This Telecom stock dealing in the business of infrastructure related to telecom and enabler with active interest focused on telecom infrastructure development, integration of systems, and supply and manufacturing of high-end telecom equipment, Optical Fiber, and others in focus after the company reported Q3FY25 results and exempted from anti-dumping duties.
Share Price Movement
With a market capitalization of Rs. 14,392.10 Crores, the shares of HFCL Limited were up by 1.16 percent in the day’s trade touching a day’s high of Rs. 102.72 per share. The stock reiterated from the day’s high and was trading at Rs. 99.76 which is 1.75 percent lower than the previous closing price of Rs. 101.54 apiece. It has delivered a return of 1 percent which has underperformed the Nifty Index in the past year.
Q3YF25 Financial Highlights
The company’s stock was in focus after reporting financial results for the quarter ending December 2024, HFCL consolidated revenue from operations has declined by 1.97 percent year on year from Rs. 1,032.31 crore in Q3FY24 to Rs. 1,011.95 crore in Q3FY25 and declined by 7.46 percent quarter on quarter from Rs. 1,093.61 crore in Q2FY25.
The company’s consolidated net profit has declined by 11.94 percent year on year from Rs. 82.43 crores in Q3FY24 to Rs. 72.58 crores in Q3FY25. As compared to Q2FY25, the company’s net profit has declined by 1 percent quarter on quarter from Rs. 73.33 crore.
Business Segments
They earn 57.55 percent of the operational revenue from Telecom products and 42.45 percent from Turnkey Contracts and Services for the December 2024 quarter. Despite, the higher revenue from Telecom, Turnkey projects contribute higher operating profits and thus command a higher margin.
Update on the Poland Facility
The board of directors on February 21, 2024, approved setting up an Optical Fiber Cable (OTC) manufacturing facility in Poland to enter into the European market. In June 2024, the European Commission (EC) mentioned that HFCL was not involved in the anti-dumping of OTC and thus the company was exempted from other Indian OFC manufacturers. Further, the EC on December 16, 2024, announced that anti-dumping duty on all Indian OFC manufacturers with HFCL was exempted.
Based on these developments in the recently concluded meeting, the board of directors has decided to temporarily put on hold the planned facility in Poland. The demand for the products to be met from India while catering to the European market can strengthen its advantage over others.
Company Overview & Order Book
HFCL is an Indian technology company that specializes in telecommunications equipment, optical fiber cables, and digital network solutions while serving clients in over 30 countries for 30 years.
As of Q2FY25, The company’s order book stood at approx Rs. 6,151 crores out of those Rs. 2,884 crores from Network services, Rs. 2,010 crores from Operations and Maintenance, and Rs. 1,257 crores from Products. The order book comprises Rs. 4,183 crore from Government and the remaining Rs. 1,968 crore from Private Institutions.
Written By Santhosh S
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