Telecom company’s stock surged by 4% following the announcement of a new project worth ₹2,501 crore from BSNL for the BharatNet initiative
Telecom company: The shares of HFCL Limited, a leading telecom infrastructure manufacturer specializing in creating digital networks and critical equipment for telcos, defense, enterprises, and governments, surged by 4 percent in today’s trading session following the announcement of being awarded the BharatNet project valued at approximately Rs. 2,501 Crores.
Market Performance
With a market capitalization of Rs. 15,213 Crores, HFCL Limited’s shares were trading at Rs. 105.45 per equity share, marking a 2.98 percent increase from the previous day’s closing price of Rs. 102.40.
Project Details
HFCL Limited, known for providing comprehensive solutions for establishing telecommunications and defense communication networks, secured a significant work order worth Rs. 2,501.30 Crores from Bharat Sanchar Nigam Limited for Phase 3 of the BharatNet Project in the Punjab Telecom Circle.
The project entails the design, supply, construction, installation, upgrade, operation, and maintenance of the middle-mile network using the design-build-operate-and-maintain (DBOM) model. This project involves operating expenses of approximately Rs. 746.76 Crores for the newly constructed network, Rs. 509.94 Crores for the existing network, and a capital expenditure of Rs. 1,244.61 Crores. The project timeline includes three years of construction and ten years of maintenance.
About HFCL Limited:
HFCL Limited is a prominent telecom infrastructure technology company that specializes in providing comprehensive solutions for establishing networks required for telecommunications, defense communication, and railway communication in India. As the leading supplier of optical fiber cables in India, HFCL operates five manufacturing facilities, three R&D centers, and has a presence in over 45 countries. The company derives 97 percent of its revenue from telecom and cable, 1 percent from defense, and 2 percent from railways.
HFCL has developed expertise in delivering high-quality optical fiber and optical fiber cables, cutting-edge telecom products such as 5G Radio Access Network (RAN) products, 5G Transport Products, Wi-Fi Systems (Wi-Fi 6, Wi-Fi 7), Unlicensed Band Radios, Switches, Routers, and defense electronics products. Despite a 1.61 percent decline in revenue from operations, dropping from Rs. 1,111 Crores in Q2FY24 to Rs. 1,094 Crores in Q2FY25, the company’s profits increased from Rs. 70 Crores to Rs. 73 Crores.
For more market insights, follow our blog.
Stay tuned for more updates and insights on the stock market! For more insights on investing in the Indian stock market, check out resource like ET, NSE India.
Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.