HFCL Q3 PAT sharply up 86.7% yoy at Rs85.11cr on robust OPM

HFCL Ltd reported 49.7% growth in Dec-20 quarter revenues at Rs1277.48cr with growth in telecom products vertical and turnkey contracts vertical.

Jan 14, 2021 02:01 IST India Infoline News Service

HFCL Ltd reported 49.7% growth in Dec-20 quarter top line revenues yoy at Rs1277.48cr. The revenues showed a sharp growth across both its verticals viz. the telecom products vertical and the turnkey contracts vertical.

For the Dec-20 quarter, the operating profits were sharply up 82.1% at Rs155.35cr. This was on the back of higher revenues and better margins on high-end telecom products. As a result, operating margin or OPM expanded from 10.00% in the Dec-19 quarter to 12.16% in Dec-20 quarter.

Profit after tax (PAT) for the Dec-20 quarter was up 86.73% at Rs85.11cr on better operating metrics. PAT margins for the Dec-20 quarter only grew from 5.34% in Dec-19 to 6.66% in Dec-20. The huge equity base continues to be an overhang on the stock.

Financial highlights for Dec-20 compared yoy and sequentially

Rs in Crore Dec-20 Dec-19 YOY Sep-20 QOQ
Total Income (Rs cr) ₹ 1,277.48 ₹ 853.47 49.68% ₹ 1,054.32 21.17%
Operating Profit (Rs cr) ₹ 155.35 ₹ 85.32 82.08% ₹ 117.00 32.78%
Net Profit (Rs cr) ₹ 85.11 ₹ 45.58 86.73% ₹ 53.32 59.62%
Diluted EPS (Rs) ₹ 0.64 ₹ 0.36 ₹ 0.40
OPM 12.16% 10.00% 11.10%
Net Margins 6.66% 5.34% 5.06%

Key takeaways from the Dec-20 quarter results
  • The company derives nearly 75% of its revenues from turnkey contract execution and only 25% from telecom products. The telecom products business has grown sharply in the Dec-20 quarter.
  • HFCL has a current order book position of Rs.7313 crore with applications for its products across telecom, railways and the defence sector.

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