HFCL secures Rs 82.60 cr telecom order, reports strong Q1 performance

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HFCL secures Rs 82.60 cr telecom order, reports strong Q1 performance

HFCL secures Rs 82.60 cr telecom order, reports strong Q1 performance

Industry News
Sep 15,23

Himachal Futuristic Communications Limited (HFCL), backed by Reliance Industries had been awarded the contract for supplying optical fibre cable to an Indian telecom company.

HFCL secures Rs 82.60 cr telecom order, reports strong Q1 performance

Himachal Futuristic Communications Limited (HFCL), backed by Reliance Industries, announced that it had secured an order worth Rs 82.60 crore from a domestic telecom service provider. In a regulatory disclosure, the company stated that it had been awarded the contract for supplying optical fiber cable to an Indian telecommunications company, with the project expected to be completed by November of this year.

During the first quarter of FY2023-24, HFCL reported a notable 42% increase in its net profit, reaching Rs 75.56 crore, compared to Rs 53 crore in the corresponding period of the previous year. However, its revenue experienced a 5% decline, falling from Rs 1,051 crore in the previous fiscal year to Rs 995 crore in the same timeframe, as per the filing.

On a sequential basis, net profit decreased by 4% from the preceding quarter, which reported Rs 79 crore in profit, while revenue witnessed a substantial 31% decrease compared to the previous quarter's Rs 1,432 crore.

HFCL's Managing Director, Mahendra Nahata, remarked, "In Q1FY24, we achieved a significant increase in international business revenue, totaling Rs 176.23 crores, marking a remarkable 156% year-on-year growth. Our strategic emphasis on enhancing product revenue, expanding production capabilities, and exploring new markets has boosted the product revenue share to 67% in Q1FY24, compared to 59% in the same quarter of the previous year."

Previously, the telecom equipment manufacturer had announced another substantial contract win, securing an order worth Rs 80.92 crore from the Delhi Metro Rail Corporation (DMRC) for the establishment of a Fiber Optics Transmission System (FOTS) as part of the Delhi Metro Rail Project.

The statement explained, "HFCL will be responsible for the design, manufacturing, supply, installation, testing, and commissioning of the Fiber Optics Transmission System (FOTS) for three priority corridors within Phase-IV of the Delhi Metro Rail Project."

The statement also highlighted HFCL's strong track record in deploying communication networks for various railway projects both domestically and internationally, including the Mauritius Metro, the ongoing Dhaka Metro project, the Gujarat Metro project, and the Kanpur-Agra metro rail projects.

Source: Business Standard