HFCL Q1 Net Profit Up 46.4% to Rs 111 cr | Telecom News

New Delhi, Jul 24 (PTI) Domestic telecom equipment maker HFCL Ltd on Tuesday reported a 46.4 per cent year-on-year rise in consolidated net profit for the June quarter to Rs 111 crore.

Its revenue rose 16.4 per cent to Rs 1,158 crore in the just-ended quarter, compared to a year ago.

HFCL Managing Director Mahendra Nahata noted that amid geo-political challenges, India stands out with its political stability and resilient economy, positioning itself as a prime investment destination.

"The technology and telecom sectors are going to play a vital role in achieving the country's vision of 'Viksit Bharat@2047'," he said.

The growing demand for high-speed internet, the expansion of 5G networks, FTTH (Fibre To The Home) implementation, hyper-scaling of data centres, advancements in Artificial Intelligence and Machine Learning, the PLI (production-linked incentive) scheme and the thrust on indigenous development and procurement of defence equipment, present substantial opportunities for the company both in domestic and global markets, Nahata said.

HFCL is highly optimistic about the BharatNet-III project opportunity, and believes it is well-positioned to supply its own designed and developed products, including optical fiber cables, routers, and passive connectivity solutions.

"Our routers and optical fiber cables are specifically designed for rugged use in rural environment," Nahata said.

The company cautioned that the global optical fiber cable market is currently experiencing a slowdown. However, it is anticipated that the market will begin to see growth again from the last quarter of current financial year 2024-25, according to HFCL.

"To mitigate the impact of this slowdown on its optical fiber cable revenue, HFCL has expanded its business and market share in passive connectivity solutions, targeting both telcos and data centre segments," he said.