Updated January 4th, 2024 at 14:44 IST
HFCL shares surge 7.5% on third day following Rs 1,127 crore BSNL order
HFCL secured an Advanced Purchase Order from Bharat Sanchar Nigam Ltd for a staggering Rs 1,127.27 crore.
HFCL share price surge: The shares of Gurugran-based telecom equipment manufacturer, HFCL Ltd, extend their impressive rally, reaching a new 52-week high of Rs 94.65, marking the third consecutive day of substantial gains.
BSNL boost sparks growth
HFCL secured an Advanced Purchase Order (APO) from Bharat Sanchar Nigam Ltd (BSNL) for a staggering Rs 1,127.27 crore. This substantial order is aimed at transforming BSNL's Optical Transport Network (OTN) infrastructure across its pan-India network.
The comprehensive network upgrade, encompassing design, planning, engineering, supply, installation, and commissioning, positions HFCL to support BSNL's requirements for enterprise, FTTH/broadband services, and prepares the telecom operator for the seamless launch of 4G services, with an eye on anticipated 5G services in the coming years.
Strategic collaboration and future prospects
HFCL's strategic collaboration with NOKIA Network to deploy cutting-edge optical technology at over 300 network nodes and 2000 amplifier sites underscores its commitment to technological excellence, supporting future 4G and 5G services.
HFCL's Managing Director, Mahendra Nahata, emphasised the significance of this collaboration, stating, "As we navigate through an era marked by an escalating demand for broadband connectivity, HFCL acknowledges the pivotal role of fortified backhaul transport. Collaborating with our partner for the project, NOKIA Network, we are actively reshaping the future and making significant contributions to India’s digital evolution."
Financial insights and market sentiment
HFCL reported a decline in revenue by 5.28 per cent YoY and a decrease in profit by 15.2 per cent YoY during the quarter ended September 2023. However, the company witnessed growth in revenue by 11.69 per cent compared to the previous quarter.
The stock has delivered positive returns in the last week and an impressive return of 24.90 per cent in the last six months, indicating strong market confidence.
Published January 4th, 2024 at 14:15 IST