The shares of the leading digital networking solutions provider gained up to 9 percent after the European Commission exempted the company from anti-dumping duties.
With a market capitalization of Rs 18,264.24 crore, the shares of HFCL Ltd were trading in green at Rs 126.20 per share, which increased significantly around by 7.13 percent as compared to the previous closing price of Rs 117.80 apiece.
The company share has seen a bullish movement after HFCL Ltd was recognized as the only Indian company against which no Anti-Dumping duty has been determined by the European Commission on the export of Optical Fiber Cables to European countries.
However, provisional Anti-dumping duty has been determined on all other Indian Optical Fiber Cable Manufacturers in the statement issued by the European Commission. This makes HFCL the only Indian Optical Fiber Cable manufacturer to have been exempted from anti-dumping duties by the European Commission.
Moreover, the complaint was registered on 3 October 2023 by Europacable on behalf of the European industry of optical fiber cables, alleging that imports of OFC, originating from India, were being dumped and were causing injury to the European industry.
Indian OFC makers received notifications in the middle of November 2023. The European Commission required the first sales data from export companies within one week. Data on production, sales, exports, and prices for October 2022 – September 2023 were reported within a month as mandated by the European Commission.
Furthermore, after a thorough investigation, the European Commission ruled in June 2024 that anti-dumping duties would not apply to the Indian exporting product of the HFCL Group, which includes HFCL Limited and HTL Limited, as no evidence of dumping was found.
Looking forward in to the company’s financial performance, revenue plummeted by 7 percent from Rs 1,433 crore in Q4FY23 to Rs 1,326 crore in Q4FY24, furthermore, during the same period, net profit decreased by 38 percent from Rs 79 crore to Rs 109 crore.
HFCL Limited is an Indian-based worldwide technology business. The Company is a telecom infrastructure enabler that specializes in telecom infrastructure development, system integration, and the manufacture and delivery of telecom equipment, optical fiber, and optical fiber cable (OFC).
Written by:- Abhishek Singh
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