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Telecom infra firm HFCL's shares fall 8% on low profits in Q3FY22
New Delhi, Jan 18 - Domestic telecom equipment and infrastructure developer HFCL's shares slipped nearly 8 per cent on Tuesday after the company reported a decline in consolidated profit during Q3FY22.
On Monday, HFCL announced that its consolidated profit declined 4.7 per cent to Rs 81.1 crore during the quarter, mainly due to increased logistics costs as well as of fiber and semiconductors.
During the same quarter last fiscal, the company had posted a profit after tax of Rs 85.11 crore.
Revenue declined 4.86 per cent during the quarter to Rs 1,215.21 crore compared to Rs 1,277.48 crore in the same period of corresponding fiscal.
The company's EBITDA margins, however, improved marginally during the quarter to 14.32 per cent. In Q3FY21, it was 13.78 per cent.
On Tuesday, the shares of the company settled at Rs 89.20, down 7.4 per cent from the previous close. Over the past one-year period, they, however, rose 172 per cent.
"Although the demand in the economy is coming back gradually, we had a strong quarter with growth in revenues. The margins during the quarter got slightly impacted followed by increased logistic costs and increase in fiber and semiconductor prices," HFCL Managing Director Mahendra Nahata said in a regulatory filing, which included the earnings data.
"We are also well on track to shift our revenue mix from more of EPC to more of products and looking for significant growth in coming years. The Company is also constantly working on expanding its global market access and appointed global leaders in US and Europe to boost its OFC and telecommunication product sales."
Besides, the firm approved the plan for expansion of fiber manufacturing capacities from 10 million fibre kilometre per annum to 22 million fibre kilometre and consolidated optical fibre cable manufacturing capacities from 24.75 million fibre kilometre annually to 34.75 million fibre kilometre with an overall capital outlay of Rs 425 crore.
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