HFCL shares drop 6% after subdued Q2FY25 earnings; check details here

HFCL share price dropped 5.96 per cent at Rs 117.51 per share on the NSE in Monday’s intraday trade. HFCL stock price dipped after the company posted muted growth in the second quarter of the financial year 2024-25 (Q2FY25).

HFCL’s consolidated revenue declined by 1.62 per cent year-on year (Y-o-Y) to Rs 1,094 crore from Rs 1,112 crore recorded in the same quarter last year. Sequentially, the revenue fell 5.5 per cent compared to Rs 1,158 crore recorded in Q1FY25.

On the other hand, the company’s consolidated net profit grew by 4.28 per cent to Rs 73 crore from Rs 70 crore Y-o-Y. On a quarterly basis, the net profit was down 33.73 per cent from Rs 111 crore registered in Q1FY25. 

The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) increased by 19.54 per cent to Rs 172 crore from Rs 150 crore Y-o-Y, with the Ebitda margin improving to 15.71 per cent from 13.47 per cent.

HFCL is a versatile telecom infrastructure enabler, actively engaged in telecom infrastructure development, system integration, and the manufacture and supply of high-end telecom equipment and Optical Fiber Cable (OFC). Its manufacturing facilities are situated in Solan (Himachal Pradesh), Salcete (Goa), and New Delhi. 

Initially focused on manufacturing transmission equipment, the company has since broadened its product portfolio to include access equipment, optical fibre cable accessories, and terminal equipment.

The company has a total market capitalisation of Rs 17,091.34 crore. Its shares are trading at a price to earnings multiple of 48.47 times and at an earning per share of Rs 2.60. 

At 11:03 AM, the stock price of the company declined by 4.77 per cent at Rs 119.01  a piece on the BSE. By comparison, the NSE’s Nifty50 was down 0.23 per cent to 24,723 level.