HFCL corrects after Q3 PAT slips 5% YoY to Rs 81 cr

18 Jan 2022 , 09:29 AM

On a consolidated basis, EBITDA slipped 1.14% to Rs 174.56 crore in Q3 December 2021 from Rs 176.53 crore in Q3 December 2020. However, EBITDA margin improved 14.32% in Q3 FY22 as against 13.78% in Q3 FY21. PAT margin rose to 6.67% in Q3 December 2022 as compared to 6.66% in Q3 December 2021.

Meanwhile, during the quarter, Rs 600 crore were raised via QIP with the investors. The company attained Trusted Source qualification from the National Security Council Secretariat (NSCS). HFCL also bagged an approval under PLI scheme for manufacturing Telecom and Networking Products.

Commenting on the companys performance, Mahendra Nahata, the managing director (MD) of 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 Rs 600 crore via QIP and I am thankful to all the investors for their overwhelming support and faith posed in HFCLs 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 iterated that, The board has considered and approved the companys plan for expansion of optical fiber manufacturing capacities from 10 million fkm p.a. to 22 million fkm p.a. and consolidated OFC manufacturing capacities from 24.75 million fkm p.a. to 34.75 million fkm p.a. with an overall capital outlay of Rs 425 crore. We remain optimistic about the outlook of the sector. The Governments approval for our PLI scheme candidature will help us in improving our competitiveness, collaborate with new players and venture into new geographies.

The rationale behind the expansion is to cater to an increasing demand of optical fibre/ optical fibre cable in India as well as global market. The expansion is expected to be completed by June 2023.

HFCL is a leading technology enterprise engaged in manufacturing of high-end transmission and access equipment, optical fiber, optical fiber cables (OFC). It is specialized in setting up modern communication network for telecom service providers, railways and defence.

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