This Telecom stock which deals in the business of infrastructure related to telecom and enabler with active interest focused on telecom infrastructure development, integration of systems, and supply and manufacturing of high-end telecom equipment, Optical Fiber and Cable were in focus after the company received a work order from RVNL worth Rs. 2,167.65 crore.
Share Price Movement
With a market capitalization of Rs. 14,455.58 Crores, the shares of HFCL Limited were up by 2.37 percent in the day’s trade touching a day’s high of Rs. 103.35 per share. The stock reiterated from the day’s high and was trading at Rs. 100.20 which is 0.74 percent lower than the previous closing price of Rs. 100.95 apiece. The stock has delivered a negative return of 5 percent which has underperformed the Nifty Index in the past year.
What happened
The company’s stock was in focus after receiving from Rail Vikas Nigam Limited worth approx Rs. 2,167.65 crores for the supply of Optical Fiber Cables, Telecom Equipment, and other related accessories. It includes telecom equipment maintenance for 10 years including 1 year warranty period for the BharatNet Phase 3 in Uttar Pradesh’s east and west telecom circle. The supply order needs to be executed in 3 years. The order consideration includes approx value of Rs. 1,736 crore for Capex and the remaining Rs. 430.82 crores for Operational expenditure.
Q2YF25 Financial Highlights
According to its recent filing, in the quarter ending September 2024, HFCL consolidated revenue from operations has declined by 1.60 percent year on year from Rs. 1,111 crore in Q2FY24 to Rs. 1,093.61 crore in Q2FY25 and declined by 5.58 percent quarter on quarter from Rs. 1,158.24 crore in Q1FY25.
The company’s consolidated net profit has increased by 4.5 percent year on year from Rs. 70.17 crores in Q2FY24 to Rs. 73.33 crores in Q2FY25. As compared to Q2FY25, the company’s net profit has increased by 33.72 percent quarter on quarter from Rs. 110.65 crore.
Company Overview & Order Book
HFCL is an Indian technology company that specializes in telecommunications equipment, optical fiber cables, and digital network solutions while serving clients in over 30 countries for 30 years. The company’s order book stood at Rs. 6,151 crore out of those Rs. 2,884 crore from Network services, Rs. 2,010 crore from Operations and Maintenance, and Rs. 1,257 crore from Products as of September 2024. They received Rs. 4,183 crore from Government and the remaining Rs. 1,968 crore from Private Institutions.
Written By Santhosh S
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