HFCL reports 81% dip in net profit to Rs 21.3 crore for June quarter

Domestic telecom gear maker HFCL on Monday posted an 81 per cent dip in consolidated net profit to Rs 21.34 crore in the first quarter ended June 30.

The company had posted a net profit of Rs 117.12 crore in the corresponding period of the previous financial year, it said in a BSE filing.

The firm's total income declined about 48 per cent to Rs 703.7 crore during the April-June 2020 period, compared with Rs 1,349.04 crore a year ago.

During the quarter, HFCL decided to shift the plant and machinery of Solan in Himachal Pradesh, facilities and operations thereof to its manufacturing facility in Hyderabad.

"Further, in order to ensure continuity of the job of the employees currently based at Solan, the company also considered to offer the continued employment either at Hyderabad or at such other places where the project works are being executed," HFCL Managing Director Mahendra Nahata said in the financial report.

He added that the company also introduced a voluntary retirement scheme to those employees who are finding it difficult to relocate to Hyderabad or any other location.

The company's shares on Monday rose 7.27 per cent to Rs 16.50 apiece on the BSE.