HFCL LIMITED 8, Commercial Complex, Masjid Moth, Greater Kailash - II, New Delhi - 110048, India Tel : (+9111) 3520 9400, 3520 9500 Fax: (+9111) 3520 9525 Web : www.hfcl.com

Email : [email protected]

HFCL/SEC/21-22

January 17, 2022

RE: Disclosures under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations").

Subject: Outcome of the meeting of the Board of Directors held on January 17, 2022.

Time of Commencement: 03:00 P.M. Time of Conclusion: 05:35 P.M.

Dear Sir(s)/ Madam,

This is in continuation to our earlier intimation dated January 07, 2022, with respect to the meeting of the Board of Directors of the Company, scheduled on January 17, 2022.

1. In terms of Regulation 30 read with Para B of Part A of Schedule III to the SEBI Listing Regulations and and SEBI Circular No. CIR/CFD/CMD4/2015 dated 9th September, 2015, we would like to inform all our stakeholders that the Board of Directors, at its meeting held today, has, inter-alia, accorded approval to the following consolidated capacity expansion and capital budget therefor:-

• a. Period within which the Capacity is to be added: June, 2023.
• b. Mode of financing: Internal accruals/Loans/QIP proceeds.
• c. Rationale: Increase in demand of Optical Fibre/Optical Fibre Cable in India as well as global market.
• 1. Further, In terms of Regulation 30 read with Para A of Part A of Schedule III to the SEBI Listing Regulations, we wish to inform you that the Board of Directors of the Company has, at its meeting held today, considered and approved the Un-audited Financial Results of the Company for the 3rd quarter and nine months ended December 31, 2021 of the Financial Year 2021-22, both

Regd. Office & Works: 8, Electronics Complex, Chambaghat, Solan-173213 (H.P.) Tel: (01792) 2,t 47 Fax: (01792 Corporate Identity Number: L64200HP1987PLC00746,iu_

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HFCL LIMITED 8, Commercial Complex, Masjid Moth, Greater Kailash - II, New Delhi -110048, India Tel : (+9111) 3520 9400, 3520 9500 Fax: (+9111) 3520 9525 Web : www.hfcl.com Email : [email protected]

on Standalone and Consolidated basis, in accordance with the provisions of Regulation 33 of the SEBI Listing Regulations.

The aforesaid results have been duly reviewed by the Audit Committee and M/s S. Bhandari & Co., Chartered Accountants and M/s Oswal Sunil & Company, Chartered Accountants, Statutory Auditors of the Company.

The copies of the aforesaid Financial Results along with the Limited Review Reports thereon, both on Standalone and Consolidated basis, are enclosed herewith.

Arrangements have also been made for publication of the aforesaid Financial Results in Newspapers, as per the requirements of Regulation 47 of the SEBI Listing Regulations.

We hereby submit a copy of the Press Release on the Un-audited Financial Results of the Company for the 3rd quarter and nine months ended December 31, 2021 of the Financial Year 2021-22, both on Standalone and Consolidated basis.

1. The Board of Directors has also approved the appointment of Mr. Baldev Singh Kashtwal, Company Secretary in Whole-time Practice having C.P. No. 3169 and Membership No. F3616 as the Secretarial Auditor of the Company for the financial year 2022-23.

You are requested to take the above information on records and disseminate the same on your respective websites.

Thanking you.

Yours faithfully,

(Manoj Baid) Senior Vice-President (Corporate) & Company Secretary

Encl.: 1. Un-audited Financial Results; 2. Limited Review Reports; 3. Press Release.

Press Release For immediate Release

HFCL's momentum of healthy performances continues

Strategic highlights

• Rs.600 crores raised via QIP with overwhelming response from the investors
• Attained 'Trusted Source' qualification from the National Security Council Secretariat (NSCS)
• Received approval under PLI Scheme for manufacturing Telecom and Networking Products

Financial highlights

• Q3FY22 Consolidated Revenue stands at ₹ 1215.21 crs, as compared to ₹ 1122.05 crs in Q2FY22 and ₹1277.48 crs in Q3FY21
• Q3FY22 Consolidated EBIDTA stands at ₹ 174.56 crs as compared to ₹ 173.20 crs in Q2FY22 and ₹176.53 crs in Q3FY21; EBIDTA margin stands at 14.32% as compared to 15.42% in Q2FY22 and 13.78% in Q3FY21.
• Q3FY 22 Consolidated PAT stands at ₹ 81.10 crs as compared to ₹ 85.94 crs in Q2FY22 and ₹ 85.11 crs in Q3FY21, PAT margin stands at 6.67 % as compared to 7.66% in Q2FY22 and 6.66% in Q3FY21

New Delhi, 17th January, 2022: HFCL Limited, India's leading telecom equipment manufacturer and technology provider announced its unaudited financial results for the third quarter and nine months ended December 31, 2021.

Consolidated Financial Highlights

On standalone basis, for the third quarter ended 31st December, 2021, the Company reported a revenue of ₹ 1107.36 crs, EBIDTA of ₹ 139.34 crs, PBT of ₹ 94.79 crs and PAT of ₹70.12 crs as against revenue of ₹ 1188.89 crs, EBIDTA of ₹ 149.28 crs, PBT of ₹ 97.29 crs and PAT of ₹ 75.04 crs for third quarter ended 31st December, 2020.

For the nine months ended 31st December, 2021, the Company reported consolidated revenue of ₹3544.13 crs, EBIDTA of ₹539.30 crs, PBT of ₹ 348.76 crs and PAT of ₹ 257.73 crs as against revenue of ₹ 3031.56 crs, EBIDTA of ₹ 396.92 crs, PBT of ₹ 218.62 crs and PAT of ₹ 159.77 crs for nine months ended 31st December, 2020.

For the nine months ended 31st December, 2021, the Company reported standalone revenue of ₹3220.48 crs, EBIDTA of ₹ 443.36 crs , PBT of ₹ 298.67 crs and PAT of ₹ 220.84 crs as against revenue of ₹ 2828.93 crs, EBIDTA of ₹ 336.68 crs , PBT of ₹ 186.62 crs and PAT of ₹ 140.36 crs for nine months ended 31st December, 2020.

Commenting on the Company's performance, Mr. Mahendra Nahata, Managing Director, HFCL said, "Although the demand in the economy is coming back gradually, we had a strong quarter with growth in revenues. The margins during the quarter got slightly impacted followed by increased logistic costs and increase in fiber and semi-conductor prices. In order to expand capacities and build network solution capabilities to tap the upcoming opportunities in Telecom and Defence sectors, the Company has raised ₹600 crores via QIP and I am thankful to all the investors for their overwhelming support and faith posed in HFCL's long term growth strategy. We are also well on track to shift our revenue mix from more of EPC to more of products and looking for significant growth in coming years. The Company is also constantly working on expanding its global market access and appointed global leaders in US and Europe to boost its OFC and Telecommunication product sales."

He further added that "The Board has considered and approved the Company's plan for expansion of Fiber manufacturing capacities from 10mn fkm p.a. to 22 mn fkm p.a. and consolidated OFC manufacturing capacities from 24.75 mn fkm p.a. to 34.75 mn fkm p.a. with an overall capital outlay of ~Rs.425 crores. We remain optimistic about the outlook of the sector. The Government's approval for our PLI scheme candidature will help us in improving our competitiveness, collaborate with new players and venture into new geographies."

Mr. Nahata further added that,"HFCL has secured approval from NSCS as a 'Trusted Source' and we are fully committed to continue serving our TSP partners. The development will lead to cement HFCL's position further in the Telecom sector thereby amplifying the growth opportunities for HFCL. Our inclusion in the select list as one of the trusted sources, is a distinguished achievement and reinforces our commitment to delivering Make in India world-class products/solutions and contribute to our Hon'ble PM's vision of an Atmanirbhar Bharat."

About HFCL

HFCL Limited is a leading technology enterprise engaged in manufacturing of high-end Transmission and Access Equipment, Optical Fiber, Optical Fiber Cables (OFC) and is specialized in setting up modern communication network for Telecom Service Providers, Railways and Defence.

The Company has state-of-the-art Optical Fiber and Optical Fiber Cable manufacturing plants at Hyderabad, Optical Fiber Cable manufacturing plant in Goa and in its subsidiary i.e. HTL Limited at Chennai along with FRP and ARP Rod manufacturing plant in its subsidiary at Hosur.

The Company's in-house Centre for Excellence in Research located at Gurgaon & Bengaluru along with invested R&D Houses and other collaborators at different locations in India and abroad, innovate futuristic range of technology products and solutions. Some of the newly developed products through R&D are Wi-Fi Systems, Unlicensed Band Radios, Switches, Electronic Fuses, Electro optic devices, and Video Management Systems. There is a suite of products under development, which include Software Defined Radios, Routers, PON, 5G Transport and Radio products, Wi-Fi 6 access points, Point-to-multipoint Radios and Ground Surveillance Radars among others.

Visit www.hfcl.com for more information.

For further details please contact:

HFCL Limited Manoj Baid | Amit Agarwal

Email: [email protected] [email protected]

Contact: 011 3520 9400

Date: 17th January, 2022 Place: New Delhi

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