HFCL shares rise 2% on securing ₹2,510.3 crore contract from BSNL; check key details

Domestic telecom gear maker became the first company to sign an agreement with BSNL as the Project Implementation Agency under the BharatNet Phase-III Programme for executing a project worth ₹2,501.3 crore in the Punjab Telecom Circle. The company will now take immediate steps to commence project implementation.

Shares of HFCL advanced 1.26% during the intraday trade to ₹89.89 apiece on BSE. It closed at ₹91.09 rising 2.61%.

On January 16, HFCL received an advance work order from Bharat Sanchar Nigam (BSNL) for ₹2,501.30 crore for executing the said project.

“We are proud to inform all stakeholders that today, HFCL has become the first company to sign an agreement with BSNL as the Project Implementation Agency (“PIA”) under the BharatNet Phase-III Programme for executing this project in the Punjab Telecom Circle. The company will now take immediate steps to commence project implementation,” HFCL had said in an exchange filing on February 19.

On Wednesday, shares of the company jumped 6.35% on BSE to settle at ₹88.77 apiece.

Last week, HFCL’s managing director Mahendra Nahata had said that it is betting big on growth from overseas sales and uptake of defence supplies as the company looks to become a ₹10,000-crore revenue enterprise.

"We are increasing our presence by appointing our own employees, distributors, and dealers in key global markets. Our goal is to achieve a substantial rise in export revenue from our optic fibre segment, with a significant portion of revenue coming from international markets in the coming years. Additionally, we aim for a considerable share of our telecom segment revenue to be export-driven," Nahata had said.

In the December quarter, the company bagged an advance work order worth about ₹2,501.30 crore for the design, supply, construction, installation, upgrade, operation, and maintenance of the middle-mile network of BharatNet Phase III in the Punjab Telecom Circle.

In addition, the company has also secured advance purchase orders worth ₹2,167.65 crore from Rail Vikas Nigam Ltd for the supply and maintenance of optical fibre cables and telecom gears for the BharatNet Phase III in Uttar Pradesh (East) Telecom Circle and Uttar Pradesh (West) Telecom Circle.

The company during the quarter inaugurated a defence manufacturing unit in Hosur.

Gururgram-based HFCL Limited is a technology company which designs, develops, manufactures telecommunications equipment, fibre-optic cables and other related electronics.