HFCL Q1 profit falls 42 pc to Rs 53.1 crore

Domestic telecom gear maker HFCL on Friday posted a 41.76 per cent decline in consolidated profit to Rs 53.1 crore in the first quarter ended June 30. HFCL had posted a net profit of Rs 91 crore a year ago, the company said in a statement.

The consolidated revenue declined 12.92 per cent to Rs 1,051 crore during the reported quarter from Rs 1,207 crore the year-ago quarter.

“Revenue and consequently profitability during the quarter got impacted due to spill over of service billing followed by non-availability of required infrastructure from the customer-end and also continued shortage of semiconductors,” HFCL managing director Mahendra Nahata said in the statement.

He said that despite macro-economic challenges and supply chain disruptions during the last six months, HFCL was able to deliver steady financial performance with a significant jump in export revenue by 167 per cent compared to the corresponding quarter of the previous financial year.

“Share of revenue from products continues to rise and stands at 59 per cent in the first quarter of the financial year (FY) 2023 as compared to 49 per cent in the fourth quarter of FY22. Our order book stands at more than Rs 5,300 crore. Gross margin has slightly improved as compared to last quarter due to easing input cost pressure and pass through to the customers,” Nahata said.