In early trading on February 27, HFCL witnessed a gain of over one percent, reaching a 52-week high, subsequent to the company securing purchase orders totaling Rs 40.36 crore for the supply of optical fibre cables to a prominent private telecom operator in the country.
At 9:36 am, the share price soared to a 52-week high of Rs 117.70 before settling at Rs 116.30, up by Rs 1.50 or 1.31 percent on the BSE.
The company is set to fulfill the order by supplying various types of optical fibre cables tailored to customer specifications, with the deadline for execution scheduled for June 2024. Additionally, HFCL’s recent strategic move to expand into Europe was greenlit by its board of directors, with plans to establish an optical fibre cable manufacturing facility in Poland. Initially, this facility will have a capacity of 3.25 mfkm per annum, with a capital outlay of up to Rs 144 crore, which can be scaled up to 7 mfkm pa.
Earlier this month, HFCL secured a purchase order worth Rs 141 crore (comprising capex of Rs 119 crore plus AMC of Rs 22 crore) for the supply of domestically designed and manufactured Unlicensed Band Radios (UBRs) and associated services to Bharat Sanchar Nigam Limited (BSNL).
Despite a 20 percent decline in net profit for the December quarter, posting Rs 82.43 crore, HFCL’s recent developments reflect promising growth prospects.
