Rs 6,151 Crore Order Book: Telecom Infrastructure Company Bags New Order Worth Rs 2,501.30 Crore From Bharat Sanchar Nigam Ltd
The stock is up by 31.5 per cent from its 52-week low of Rs 81.22 per share and gave multibagger returns of 510 per cent in 5 years.
HFCL Limited has secured a substantial Advance Work Order (AWO) valued at approximately Rs 2,501.30 crore from Bharat Sanchar Nigam Limited (BSNL). This AWO encompasses the comprehensive responsibility of designing, supplying, constructing, installing, upgrading, operating, and maintaining the middle-mile network for BharatNet Phase III within the Punjab Telecom Circle. The project will be executed under the Design, Build, Operate, and Maintain (DBOM) model, signifying a long-term commitment from HFCL.
This significant contract win underscores HFCL's strong position in the telecommunications infrastructure sector. The project duration spans three years for construction, followed by a ten-year maintenance contract. The financial implications of this order include capital expenditure (Capex) of approximately Rs 1,244.61 crore and operating expenditure (Opex) for the newly constructed network and existing network amounting to Rs 746.76 crore and Rs 509.94 crore, respectively. This AWO marks a crucial milestone for HFCL, solidifying its role in the expansion and modernization of India's digital infrastructure.
About the Company
HFCL is a leading technology provider specializing in building digital networks for telecom operators, businesses, and governments. With a strong foundation in fibre optics and decades of experience, HFCL offers sustainable, high-tech solutions, including 5G RAN and transport, Wi-Fi systems, and defence electronics. Its robust R&D centres in India and abroad continuously innovate cutting-edge products. Manufacturing facilities across India produce high-quality optical fibre, cables and telecom equipment, aligning with government initiatives like the PLI scheme. HFCL is a trusted partner for customers worldwide, committed to quality, sustainability, and meeting evolving network demands.
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Order Book Update: As of September 2024, the company’s order book stands at Rs 6,151 crore. Out of the total order book, Government orders are worth Rs 4,183 crore and private company orders are worth Rs 1,968 crore.
The company has a market cap of over Rs 15,000 crore. The stock is up by 31.5 per cent from its 52-week low of Rs 81.22 per share and gave multibagger returns of 510 per cent in 5 years. Investors should keep an eye on this multibagger telecom infrastructure stock.
Disclaimer: The article is for informational purposes only and not investment advice.