Multibagger Telecom Infrastructure Stock: HFCL Announces Stellar Quarterly Results (Q1FY25) & in Advanced Discussions to Export Defence Products; Details Inside!

The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 61.52 per share and a whopping 558 per cent in 5 years.

HFCL Limited, India’s leading technology enterprise with operations in the manufacturing of high-end telecom equipment, optical fiber and optical fiber cables and offering communication network solutions for telcos, defence and railway sectors announced its Unaudited financial results for the first quarter ended June 30, 2024.

Standalone Quarterly Results: The net sales increased by 21 per cent to Rs 1,065.52 crore, the operating profit increased by 62.7 per cent to Rs 176.58 crore and the net profit increased by 133.8 per cent to Rs 113.98 crore in Q1FY25 vs Q1FY24.

Consolidated Quarterly Results: The net sales increased by 16.4 per cent to Rs 1,158.24 crore, the operating profit increased by 16.1 per cent to Rs 185.37 crore and the net profit increased by 46.9 per cent to Rs 111.31 crore in Q1FY25 vs Q1FY24.

Consolidated Annual Results: The company reported net sales of Rs 4,465.05 crore, an operating profit of Rs 682.13 crore and a net profit of Rs 336.59 crore in FY24.

Order Book Update: As of June 2024, the company’s order book stands at Rs 6,776 crore. Out of the total order book, Government orders are worth Rs 4,706 crore and private company orders are worth Rs 2,070 crore.

Mr Mahendra Nahata, Managing Director of HFCL said that the company is well-positioned to benefit from the robust growth in the Indian technology and telecom sectors. Nahata highlights HFCL's strategic investments in R&D for various products, capacity expansion, and backward integration as key factors that will propel them forward in the upcoming quarters. He emphasizes the numerous opportunities presented by the growing demand for high-speed internet, 5G network expansion, FTTH implementation, and data center growth. He also cites government initiatives like the BharatNet Phase III project and the PLI scheme as positive influences on the market.

Looking beyond domestic telecom, Mr Nahata said that the company foray into the defence sector. The company's focus on indigenous development has resulted in a comprehensive defence product portfolio that's gaining traction both domestically and internationally. Significantly, Nahata mentions HFCL's involvement in advanced discussions with companies from several countries regarding the export of defence products, including electronic fuzes. This strategic expansion, along with a shift towards higher-margin products and a growing international presence, is expected to contribute significantly to HFCL's profitability, as highlighted by Mr Nahata.

About HFCL Ltd

HFCL is a leading technology company that designs and delivers advanced digital network solutions for telecommunication companies, enterprises, and governments. Backed by decades of experience in fiber optics and strong research and development capabilities, HFCL offers a comprehensive range of high-tech solutions, including 5G equipment, Wi-Fi systems, and optical fiber cables. Their in-house R&D centers and collaborations ensure cutting-edge products that meet the ever-changing demands of modern networks. With a commitment to quality, environmental responsibility, and providing the latest technology, HFCL has become a trusted partner for its customers worldwide.

Today, shares of HFCL Ltd surged 4.64 per cent to an intraday high of Rs 125.10 per share from its previous closing of Rs 119.55 per share. The company's shares saw a spurt in volume by more than 1.01 times on BSE. The stock’s 52-week high is Rs 135.40 per share and its 52-week low is Rs 61.52 per share.

The company has a market cap of over Rs 17,000 crore. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 61.52 per share and a whopping 558 per cent in 5 years. Investors should keep an eye on this Multibagger Telecom Infrastructure stock.  

Disclaimer: The article is for informational purposes only and not investment advice.