HFCL shares reach a 52-week high on a purchase order worth ₹40.36 Crore

27 Feb 2024 , 01:18 PM

Following purchase orders totaling ₹40.36 Crore for the provision of optical fibre cables to one of the top private telecom operators in the nation, HFCL’s share price increased by more than 1% to reach a 52-week high in early trading on February 27.

By 9:36 am, the share price had risen to ₹116.30 on the BSE, up ₹1.50, or 1.31%, from its 52-week high of ₹117.70. 

According to the customer’s demands, the company will provide a variety of optical fibre cables; the order must be completed by June 2024.

The company’s board of directors authorized the establishment of an optical fibre cable production facility in Poland as part of a planned expansion into Europe last week.

With a potential capital expenditure of up to ₹144 Crore, the planned manufacturing facility in Poland would start with an annual capacity of 3.25 million foot-km. The scalability of this plant is up to 7 mfkm pa.

Earlier this month, the company was able to acquire purchase orders totaling ₹141 Crore (capex of ₹119 Crore + AMC of ₹22 Crore) for the provision of Unlicensed Band Radios (UBRs) and related services to Bharat Sanchar Nigam Limited (BSNL) that are designed and built domestically.

The company reported a 20% decline in net profit for the December quarter, coming in at ₹82.43 Crore.

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