HFCL zooms 4% as telecom gear manufacturer bags orders worth Rs 73 crore

NEW DELHI – Shares of HFCL jumped 4.1 per cent in early trade on Friday as the telecom gear maker received orders worth a total of Rs 73.39 crore.

Rs 51.09 crore worth of the orders were from a leading private telecom operator of the country for the supply of UBRs (unlicensed band radio) along with accessories. The order worth Rs 22.30 crore has been bagged from one of the leading EPC players of India for the supply of optical fibre cables.

The UBRs have been indigenously designed, developed and manufactured in India which are sold not only in India but has also got its presence in global market, reports said.

HFCL’s share price rose to a high of Rs 66.35 as against Rs 63.75 at the previous close on the BSE.

“This contract demonstrates the confidence of private telecom operators in the adoption of HFCL's indigenously manufactured products for expanding their existing network infrastructure,” the company was quoted as saying in reports.

“…This repeat order shows trust that our customers have in us and in the quality of our products.”

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.