HFCL dropped 6.73% to Rs 63.75 after the company's consolidated net profit (from continuing operations) tumbled 41.45% to Rs 53.10 crore on 12.9% decline in net sales to Rs 1,051.02 crore in Q1 FY23 over Q1 FY22.
Profit before tax stood at Rs 70.95 crore in Q1 FY23, down 42.8% from Rs 124.05 crore in the same period a year ago. Total expenses declined 8.16% to Rs 999.06 crore in Q1 FY23 over Q1 FY22.
EBIDTA dropped by 31.94% to Rs 130 crore in Q1 FY23 from Rs 191 crore posted in Q1 FY22. EBIDTA margin decreased to 12.37% in Q1 FY23 as against 15.82% reported in Q1 FY22.
Commenting on the company's performance, Mahendra Nahata, managing director of HFCL said, "Despite macro-economic challenges and supply chain disruptions during last six months, HFCL is able to deliver steady financial performance with significant jump in export revenue by 167% compared to corresponding quarter of previous financial year. Share of revenue from products continue to rise and stands at 59% in Q1 FY23 as compared to 49% in Q4 FY22. Our order book stands at more than Rs 5,300 crores. Gross Margin has slightly improved as compared to last quarter due to easing input cost pressure and pass through to the customers. However, 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.
He further added, As we move forward, we are entering into a multi-year upcycle for Telecom and network implementation and we see huge opportunity in markets like India, Europe and US. FY23 is a year of transformation for HFCL as we will focus on creating capabilities and expanding capacities for sustainable profitable growth and leverage on the upcoming opportunities in telecom, 5G network implementation, defence and railways. Our mission is to transform as a technology-driven enterprise that innovates and manufactures for both domestic and global markets with an aim to become a multinational player in Optic Fiber Cables and telecom & networking products.
HFCL is a technology enterprise engaged in manufacturing of high-end transmission and access equipment, optical fiber, optical fiber cables (OFC). It is specialized in setting up modern communication network for telecom service providers, railways and defense.
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