HFCL-FINANCIAL UNAUDITED RESULTS FOR QTR AND NINE MONTHS ENDED DEC 2018

Financial Highlights for the third quarter and nine months ended 31st December, 2018:

Quarter ended 31st December, 2018

a. Revenue up by 54.73% to Rs.l105.64 crores as compared to Rs.714.56 crores in Q3 of FY 2018;

b. EBIDTA and PBT increased to Rs.106.75 crores and Rs. 75.26 crores as compared to Rs. 74.77 crores and Rs.S4.23 crores respectively in Q3 of FY 2018;

c. EBIDTA margin stood at 9.66% as compared to 10.46% in quarter ended 3Pt December, 2017;

d. PBT margin stood at 6.81% as compared to 7.59% in quarter ended 31st December, 2017;

Nine Months ended 31st December, 2018

a. Nine Months Revenue is up by 53.05% to Rs.3275.35 crores as compared to Rs.2140.02 crores in nine months ended 31st December, 2017•

b. Nine Months EBIDTA and PBT increased to Rs.278.60 crores and Rs. 206.48 crores as compared to Rs. 195.62 crores and Rs.134.83 crores respectively in nine months ended 3Pt December, 2017;

c. Nine Months EBIDTA margin stood at 8.51% as compared to 9.14% in nine months ended 3Pt December, 2017;

d. PBT margin remained same at 6.30% during nine months ended 31st December, 2018;

e. Nine Months PAT up by 37.65% to Rs.132.54 crores as compared to Rs.96.29 cores in nine months ended 3Pt December, 2017;

f. Book value per equity share increased to Rs.l0.81 as compared to Rs.9.34 in nine months ended 3Pt December, 2017;

Robust Order book of more than Rs.llOOO crores approx. including Advance Purchase Orders worth Rs.3750 crores approx. as at 31st January, 2019.

Post implementation of Expansion Programme, the annual capacity of Optical Fibre Cable Manufacturing will increase by October,2019: a) From 8 Mn FKM to 18.5 Mn FKM on standalone basis; b) From 12 Mn FKM to 25.5 Mn FKM on consolidated basis (including capacity of subsidiary company). Manufacturing of Optical Fibre

(New Green Field Project) with annual capacity of 6.4 Mn FKM is expected to be operational by November, 2019.

This backward integration will enhance the overall operating margins of Optical Fibre Cable Manufacturing. Focused on delivering non-dilutive growth with sharp focus on improving Return on Equity and Free Cash Flow.