After the company announced its earnings for the quarter ended December 2021, the shares of HFCL Limited fell 8.6 per cent to a intraday low of Rs 88.10 on the Bombay Stock Exchange BSE.
The domestic telecom gear maker posted a 4.7 per cent decline in consolidated profit to Rs 81.1 crore for the third quarter ended December 31, 2021, due to a hike in component prices, especially semiconductors.
The company had a profit after tax of Rs 85.11 crore was posted in the same period a year ago. Revenue fell by 4.86 per cent to Rs 1,215. 21 crore was better than 1,277. It posted 48 crore in the same quarter of 2020 -- 21.
The stock was 6 per cent lower at Rs 90.50 against the previous close of Rs 96.40. The firm's market cap fell to Rs 12,306. There are 66 crore of them. The shares are higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Mahendra Nahata, Managing Director of HFCL said, Although demand is coming back slowly, we had a strong quarter with growth in revenues.
The margins were slightly impacted during the quarter, due to increased logistic costs and increase in fiber and semi-conductor prices. We are on track to shift our revenue mix from more EPC to more products and looking for significant growth in the coming years. He said that the company is constantly working on expanding its global market access and he has appointed global leaders in the US and Europe to boost its OFC and Telecommunication product sales.
He said that The Board has approved and considered the Company's plan for expansion of fiber manufacturing capacity from 10 mn fkm p.a. OFC manufacturing capacity was consolidated from 24.75 mn fkm p.a. There was an overall capital outlay of 425 crores. We remain optimistic about the outlook of the sector. The PLI scheme candidature is going to help us improve our competitiveness, collaborate with new players and venture into new geographies, and will be supported by the Government. The technical trend has been improved from Mildly Bullish on January 5, 2022, and the stock is technically in a Bullish range now, according to MarketsMojo. It is trading at a discount compared to its average historical valuations and has a fair valuation.