HFCL Shares Drop 4% After Dismal Q2 Earnings Due to Softening Demand

20 Oct 2023 , 02:49 PM

HFCL’s shares dropped approximately 4% in early trading on October 20 following disappointing Q2 earnings. The company reported a 15.2% decrease in net profit, down to Rs 69 crore from Rs 82 crore last year. Revenue declined by 5.3% year-on-year to Rs 1,111.50 crore during the September quarter.

Softening demand for optical fiber cables and telecom products from telcos contributed to the decline. HFCL’s management believes the weakness is temporary and attributed it to an inventory build-up with major operators.

Despite Q2’s performance, the company anticipates improved results in the coming quarters, driven by the growth expectations in India’s telecom industry, particularly the shift to 5G networks.

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