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
| HFCL Ltd | |||||
| 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.
