HFCL Q3 net profit rises 67% to Rs 70 crore

Home-grown telecom gear maker HFCL today reported a jump of 66.76 per cent in its standalone net profit at Rs 70.16 crore for the three months period ended December 31, 2015.
Himachal Futuristic Communications Limited (HFCL) had posted a net profit of Rs 42.07 crore in the same period a year ago.
"We have been consistently maintaining revenue and profits in the current fiscal. Optical Fibre Cables and Turnkey Projects have been the major contributors to our overall growth," HFCL Managing Director Mahendra Nahata said in a statement.
The company said that the profits were lower in the corresponding quarter of previous financial year due to write -off of bad debts amounting to Rs 34 crore.

The company manufactures telecom equipment and optical fibre cables, executes telecom turnkey contracts and provides services relating thereto.
The net sales of the company declined by 1.29 per cent to Rs 592.74 crore during the reported quarter from Rs 600.5 crore it posted in the corresponding period of 2014-15.

"Many of our orders though executed are still in the billing stage and have spilled over to the next quarter causing marginally low revenues for this quarter. However, overall performance has been very satisfactory," Nahata said.
HFCL has an order-book of around Rs 2,800 crore till date, the statement said.
"Our exports percentage has also seen an increase and going forward we are aiming to push our exports business significantly," Nahata said.

He added that the company recently launched manufacturing facility of its subsidiary company HTL Ltd in Chennai which has started trial production.
There was also reduction in employee benefits expenses of about 36 per cent during the period.
HFCL said: "Wish to inform that during last quarter ended September 30, 2015, some of the employees were shifted to client side for operation and maintenance (on completion of roll-out), resulting into higher employee cost on account of terminal benefits (Gratuity, leave encashment and other claims) during that quarter.
"However, in this quarter, there has been an increase in employee headcount."
Shares of HFCL closed 1.01 per cent up at Rs 20 apiece on BSE.