This Telecom stock deals 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 expects BharatNet Orders inflow and Transition towards product led revenue.
Share Price Movement
With a market capitalization of Rs. 14,431.06 Crores, the shares of HFCL Limited were up by 0.77 percent in the day’s trade touching a day’s high of Rs. 100.74 per share. The stock reiterated from the day’s high and were trading at Rs. 100.35 which is 0.38 percent higher than the previous closing price of Rs. 99.97 apiece. It has delivered a negative return of 5 percent which has underperformed the Nifty Index in the past year.
Company’s Outlook
As per the recent concall, The company expects to receive reasonable orders from BharatNet which can aid in improving capacity utilisation and profitability. Further, they expect a significant amount of contracts to be received for several years.
The company recently established a new defence manufacturing Unit in Hosur relating to Make in India and Atmanirbhar Bharat initiatives. They expect to receive small orders in the current quarter to build a larger order book.
They are planning to transition towards a product-led revenue model while targeting a mix of 70 percent product revenue and the remaining 30 percent from EPC revenue. They claim to hold the largest market share in India for optical fiber cable with a 90 percent market share for the unlicensed band radio.
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.
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 Q3FY25, The company’s order book stood at approx Rs. 10,410 crores out of those Rs. 4,196 crores from Network services, Rs. 3,689 crores from Operations and Maintenance, and Rs. 2,525 crores from Products. The order book comprises Rs. 8,527 crore from Government and the remaining Rs. 1,883 crore from Private Institutions.
Written By Santhosh S
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