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Himachal Futuristic jumps after strong Q1 numbers

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Himachal Futuristic Communications was up 7.67% to Rs 21.75 at 10:16 IST on the BSE after the company announced strong Q1 June 2019 result after market hours yesterday, 10 July 2019.

Meanwhile, the S&P BSE Sensex was up by 155.72 points, or 0.40% to 38,712.76.

On the BSE, 6.30 lakh shares were traded in the counter so far compared with average daily volumes of 2.60 lakh shares in the past two weeks. The stock had hit a high of Rs 22.20 and a low of Rs 21.35 so far during the day. It hit a 52-week high of Rs 31.35 on 11 July 2018 and a 52-week low of Rs 17.20 on 10 December 2018.

On a consolidated basis, Himachal Futuristic Communications' net profit rose 139.77% to Rs 110.39 crore on a 23.38% rise in the net sales to Rs 1342.73 crore in Q1 June 2019 over Q1 June 2018.

The company said that the EBITDA margin rose to 14.39% in Q1 June 2019 from 8.70% in Q1 June 2018.

The company's managing director, Mahendra Nahata, said that the holistic strengthening of organizational capabilities undertaken over the last 7-8 quarters is beginning to show the results. He further added that the company is focused on new products and technologies which shall open additional growth avenues and ensure sustainability.

In a separate announcement the company said that it had reviewed the actual utilization of funds received from the allotment of convertible warrants/equity shares upon conversion of convertible warrants. The company had allotted 4.50 crore convertible warrants at a price of Rs 16 per warrant, aggregating to Rs 72 crore, on preferential basis to promoters/promoter group company and non-promoter person(s)/entity(s).

The company has received the full proceeds of Rs 72 crore under the preferential issue and the said proceeds have been fully utilized during the quarter ended 30 June 2019 and that there was no deviation in the utilization of proceeds.

In another announcement, the company said that CARE Ratings has re-affirmed the credit rating for the Bank Loan facilities of the company worth Rs 1,914.30 crore. CARE Ratings reaffirmed its rating of CARE A-, Stable on the long term bank facilities worth Rs 515.94 crore. It also reaffirmed its rating of CARE A2+ on short term bank facilities worth Rs 1398.36 crore. CARE Ratings reaffirmed its rating of CARE A-, Stable on the Long Term Instrument - Non-Convertible Debentures worth Rs 33.73 crore.

CARE Ratings said that the reaffirmation of the ratings assigned to the bank facilities of Himachal Futuristic Communications (HFCL) continue to derive strength from its experienced promoters and management team, long track record of operations and strategic business relationship with Reliance Jio lnfocomm (RJIL).

Himachal Futuristic Communications announced after market hours on 9 July 2019, that it received a purchase order worth Rs 186.90 crore approximately, from BSNL, for setting up of the optical transmission backbone network for armed forces under the Network for Spectrum Programme (NFS) of the Government of India.

Himachal Futuristic Communications is a telecom infrastructure developer, system integrator and manufacturer of high-end telecom equipment and optical fibre cables, having its manufacturing facilities at Solan, Goa and Chennai.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 11 2019. 10:19 IST
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