HFCL Reports Q4 Revenue Decline of 39% to ₹800 Crore, Loss of ₹83 Crore

HFCL reported a 39% YoY decline in revenue from operations at ₹800 crore in Q4FY25 and a net loss of ₹83 crore, compared to a net profit of ₹109 crore in the same quarter last year. The decline in revenue was attributed to the challenging industry conditions and the company's efforts to streamline its operations.

Himanshu Thakur, New Delhi

May 22, 2025

Telecom manufacturer HFCL has reported a significant decline in its financial performance for the fourth quarter of financial year 2024-25 (Q4FY25). The company reported a 39% year-on-year (YoY) decline in revenue from operations, amounting to ₹800 crore, compared to ₹1,326 crore in the same quarter last year [1]. This decline was accompanied by a net loss of ₹83 crore, in contrast to the net profit of ₹109 crore reported in the corresponding quarter of the previous financial year.

The company attributed the decline in revenue to challenging industry conditions and its efforts to streamline operations. HFCL's performance was impacted by a subdued demand environment and sharp escalation in input costs, which have been a common challenge for many companies in the sector [2].

Despite the challenging conditions, the company's focus remains on enhancing profitability and launching innovative products aimed at the retail and MSME segments. The company's Gross Written Premium (GWP) rose by 8.14% YoY, indicating a strong performance in the insurance sector [3].

For the full year, HFCL's net profit declined by 12.86% to ₹988 crore in FY25 from ₹1,129 crore in FY24, largely due to provisions made towards legacy non-moving balances. The company made a provision of ₹802 crore during the year, which has impacted the reported Profit After Tax and Return on Equity (ROE) in FY25 [3].

HFCL's performance in Q4FY25 highlights the challenges faced by companies in the telecom and insurance sectors due to industry conditions and operational streamlining efforts. The company's focus on enhancing profitability and launching innovative products suggests a strategic approach to navigating these challenges.

References:

[1] Himanshu Thakur. "HFCL Q4 Results: Revenue Declines 39% to ₹800 Crore, Loss at ₹83 Crore." Business Standard. May 22, 2025. https://www.business-standard.com/companies/quarterly-results/hfcl-q4-results-revenue-declines-39-to-800-crore-loss-at-83-crore-125052201712_1.html

[2] Ishita Ayan Dutt. "ITC Q4FY25: Adjusted Profit Up 3% on Subdued Demand." Business Standard. May 22, 2025. https://www.business-standard.com/companies/quarterly-results/itc-q4fy25-adjusted-profit-up-3-pc-on-subdued-demand-125052201717_1.html

[3] BS Reporter. "New India Assurance Q4FY25: Profit Down 2% YoY, GWP Rises 8%." Business Standard. May 19, 2025. https://www.business-standard.com/companies/quarterly-results/new-india-assurance-q4fy25-profit-down-2-percent-premium-rises-125051901701_1.html