On Friday, domestic telecom equipment maker HFCL reported a 41.76% drop in consolidated profit to Rs 53.1 crore in the first quarter ended June 30.

HFCL posted a net profit of Rs 91 crore a year ago, the company said in a statement.

Consolidated revenue for the reported quarter fell 12.92% to Rs 1,051 crore from Rs 1,207 crore in the same period last year.

HFCL MD Mahendra Nahata stated: “Revenue and profitability were impacted in the quarter due to service billing overflows, customers’ subsequent inability to provide the required infrastructure and ongoing semiconductor shortages”.

He said that despite macroeconomic challenges and supply chain disruptions over the past six months, HFCL achieved solid financial performance, with export earnings rising by 167% compared to the same period in the previous financial year.

“Product revenue share continued to rise, reaching 59% in Q1FY23 compared to 49% in Q4FY22. Our order book is over Rs 5,300 crore as input cost pressure eases and is passed on to customers. Rates improved slightly from the previous quarter,” Nabata said.