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HFCL to expand presence in Europe, stock up 3%
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1 min read | Updated on February 21, 2024, 16:57 IST
SUMMARY
Himachal Futuristic Communications Limited (HFCL), a key manufacturer of telecommunications equipment, has announced plans to expand its presence in Europe. The company has approved the setting up of a state-of-the-art optical fibre cable (OFC) manufacturing facility in Poland.
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The establishment of the manufacturing facility in Poland will be facilitated through the incorporation of a new step-down subsidiary in Poland under HFCL B.V., a wholly-owned subsidiary of the company in the Netherlands.
The demand for OFC in Europe to grow at a CAGR of 4.5% to 90 MFKM by 2028. The company wants to bolster its presence in Europe with a target to significantly increase its export revenue share in its OFC vertical revenue from 30% to 70% within the next 4-5 years.
On the earnings front, the company posted a weak performance on topline as well as bottomline. The revenue for the Q3FY24 saw a 4.9% year-on-year (YoY) drop, while net profits declined by 20% YoY in the same period.
Following the announcement, shares of HFCL closed 0.77% higher on Wednesday.
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