The shares of this leading manufacturer of next-gen technologies gained up to 5 percent after the company received a purchase order worth Rs 1,127 crore from Bharat Sanchar Nigam Ltd (BSNL).
With a market capitalization of Rs 12,437.47 crore, the shares of HFCL Ltd were trading at Rs 87 per share, increasing around 3.37 percent as compared to the previous close price of Rs 84.16 apiece.
As per the company filing, HFCL Ltd received a purchase order worth Rs 1,127 crore from Bharat Sanchar Nigam Ltd (BSNL). This order pertains to the implementation of BSNL’s optical transport network for carrying traffic of BSNL on a Pan India basis.
Additionally, The purpose of this advance purchase order is to design, and planning architecture, engineering, supply, installation & commissioning, and system integration of OTN (Optical Transport Network) equipment across India in the BSNL OTN project.
In addition to the above paragraph, APO also includes three years of operation and maintenance (“O&M”), as well as an eight-year comprehensive annual maintenance contract (“AMC”) for which the BSNL will pay Rs 170.30 crores.
The company’s strong order book as of October 2023 is Rs 7,078 crores spanning telecom, railway, and military. HFCL Ltd bagged an order from one of the leading Telecom operators for the delivery of Optical Fibre cables for Rs 220 Crs.
Looking into the company’s financial, HFCL Ltd’s revenue decreased by 5 percent from Rs 1,173 Crore in Q2FY23 to 1,111 Crore in Q2FY24. During the same period, net profits decreased by 16 percent from Rs 84 crore to Rs 70 crore.
HFCL Ltd exports accounted for 14.36% of total revenue in H1FY24 and have increased at an 88.02% CAGR over the past three fiscal years. As a targeted prospective market, the corporation is growing into new areas, including Europe, North America, and Africa.
HFCL Ltd is a comprehensive telecom infrastructure enabler with a focus on telecom infrastructure development, system integration, and the production and sale of high-end telecom equipment, Optical Fiber, and Optic Fiber Cable (OFC).
Written by:- Abhishek Singh
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