By Aayush Khanna
In a bullish start on 20 January 2024, HFCL (NS:)’s share price reached a new high of INR 94.99 as the company announced a substantial order worth INR 623 crores for the supply of 5G equipment. This marks a significant milestone, as it represents the first major order for 5G networking equipment awarded to an Indian company by a telecom service provider.
The surge in HFCL’s stock, reaching INR 99.55 at 12:19 AM, reflects the market’s positive response to this substantial business development, translating to over a 12% increase on the BSE.
HFCL has strategically invested in developing a comprehensive portfolio of 5G networking equipment, addressing telcos’ access, transport, and last-mile networking requirements. This recent order underscores the success of HFCL’s shift from project-based initiatives to margin-accretive products, along with the launch of new offerings, expansion into new markets, and engagement with a broader customer base.
Managing Director Mahendra Nahata expressed confidence in the company’s trajectory, stating that the recent order wins affirm their strategic approach and will further strengthen their position in 2024. The order, amounting to INR 623 crores, is slated for execution by December 2024, adding a significant revenue stream for HFCL.
In addition to this order, HFCL had earlier secured an advance purchase order of INR 1,127.27 crores from Bharat Sanchar Nigam Limited (BSNL) on 1 January 2024. This substantial order is aimed at transforming the Optical Transport Network (OTN) infrastructure across BSNL’s nationwide network.
Looking ahead, HFCL’s board meeting, rescheduled to 1 February 2024, will focus on approving the unaudited financial results for the third quarter and nine months ending 31 December 2023. These recent developments underscore HFCL’s strategic positioning and its ability to capitalize on the evolving landscape of telecommunications infrastructure in India.
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