Telecom equipment and optical fibre maker HFCL has posted a 4.5 per cent year-on-year (YoY) increase in net profit for the second quarter ending September 30, 2024, bringing its profit to Rs 73 crore.
The company's consolidated revenue saw a slight decline of 1.61 per cent, falling to Rs 1,094 crore from the previous year's Rs 1,112 crore. Sequentially, revenue also dropped by 5.58 per cent from Rs 1,158 crore recorded in the previous quarter.
The company reported strong growth in earnings before interest, taxes, depreciation, and amortisation (EBITDA), which rose 14.72 per cent to Rs 172 crore. On a standalone basis, HFCL posted revenue of Rs 1,012 crore, with EBITDA at Rs 161 crore, profit before tax (PBT) at Rs 104 crore, and profit after tax (PAT) at Rs 75 crore.
HFCL’s Managing Director, Mahendra Nahata, attributed the company’s steady performance to its ability to manage challenging market conditions, particularly the global dip in demand for optic fiber cables. He noted that the monsoon season also impacted project execution in several parts of India, pushing some revenues into the next quarter.
Despite these challenges, Nahata highlighted positive developments, including growing global interest in optic fiber cables, which he believes signals an early recovery.
“The company has started receiving global enquiries for optic fiber cables indicating early signs of recovery in the coming quarters. Going ahead, our focus on launching new products, conscious shift towards margin-accretive products, increasing our share of private customers and expanding our international business will definitely result in improved revenue and profitability,” added Nahata.
