HFCL Q3 profit down 5pc to Rs 81 crore
Domestic telecom equipment maker HFCL on Monday posted a 4.7% drop in its consolidated profit to Rs 81.1 crore for the third quarter ended December 31, 2021, mainly due to higher component prices , especially semiconductors. The company had recorded an after-tax profit of Rs 85.11 crore in the same period a year ago. Revenue decreased by 4.86% in the quarter to Rs 1,215.21 crore from Rs 1,277.48 crore in the same quarter of 2020-21. ”Although demand in the economy is gradually returning, we had a strong quarter with revenue growth. Margins in the quarter were slightly impacted, followed by higher logistics costs and higher fiber and semiconductor prices,’ HFCL chief executive Mahendra Nahata said in a statement. communicated. During the quarter, the company raised Rs 600 crore through qualified institutional placement to expand its capabilities and develop network solutions capabilities to exploit upcoming opportunities in the telecommunications and defense sectors. “The company is also continuously working to expand its access to the global market and has appointed global leaders in the United States and Europe to boost its sales of OFC and telecommunications products,” Nahata said. He said the company’s board approved the plan to expand fiber manufacturing capacity from 1 crore fiber kilometer (fkm) per year to 2.2 crore fkm and cable manufacturing capacity to consolidated optical fiber (OFC) from 2.47 crore fkm per annum to 3.47 crore fkm per annum with an overall outlay of around Rs 425 crore. ”We remain optimistic about the outlook for the sector. Government approval for our application for the PLI program will help us improve our competitiveness, collaborate with new players and venture into new geographies,” he added.
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