HFCL posted a massive dip in its earnings for Q1FY21. Its consolidated net profit dipped 81% (YoY) at Rs.21 crore on a 48% drop in total income at Rs.704 crore.
A deferred tax write-back of Rs.21.55 crore helped keep the drop limited to 81% or else it would have been much higher.
The company also stated that it shifting the plant and machinery of Solan in Himachal Pradesh, facilities and operations thereof to its manufacturing facility in Hyderabad. Those employed at Solan can choose to either continue working at Hyderabad or other places where company’s projects are currently on. Those not opting to relocate will be given a VRS.
The stock was a big gainer yesterday as it is expected to be a beneficiary of Modi’s plan to connect 1.5 lakh Gram Panchayats through optical fibre network, targeting 6 lakh villages in the next 1000 days. HFCL specializes in manufacturing of telecommunication equipment, optical fiber cables and intelligent power systems.
The stock price slipped into the red, going down almost 1.5% to Rs.16.29 with more sellers than buyers on the counter. The stock has a 20% LC, which is today at Rs.13.22.