HFCL Ltd reported 49.7% growth in Dec-20 quarter top line revenues yoy at Rs1277.48cr. The revenues showed a sharp growth across both its verticals viz. the telecom products vertical and the turnkey contracts vertical.
For the Dec-20 quarter, the operating profits were sharply up 82.1% at Rs155.35cr. This was on the back of higher revenues and better margins on high-end telecom products. As a result, operating margin or OPM expanded from 10.00% in the Dec-19 quarter to 12.16% in Dec-20 quarter.
Profit after tax (PAT) for the Dec-20 quarter was up 86.73% at Rs85.11cr on better operating metrics. PAT margins for the Dec-20 quarter only grew from 5.34% in Dec-19 to 6.66% in Dec-20. The huge equity base continues to be an overhang on the stock.
Financial highlights for Dec-20 compared yoy and sequentially
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HFCL Ltd |
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Rs in Crore |
Dec-20 |
Dec-19 |
YOY |
Sep-20 |
QOQ |
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Total Income (Rs cr) |
₹ 1,277.48 |
₹ 853.47 |
49.68% |
₹ 1,054.32 |
21.17% |
|
Operating Profit (Rs cr) |
₹ 155.35 |
₹ 85.32 |
82.08% |
₹ 117.00 |
32.78% |
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Net Profit (Rs cr) |
₹ 85.11 |
₹ 45.58 |
86.73% |
₹ 53.32 |
59.62% |
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Diluted EPS (Rs) |
₹ 0.64 |
₹ 0.36 |
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₹ 0.40 |
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OPM |
12.16% |
10.00% |
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11.10% |
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Net Margins |
6.66% |
5.34% |
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5.06% |
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Key takeaways from the Dec-20 quarter results
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The company derives nearly 75% of its revenues from turnkey contract execution and only 25% from telecom products. The telecom products business has grown sharply in the Dec-20 quarter.
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HFCL has a current order book position of Rs.7313 crore with applications for its products across telecom, railways and the defence sector.
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