HFCL net rises 62% to Rs 112 cr on strong optical fibre demand

Company's EBIDTA rises by 4.30% to Rs 91.54 cr

Himachal Futuristic Communications Limited (HFCL), which supplies and lays optical fibres for telecom and internet service providers such as Airtel, Aircel and MTS, has posted Rs 112.39 crore profit after tax in the April-June period, a rise of 62% from last year same period as demand for optical fibre surged and because of one-time gain from past investments.

In the same period, HPCL revenue went up by little over 1% to Rs 625.37 crore, compared with Rs 618.82 crore posted last year, supported by demand from optical fibre business as well turnkey services it provides for satellite and radio communication, CDMA mobile networks, and spectrum management solution.

During the period, the company earned Rs 38.25 crore as one time interest from investment made sometime ago, which contributed about a third in improving its net profit. Besides, an impressive nearly three-fold jump in exports revenue at 32 crore also boosted revenue earnings during the quarter, the company said.

The company's earnings before interest, tax, depreciation and amortization (EBIDTA) rose by 4.30% to Rs.91.54 crore in the first quarter, as compared to Rs 87.77 crore in the corresponding quarter of the previous fiscal. 

"Exports is going to be key thrust area going forward. Due to cost control and efficient raw material purchase, we have seen improvement in margins," said Mahendra Nahata, managing director of HFCL. Optical fibre cables are made up of glass and plastic and hence movements in crude oil prices affect the raw material cost.