HFCL jumps 12% on multifold gains in Q4 profit, 5G plans

Shares of HFCL jumped as much as 12 per cent on Tuesday as the company reported a multifold jump in the net profit during the March quarter. The company, with a current order book of Rs 6,875 crore, has firmed up its 5G plans.

Domestic telecom gear maker posted a multifold jump in its consolidated net profit to Rs 86.47 crore in the quarter ended March 31, 2021. The company had posted a net profit of Rs 8.7 crore in the corresponding period of the previous year.

Shares of HFCL soared 12 per cent to Rs 38.40 on Tuesday, only to give up some gains marginally to trade at Rs 37.80 at 10.35 am. The scrip was closed at Rs 34.30 on Monday. At the same time, BSE Sensex was trading 401.95 points or 0.81 per cent lower at 49,100.46.

The homegrown optic fibre-to-night-vision devices maker said that its current order book currently stands at Rs 6,875 crore, and the company would continue to focus on next-generation (5G) portfolio, following which it has firmed up plans to design 5G small and micro cells.

The Delhi based company posted a net profit of Rs 85.11 crores in December quarter. HFCL’s total income stood at Rs 1,391.40 crore in Q4 and in the FY 20-21 over Rs 1,277.40 crore in Q3 FY 2020-21.

The company attributed growth mainly to its in-house designed and developed products, in line with the Atmanirbhar Bharat which is said to continue to add to its overall profitability.

The domestic fibre maker works closely with incumbent telecom carriers. Both Reliance Jio and Bharti Airtel are highly focussing on increasing the FTTH network footprint in large cities for triple-play services. By the end of December 2020, the company had shipped 100,000 indigenously designed, developed, and manufactured Wi-Fi systems.

With the current order book of Rs 6,800 crore, the company believes that more relevant business opportunities are expected to come as India moves closer to 5G commercial rollouts.