HFCL Limited | Latest market updates

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HFCL Limited bags new order worth Rs 1,127.27 crore for BSNL’s optical transport network

Last week the company announced its foray into defence sector through its 90% owned subsidiary, Raddef Private Limited, specializing in cutting-edge radar solutions.

HFCL Limited is carving a two-pronged path to progress, leaving its mark on both India’s digital infrastructure and its defence capabilities. On one hand, they have secured a mega Rs. 1127.27 crore deal from BSNL to revamp their nationwide optical transport network. This crucial upgrade will not only cater to the surging data demands of BSNL’s customers but also pave the way for their 4G launch and future 5G rollout. HFCL will be the driving force behind this transformation, designing, supplying, and commissioning the network across India, solidifying its position as a trusted partner in communication infrastructure advancement.

Meanwhile, HFCL is making waves in the defence tech space through its subsidiary Raddef. They are unveiling a range of cutting-edge surveillance radars for enhanced military and security operations. These high-tech systems boast several advantages like high accuracy, low power consumption, and resistance to interference. Utilizing FMCW technology, they go beyond border security, offering applications in weather forecasting, navigation, and even drone detection. Their versatility extends to diverse variants and portable designs, making them deployable in challenging terrains.
But HFCL’s ambition doesn’t stop there. Their research and development are actively exploring an array of innovative radar solutions, including weather radars, threat emulators, and coastal surveillance systems. This dedication to innovation positions them as a key player in the booming global surveillance radar market, projected to reach $12 billion by 2030. HFCL’s dual focus on digital highways and defence frontiers showcases its commitment to driving India’s progress.

Financial Performance
In Q2FY24, the company posted a 5.28% decline in its consolidated revenue at Rs 1,111.49 crore compared to Rs 1,1173.47 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 149.77 crore, while the PAT of the company stood at Rs 69.53 crore, from Rs 84.34 crore last year in the same quarter.

Business Overview
HFCL Limited (Himachal Futuristic Communications Limited) is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, Optical Fiber and Optic Fiber Cable (OFC).

Stock Price Movement
Today, the stock opened at Rs 86.00, with a high and low of Rs 88.59 and Rs 85.59, respectively. The stock is currently trading at Rs 86.77, which increased by 3.10%. The stock has a 52-week high of Rs 88.59 and a 52-week low of Rs 55.75.
The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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HFCL marks a milestone as the first Indian company to secure a groundbreaking order for 5 networking equipment

The strategic win underscores HFCL’s commitment to designing and manufacturing high-tech telecom equipment within India’s borders.

In a significant development, HFCL Limited, a prominent technology enterprise and a leading provider of next-gen communications solutions, has clinched a momentous purchase order worth Rs 623 crore. This substantial order, received on January 19, 2024, is notable for being the first of its kind, positioning HFCL as the inaugural Indian company to secure such a substantial contract for 5G networking equipment. The strategic win underscores HFCL’s commitment to designing and manufacturing high-tech telecom equipment within India’s borders.

Market Context
The global 5G last-mile equipment market is projected to soar to USD 68 billion by 2030, as estimated by industry experts. HFCL’s strategic focus on developing a comprehensive portfolio of 5G networking equipment aligns seamlessly with this burgeoning market. This transformative move is set to play a pivotal role in meeting the escalating demand for 5G technology, with a projected Compound Annual Growth Rate (CAGR) of 48.3%, according to a recent report by Future Market Insights.

Strategic Vision and Innovation
HFCL’s recent achievement is a testament to its strategic vision, emphasizing the transition from projects to margin-accretive products. The company has been proactively launching new products, expanding its customer base, and reaching out to new geographies. Mahendra Nahata, the Managing Director of HFCL, affirmed that this strategy is paying off, positioning HFCL for further growth in 2024 amidst India’s prominent role in the global 5G rollout.

Company Overview
HFCL, with its strong emphasis on innovation, has positioned itself as a frontrunner in the technology landscape. Specializing in digital networks for telecom, enterprises, and governments, HFCL’s robust Research and Development (R&D) capabilities, global system integration services, and expertise in fibre optics have contributed to delivering cutting-edge digital network solutions.

The company’s diverse product range includes premium-quality Optical Fibre and Optical Fibre Cables, 5G Radio Access Network (RAN) products, WiFi systems, Unlicensed Band Radios, Switches, Routers, and defence electronics products.

Recent Highlights and Transformative Initiatives
HFCL’s recent accomplishments extend beyond this groundbreaking order. The company had earlier secured a landmark order valued at Rs. 1,127 crore to revolutionize Bharat Sanchar Nigam Limited’s (BSNL) Optical Transport Network (OTN). This transformative initiative, in collaboration with NOKIA Network, highlights HFCL’s commitment to delivering cutting-edge solutions that surpass industry standards.

The BSNL project involves a comprehensive network upgrade, addressing the demands of Enterprise and FTTH/Broadband services, and positioning BSNL for the seamless launch of 4G and anticipated 5G services. The strategic endeavour includes the deployment of state-of-the-art optical technology, with a projected outcome of empowering BSNL with a data capacity of 12 terabytes, meeting data needs for the next decade.

Conclusion
HFCL’s recent order of Rs 623 crore for 5G networking equipment reinforces its position as a key player in the telecom and technology landscape. Being the first Indian company to secure such a substantial order is a testament to HFCL’s commitment to technological innovation, indigenous manufacturing, and strategic vision. As the company continues to ride the wave of India’s 5G rollout and technological evolution, HFCL remains poised for further growth and profitability in the dynamic market.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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HFCL Secures Rs 64.93 Crore Order, Total Order Book Stands at Rs 7678 Crore

Amidst the chaos, one stock managed to gain nearly 2% on Friday: HFCL. Despite the market sell-off, HFCL experienced a rally. What could be the reason behind this surge?

On Friday, the Indian markets experienced a downturn, with the Nifty 50 and Sensex both declining by nearly 1%. This decline was primarily driven by a sell-off in Nifty Pharma and Nifty Media sectors, leading to all sectors trading in the red. The broader markets also slipped into negative terrain, further deteriorating the market breadth. Out of the total stocks, 724 were advancing, while 1380 stocks were declining.

Amidst the chaos, one stock managed to gain nearly 2% on Friday: HFCL. Despite the market sell-off, HFCL experienced a rally. What could be the reason behind this surge?

HFCL’s Positive News

The reason behind HFCL’s rally lies in its recent developments. The company, along with its material subsidiary, HTL Limited, secured purchase orders worth Rs 64.93 crores for the supply of Optical Fiber Cables to a leading private telecom operator in the country. This news comes as a significant boost, especially considering that the company’s total order book stood at Rs 7678 crores as of December 31, 2023.

About HFCL

HFCL Limited, formerly known as Himachal Futuristic Communications Limited, has been in operation since 1987. It specializes in the manufacturing of Optical Fiber (OF), Optical Fiber Cables (OFC), Cable Accessories, and High-End Telecom Transmission and Access Equipment. The company is renowned for providing turnkey solutions to various sectors including telecom service providers, railways, defense, smart city, and surveillance projects. HFCL is a leading manufacturer of Optical Fiber Cables (OFC) in India and is a significant player in turnkey OFC projects. Additionally, HFCL is a major contributor to the Government of India’s BharatNetProgramme.

Revenue Breakdown

In the third quarter of FY24, HFCL’s revenue contribution was as follows: 89% from public communication, 8% from defense, and 3% from railways. This diversification highlights the company’s resilience across different sectors.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.