A strong inflow of orders backed by ease in supply chain challenges and low input costs helped HFCL to report a strong sequential earnings performance in the September quarter. The company’s consolidated net profit rose 59% q-o-q (quarter-on-quarter) to Rs 84 crore, and its revenue from operations rose 11.7% q-o-q toRs 1,173 crore.
On a year-on-year basis, the net profit was flat whereas revenue rose 4.6%. The company manufactures optic fibre cables and telecom equipment such as Wi-Fi, ethernet switches, point-to-point unlicensed band radios and even provide cloud-based network management systems.
“With the leap in technology, higher backward integration, capacity expansion in OFC (optical fibre cable) business, production of next-gen equipment and expanding global footprints, we are well on our mission to transform as a technology-driven enterprise that innovates and manufactures for both domestic and global markets with an aim to become a Product led global player in Optic Fibre Cables and telecom equipment and solutions,” said Mahendra Nahata, managing director of the company.
Owing to lower cost of raw material and higher revenues, the company’s margins calculated on earnings before interest, taxes, depreciation, and amortisation expanded by 253 basis points sequentially to 14.88% in the September quarter.
During the quarter, the company had won orders from companies such as BSNL, Reliance Retail, Reliance Projects & Property Management Services, among others. As of September end, the company’s order book stood at over Rs 5,000 crore, it said.