HFCL Q3FY22 consolidated PAT drops 4.71% at Rs81.10cr; stock tumbles 4%

18 Jan 2022 , 01:34 PM

HFCL Limited, India’s leading telecom equipment manufacturer and technology provider announced its unaudited financial results for the third quarter and nine months ended December 31, 2021.

For the third quarter ended 31st December 2021, the Company reported Q3FY22 Consolidated Revenue stands at Rs1215.21cr, 4.9% as compared to Rs1122.05cr in Q2FY22 and Rs1277.48cr in Q3FY21.

Q3FY22 Consolidated EBIDTA came at Rs174.56cr as compared to Rs173.20cr in Q2FY22 and Rs176.53cr in Q3FY21. EBIDTA margin stands at 14.32% as compared to 15.42% in Q2FY22 and 13.78% in Q3FY21.

HFCL Ltd is currently trading at Rs92.30 down by Rs4.1 or 4.25% from its previous closing of Rs96.40 on the BSE. The scrip opened at Rs90.50 and has touched a high and low of Rs93.10 and Rs88.10 respectively.

Q3FY 22 Consolidated PAT stands at Rs81.10cr, down 4.71% as compared to Rs85.94cr in Q2FY22 and Rs85.11cr in Q3FY21, PAT margin stands at 6.67% as compared to 7.66% in Q2FY22 and 6.66% in Q3FY21.

Commenting on the Company’s performance, Mr. Mahendra Nahata, Managing Director, 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 Rs600cr 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 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,” Mahendra Nahata added.

He further added that “The Board has considered and approved the Company’s plan for expansion of Fiber manufacturing capacities from 10mn fkm p.a. to 22 mn fkm p.a. and consolidated OFC manufacturing capacities from 24.75 mn fkm p.a. to 34.75 mn fkm p.a. with an overall capital outlay of ~Rs425cr. We remain optimistic about the outlook of the sector. The Government’s approval for our PLI scheme candidature will help us in improving our competitiveness, collaborate with new players and venture into new geographies.”

Mr. Nahata further added that, “HFCL has secured approval from NSCS as a ‘Trusted Source’ and we are fully committed to continue serving our TSP partners. The development will lead to cement HFCL’s position further in the Telecom sector thereby amplifying the growth opportunities for HFCL. Our inclusion in the select list as one of the trusted sources, is a distinguished achievement and reinforces our commitment to delivering Make in India world-class products/solutions and contribute to our Hon’ble PM’s vision of an Atmanirbhar Bharat.”