CARE re-affirmed its credit rating for the company's long term bank loan facilities at A- with a stable outlook and short term bank facilities at A2+
Shares of optical fiber cable manufacturer Himachal Futuristic Communications rallied 10 percent intraday on July 11 after reporting healthy earnings growth in June quarter.
Its profit in June quarter increased 148 percent year-on-year to Rs 117 crore driven by strong revenue mix and operating performance.
Revenue grew 23 percent to Rs 1,343 crore in quarter ended June 2019, against Rs 1,088 crore reported in the same period last year.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBIDTA) increased 104 percent year-on-year to Rs 194 crore.
"The company exceeds all previous quarterly performance benchmarks in Q1FY20 and has reported remarkable quarterly performance. The all-round performance was powered by the change in revenue mix, accelerated project execution and efficiency improvement," HFCL said in its BSE filing.
The company further said its construction work at greenfield optical fiber manufacturing plant at Hyderabad has entered its last leg during the quarter. The plant shall go onstream by its scheduled commissioning target of November 2019.
In addition, CARE re-affirmed its credit rating for the company's long term bank loan facilities at A- with a stable outlook and short term bank facilities at A2+.The stock was quoting at Rs 21.75, up Rs 1.55, or 7.67 percent on the BSE at 0950 hours IST.