The shares of leading manufacturers of next-gen technologies gained up to 2 percent after the company received a purchase order worth Rs 141 crore for the supply of telecom equipment and services from BSNL.
With a market capitalization of Rs 13,437.61 crore, the shares of HFCL Ltd were trading at Rs 94.15 per share, decreasing around 0.11 percent as compared to the previous closing price of Rs 94.25 apiece.
According to the company filing, HFCL Ltd has received the purchase order for the supply of indigenously designed and manufactured Unlicensed Band Radios (UBRs) from Bharat Sanchar Nigam Limited (BSNL) worth Rs 141 crore.
Furthermore, This order is part of an Advance Purchase Order worth about Rs 179 crores issued by BSNL to the Company. The outstanding order of around Rs 38 crores is scheduled to be issued upon completion of supply against the present Purchase Order.
Additionally, Under this order, the business will provide BSNL with critical equipment and services to support its 4G network. This network upgrade is expected to deliver cutting-edge technology while remaining cost-effective backhauling solutions for BSNL’s 4G network, laying the groundwork for 5G capabilities.
Looking into the company’s finances, HFCL Ltd’s revenue decreased by 5 percent from Rs 1,086 Crore in Q2FY23 to 1,032 Crore in Q2FY24. During the same period, net profits decreased by 19 percent from Rs 102 crore to Rs 82 crore.
The company’s strong order book as of December 2023 is Rs 7,678 crore, broken into three categories: Rs 2,051 crore for Operations and Maintenance, Rs 5,180 crore for Network Services, and Rs 447 crore for Products.
The business plans to invest EUR 50 billion in fiber broadband deployments in Germany by 2025, increasing coverage from 5.4% to 50% of homes. The federal government provided EUR 12 billion of the entire funding, with the remainder coming from private sources.
HFCL Ltd (Himachal Futuristic Communications Limited) is a diverse telecom infrastructure enabler with active interests in telecom infrastructure development, system integration, and the manufacturing and sale of high-end telecom equipment, optical fiber, and optical fiber cable (OFC).
Written by:- Abhishek Singh
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