HFCL jumps 3% as telecom gear maker wins Rs 237 crore order

Shares of HFCL climbed 2.9 per cent in early trade on Wednesday as the domestic maker of telecom gear said that it has secured an order worth Rs 237.25 crore from a private telecom operator for supplying optical fibre cables.

The company, however, did not disclose the name of the customer.

HFCL’s share price rose to a high of Rs 64.85 as against Rs 63 at the previous close on the BSE.

"We are pleased to inform all the stakeholders that the company, along with its material subsidiary, HTL Limited, has received the purchase order aggregating to Rs 237.25 crore from one of the leading private telecom operators of the country for supply of optical fibre cables," HFCL said in a regulatory filing.

The order is to be executed by October 2022, it added.

The domestic telecom gear maker posted about a 21 per cent decline in consolidated profit after tax to Rs 68 crore in the fourth quarter ended March 2022. The company had registered a profit after tax of Rs 81 crore a year ago.

HFCL's revenue from operations in the reported quarter also declined by about 15 per cent to Rs 1,182.98 crore from Rs 1,391.4 crore in the March 2021 quarter.

For the full FY22, the consolidated profit of HFCL increased by 32.33 per cent to Rs 325.86 crore from Rs 246.24 crore a year ago. The annual revenue from operations grew by 6.8 per cent to Rs 4,727.11 crore.

HFCL is moving ahead with another round of Rs 425 crore capex and expanding its global footprints, the company’s top management said while detailing its earnings last month.

Over the last month, the company’s share price has dropped 15 per cent.