In early trading on October 20, HFCL experienced a 4% decline after revealing lackluster earnings for the July-September quarter. The telecom equipment manufacturer reported a significant 15.2% decrease in net profit, plummeting from Rs 82 crore to Rs 69 crore compared to the previous fiscal year.
Additionally, the company’s overall revenue, indicated by the topline figure, slumped by 5.3% year-on-year, settling at Rs 1,111.50 crore in the September quarter.
Mahendra Nahata, the managing director of HFCL, explained that the decline in product revenue was due to decreased demand for optical fibre cables and telecom and networking products from telecommunications companies during this quarter. Nahata attributed this temporary weakness to an inventory surplus held by major operators, leading to an overall reduction in revenue both domestically and in international markets.
By 1:11 pm, HFCL shares were trading at a 3.84% decrease, valued at Rs 70.20.
