HFCL jumps on bagging order of Rs. 2,467 crore from BSNL

Himachal Futuristic Communications Limited (HFCL) has received a Purchase Order (PO) worth Rs. 2,467 crore from Bharat Sanchar Nigam Limited (BSNL) for setting up of the Converged Nationwide IP /MPLS Backbone & Access Network tor Armed Forces under the Network for Spectrum (NFS) Program of the Government of India.

The PO includes Operation & Maintenance (O&M) for a period of 10 years including 3 year warranty period for which. Rs 862 crore will be paid by the Indian Defense Services post the warranty period.

The project is funded by the Department of Telecom (DoT), Government of India. BSNL has been appointed as the nodal agency by the DoT for its execution.

The project shall be completed within 18 months from the date of issue of PO, that is, August 19, 2019. The scope of the work includes Procurement, Supply, Implementation, Installation, Commissioning, Testing, Optimisation, Training, Documentation and Maintenance of Converged Nationwide IP/MPLS Backbone with 219 X Access Networks and Integrated IMS-based Communication Solution on a turnkey basis for defense network.

The company closed the June quarter of FY20 with an order book of Rs. 10,275 crore which is 2.4 times its FY19 revenue.

On Tuesday, the stock of HFCL opened at Rs. 19.90 per share. It was up by 8.5 per cent from its previous close of Rs. 18.85, touching Rs. 20.45 in the early morning session.