HFCL share dips nearly 5% after reporting disappointing Q3 results

HFCL shares tanked nearly 5% to Rs 91.75 on the BSE at 9:20 am after reporting weak Q3 results.

HFCL Ltd announced a consolidated net profit of Rs 81 crore for the December quarter, a 5% decrease from the previous year. In the same quarter of the previous year, it was Rs 85.11 crore.

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The company’s consolidated revenue was Rs 1,215 crore, down from Rs 1,277 crore in the third quarter of the previous year, a 5% decrease.

For the period under review, HFCL’s EBITDA (earnings before interest, tax, depreciation and amortisation) fell marginally to Rs 174 crore, while margins remained at 14.32%.

HFCL said it has raised Rs 600 crore via QIP.

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In response to the company’s performance, Mahendra Nahata, HFCL MD, stated, “Although 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 following increased logistic costs and increase in fibre and semiconductor prices.”

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“In order to expand capacities and build network solution capabilities to tap the upcoming opportunities in telecom and defence, the company has raised Rs 600 crore 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 EPC to more products and looking for significant growth in the coming years. The company is also constantly working on expanding its global market access and has appointed global leaders in the US and Europe to boost its OFC and telecommunication product sales,” he added.