HFCL net profit rises 61% YoY in Q2 FY22

HFCL reported 61.18% jump in consolidated net profit to Rs 85.94 crore on a 6.42% rise in revenue from operations to Rs 1122.05 crore in Q2 FY22 over Q2 FY21.

As compared with Q1 FY22, the company's net profit and revenue, however, are lower by 5.23% and 7.03%, respectively.

EBIDTA increased by 25.99% to Rs 173.20 crore in Q2 FY22 from Rs 137.47 crore in Q2 FY21. EBIDTA margin was at 15.44% as on 30 September 2022 as against 13.04% as on 30 September 2021.

The company said that capex projects across optical fibre, optical fibre cable and FTTH cable are headed towards on time commissioning, current capacity utilisations at optimal levels. Enquiry and order pipeline have witnessed an uptick; outstanding order book of Rs 5821.75 crore ensures sustainable revenue visibility, it added.

Mahendra Nahata, managing director, HFCL, said, "We had a strong quarter with growth in revenues, expansion in margins and robust cash generation as compared to Q2 FY21. Our capacity utilisation remained at optimum level across all the manufacturing facilities.

Our conscious shift towards margin and cash flow accretive components of telecom products and capital efficient projects would continue to strengthen our profitability ratio while our holistic R&D focus would keep us ahead of the curve of technological advancements.

HFCL is technology enterprise engaged in manufacturing high end transmission and access equipment, optical fibre and optical fibre cables and creating communication networks for telecom service providers, railways, defence and smart city & surveillance projects.

The scrip fell 1.02% to currently trade at Rs 77.90 on the BSE.

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