The shares of one of the leading telecom infrastructure manufacturers jumped 2 percent in the day’s trade after it received purchase orders worth Rs. 67 Crores from a Domestic Telecom Service Provider.
At 12:47 p.m. the shares of HFCL Limited were trading at Rs. 67.85, up 1.70 percent from its previous day’s close price of Rs. 66.75, and its market capitalization is Rs. 9,697 Crores.
HFCL Limited along with its subsidiary HTL Limited has received purchase orders worth Rs. 67 Crores from a Domestic Telecom Service Provider for the supply of Optical Fiber Cables and it is to be supplied by April 2024.
HFCL Limited is one of the leading telecom infrastructure technology companies that offer end-to-end solutions for establishing the network required for telecommunications, Defense communication and railway communication in India.
It has the Largest market share in Optic Fibre Cable (OFC) supplies in India in FY22 and 2023 and it is one of the largest manufacturers of Wi-Fi access points and UBR along with other telecom products in India. Some of its key customers include Reliance Jio, Airtel, Larsen & Toubro, ITI, Tata, Bharat Electronics, and many more.
The government of India is expected to invest USD 10-12 Billion each year towards boosting the telecom infrastructure over the next 4-5 years and an estimated spend of USD 1.5-2 Billion for Optic Fiber Cables along highways for the next 3 to 4 years.
HFCL Limited’s sector-wise revenue distribution is as follows, it generated 83 percent of its revenue from Telecom and Cable,15 percent from Defense, and 2 percent from railways.
As of September 2023, it has a total order book of Rs. 7078 Crores, category wise it consists of Rs. 4696 Crores (66 percent) for Network services, Rs. 1,880 Crores (26.5 percent) operation and maintenance, and Rs. 502 Crores (7 percent) Products.
Some of the key highlights in Q2FY24 are, it Bagged orders from Madhya Pradesh Jal Nigam worth Rs. 1,015 Crores for providing EPC services, Bagged an order from one of the largest Telecom operators worth Rs. 220 Crores for the supply of Optical Fibre cables, Successfully completed QIP, and raised Rs. 352 Crores from marquee investors and it Launched Intermittently Bonded Ribbon Cable and High Fibre DensityFlat Ribbon Cable at various events held in US & UK.
The company’s revenue from operations grew 0.34 percent from Rs. 4,727.11 Crores in FY22 to Rs. 4,743.31 Crores in FY23, accompanied by profits of Rs. 325.86 Crores to Rs. 317.71 Crores.
Written by: Bharath K.S
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