HFCL Sept quarter sales up 22%

Himachal Futuristic Communications (HFCL)'s strong turnaround has continued with another good showing in the Quarter ended September 2006. The Proforma Net Profit showed a rise at Rs.30.24 Crs against Rs. 17.33 Crs during the last corresponding quarter and net turnover going up by 21.63% to Rs.250.30 Crs.

The performance has been and will continue to be driven by the increased demand from telecom services providers.

According to Mr. Mahendra Nahata, the Managing Director of the Company "HFCL continue its good performance in the second quarter of the current financial year. All the performance parameters again showing upward trend from the last quarter of the previous financial year.

HFCL's balance sheet has been totally restructured, with the company having taken a one-time charge in the last quarter of Financial Year 2006. The Turnkey Implementation business has shown tremendous growth and we expect this division to be the revenue and profit driver for HFCL in FY08, as well."

Management's focus on cost control is also yielding results as is evident from the results. HFCL's margins continue to improve consequent to the cost control measures.

After taking into account other overheads of Rs. 18.07 crores (Rs 14.13 crores), the earnings before depreciation, tax and amortisation ( EBIDTA) for the quarter stand at Rs.46.28 crores (Rs. 41.13 crores) with EBIDTA Margins standing at 18.49%.

Further, taking into account interest of Rs. 10.12 crores (Rs 15.77 crores), depreciation & amortisations of Rs. 5.81 crores (Rs 8.01 crores) , the net profit before tax and nonrecurring items stands at Rs. 30.35 crores against loss of Rs. 17.35 crores last year.