR 2,211
from INR 305 Cr in Cr in FY09 to
FY12 to INR 3,278 INR 408 Cr by
Cr in FY18 FY18
49% CAGR
24
Performance Metrics
Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn)
32,781 32,858
27,709 29,072 3,902 4,750
3,508
21,717 22,243 3,076 2,787 3,239
2,683
2,143
1,678 1,563 1,237 1,717 1,326
7,261 564
3,045 462
-668
FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M
FY19* FY19* FY19*
-21.9%
FY12 FY13 FY14 FY15 FY16 FY17 FY18 9M
-667
FY19*
25
* Standalone
Debt Equity & Shareholders Return
Debt (INR Mn) Debt / Equity (INR Mn)
22,112
15,000 0.60
0.50 12,116
0.42 0.44 0.50
13,051 10,000 0.40
9,206 10,446
7,584 0.34
0.30
4,530 4,116 3,795 4,637 4,582 4,077 4,637 4,582
3,206 3,174 5,000 4,077 0.20
3,174
0.10
- 0.00
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18
26
* Standalone
Consolidated Income Statement
PARTICULARS (INR Mn) FY17 FY18
Revenue from Operations 22,029 32,517
Other Income 214 264
Total Income 22,243 32,781
Total Expenses 20,100 29,705
EBITDA 2,143 3,076
EBITDA Margin 9.63% 9.38%
Depreciation 218 232
Finance Cost 624 636
Share of net profits of JV's accounted using equity method (59) 14
Exceptional Items 0 (18)
PBT 1,242 2,204
Tax 5 487
Profit after Tax 1,237 1,717
PAT Margin 5.56% 5.24%
Other Comprehensive Income 18 12
Total Comprehensive Income 1,255 1,729
EPS (Diluted) 1.00 1.38
27
Consolidated Balance Sheet
EQUITIES & LIABILITIES (INR Mn) FY17 FY18 ASSETS (INR Mn) FY17 FY18
(A) Share Capital 1,239 1,239 (A) Property plant & Equipment 1,582 1,657
(B) Other Equity 8,402 10,273 (B) Capital Work in Progress 17 17
(C) Goodwill 258 258
Non Controlling Interest 15 54
(D) Other Intangible Assets 43 43
Total -Shareholder Funds 9,656 11,566 (E) Intangible Assets under development - 82
(F) Investment in Associates/ JV 42 56
Non Current Liabilities (G) Financial Assets
(A) Financial Liabilities (i) Investment 445 461
(ii) Trade receivables - 7
(i) Borrowings 2,676 1,413
(iii) Others 74 133
(ii) Financial guarantee Obligations 2 3
(H) Deferred Tax (Net) 1,226 1,187
(B) Provisions 186 231 (I) Other Non Current Assets 9 22
Total - Non – Current Liabilities 2,864 1,647 Total - Non – Current Assets 3,696 3,923
Current Assets
Current Liabilities (A) Inventories 2,454 2,136
(B) Financial Assets
Financial Liabilities
(i) Investment 17 36
(i) Borrowings 1,801 2,004 (ii) Trade Receivables 11,794 12,334
(ii) Trade Payables 4,572 5,626 (iii) Cash & Cash Equivalents 59 666
(iii)Other Financial Liabilities 3,505 4,378 (iv) Bank balances other than above 916 655
(B)Other Current Liabilities 331 636 (v)Loans 67 67
(vi)Others-Advances 2,634 4,411
(C)Provisions 25 27
(C) Current Tax Assets (Net) 592 964
Total – Current Liabilities 10,234 12,671
(D) Other Current Assets 525 692
Total – Current Assets 19,058 21,961
GRAND TOTAL - EQUITIES & LIABILITES 22,754 25,884 GRAND TOTAL – ASSETS 22,754 25,884
28
Standalone Income Statement
PARTICULARS (INR Mn) FY17 FY18 9M-FY18 9M-FY19
Revenue from Operations 20,668 30,842 21,400 32,754
Other Income 186 195 76 104
Total Income 20,854 31,036 21,476 32,858
Total Expenses 18,860 28,210 19,521 30,071
EBITDA 1,994 2,826 1,955 2,787
EBITDA Margin 9.56% 9.11% 9.10% 8.48%
Depreciation 157 163 121 127
Finance Cost 599 609 487 594
Share of net profits of JV's accounted using equity method 0 0 0 0
Exceptional Items 0 (18) 0 0
PBT 1,237 2,036 1,347 2,066
Tax 0 486 385 739
Profit after Tax 1,237 1,550 962 1,326
PAT Margin 5.93% 5.00% 4.48% 4.04%
Other Comprehensive Income 19 (5) (1) -8
Total Comprehensive Income 1,256 1,545 961 1,318
EPS (Diluted) 1.01 1.24 0.78 1.05
29
Standalone Balance Sheet
EQUITIES & LIABILITIES (INR Mn) FY17 FY18 ASSETS (INR Mn) FY17 FY18
(A) Share Capital 1,239 1,239 (A) Property plant & Equipment 1,068 1,074
(B) Other Equity 9,196 10,921 (B) Capital Work in Progress 14 14
(C) Other Intangible Assets 41 30
Total -Shareholder Funds 10,435 12,160
(D) Intangible Assets under development 82
(E) Investment in Associates/ JV 186 186
Non Current Liabilities (F) Financial Assets
(A) Financial Liabilities (i) Investment 444 440
(i) Borrowings 2,376 1,113 (ii) Trade receivables
(iii) Others 915 1,041
(ii) Financial guarantee Obligations 6 4
(G) Deferred Tax (Net) 1,224 1,187
(B) Provisions 164 205 (H) Other Non Current Assets 1 19
Total - Non – Current Liabilities 2,546 1,322 Total - Non – Current Assets 3,893 4,073
Current Assets
Current Liabilities (A) Inventories 2,176 1,787
Financial Liabilities (B) Financial Assets
(i) Investment 17 36
(i) Borrowings 1,653 1,862 (ii) Trade Receivables 11,472 12,341
(ii) Trade Payables 3,924 5,158 (iii) Cash & Cash Equivalents 24 492
(iii)Other Financial Liabilities 3,474 4,320 (iv) Bank balances other than above 775 592
(B) Other Current Liabilities 215 611 (v) Loans 144 68
(C) Provisions 22 25 (vi) Others-Advances 2,668 4,484
(C) Current Tax Assets (Net) 574 951
Total – Current Liabilities 9,288 11,976
(D )Other Current Assets 526 634
Total – Current Assets 18,376 21,385
GRAND TOTAL - EQUITIES & LIABILITES 22,269 25,458 GRAND TOTAL – ASSETS 22,269 25,458
30
Strong Order Book of ~INR 11,000 Cr provides visibility
Total Orde
Order
er book
ookk
of ~INR
R 11,000
0 Cr Order Book To Revenue (INR Cr.)*
11,000
* Standalone 31
INDUSTRY OVERVIEW
32
Telecom - Mature Eco-system Is Driving Pan India Growth
Government Initiatives 4G, 5G, Fiberisation
Encouraging investment in high-capacity 4G is the key driver behind increasing users’
4G appetite towards data consumption. Aggressive 4G
networks and accelerate public access to
5G expansion capturing 92% share of total data traffic
Internet
Digital India, Bharatnet, defence Communication,
Wi-Fi, Railways, Smart Cities etc. Only 20-25 per cent of sites in India are fiberized, a
number that needs to go up to 80-85 per cent by
National Digital Communication Policy, 2018 sets
2022 to support 5G and its enabling technologies
aggressive targets
IoT, M2M
Consumption Pattern
Total Data usage per month grew ~40 times in Device Ecosystem
last three years from 128 PB to 4,867 PB Aggressive evolution of device ecosystem
usage / user pm grew 12 times in three years Sharp decline in handset prices
from 0.8GB to 9.41 GB Substantial additions to LTE device base
Usage grew 109% YoY in 2018 reaching 277m
Video contributed to 70%-80% share of mobile LTE device ecosystem continues to develop
across LTE bands in India
༤
data traffic 2018
Demand has shifted from call and VAS to a
data-linked play Affordable Tariffs
Entry of Jio altered the face completely
Tariff declined to INR 11 / Gb from INR 287 in
Source : TRAI
AII, Nokia
a MBiT
iTT, Cisco
o VNI 33
2014
Industry Growth
Internet Subscribers (Mn) 3G/4G device base (Mn)
900 530
432
379
494 560 310 335
422
343 218
128
47
9.5
2.1 5.1 6.6
0.9 1.2
Source : TRAI
AII, Nokia
a MBiT
iTT, Cisco
o VNI,Co
o Estimate 34
Data Consumption To Leap Frog – Doubling YoY
DATA USAGE PER MONTH, PENTABYTE Per Subs Data Usage / Price per GB (INR)
(PB)
226.0
9.43
Total, 4867
4G, 4472
5.59
2360 76.0
36
Source : NDCP, 2018, EY Broadband 2022
Smart Cities & Surveillance
Role of ICT in Smart City
37
Source : EY Broadband 2022, smartcities.gov, PwC
Defence
38
Railways
39
9
Massive US$ 100 Bn+ Industry Opportunities
Fiberizing
70% of the towers FTTH shall play a Government
Huge will require an estimated significant role in and Private Operators
Infrastructure 600,000 fkm, at an broadband vision. Shall continue
expenditure investment of INR 560 Bn Fixed broadband to rise investing
is underway in India to 113.5m household
5G deployments are likely to connections, at a CAGR
substantial capital
Strengthening backhaul entail massive investments of 40.7% during 2017-22 in upgrading telecom
om
and FTTx for a fiber of around INR 4,200 bn infrastructure GoI’s push in
rich diet In next 5-6 years fast-tracking its Smart City
mission is yielding results
Need for High Speed with SPVs getting formed
Broadband
R&D efforts in most cities
towards
innovative, indigenous Outlay of INR 2,040 Bn
Nearly 70% of India’s WiFi network solutions has been approved
towers need to be shall be ready for 99 cities
fiberized by 2020 for deployment
in 2019
OFC installations to
become critical for network Railways
Make In India push for
expansions would overhaul
Defence Products provide
the signaling system
Networks to become denser an opportunity of
by spending about
and deeper – making INR 500 Bn in HFCL’s
INR 850 bn over
fiberization an addressable market
next 5-6 years
imperative
40
Value Proposition
41
Capital Market Information
Share Market Performance
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18
Himachal Sensex
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may be "forward looking statements" based on the currently held beliefs and assumptions of the management of Camlin Fine Science Limited, which are expressed in good faith and in their opinion reasonable,
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