Himachal Futuristic Comm gallops on foray into defence equipment manufacturing

Himachal Futuristic Communications surged 10.14% to Rs 15.75 at 14:50 IST on BSE after the company said it is entering into defence equipment manufacturing.

The announcement was made after market hours yesterday, 21 March 2016.

Meanwhile, the S&P BSE Sensex was down 68.08 points or 0.27% at 25,217.29.

On BSE, so far 46.06 lakh shares were traded in the counter as against average daily volume of 32.37 lakh shares in the past one quarter. The stock hit a high of Rs 16.45 and a low of Rs 15.50 so far during the day. The stock had hit a 52-week high of Rs 24.70 on 12 January 2016. The stock had hit a 52-week low of Rs 9.16 on 9 June 2015. The stock had underperformed the market over the past one month till 21 March 2016, sliding 19.89% compared with Sensex's 6.65% rise. The scrip had also underperformed the market in past one quarter, declining 20.11% as against Sensex's 1.75% fall.

The small-cap company has equity capital of Rs 123.94 crore. Face value per share is Rs 1.

Himachal Futuristic Communications (HFCL) said it is entering into defence equipment manufacturing as part of its strategy to contribute to the nation's plan for self sufficiency in the defence sector by participating in the defence equipment manufacturing under the Government of India's Make in India initiative. The company said it has already been granted industrial licences for a range of products which includes electronic fuses, electro optical devices and communication equipment along with permits for assembling electronic warfare systems, radars and the design, development and manufacturing of aircrafts, including helicopters. It is in discussions with global original equipment manufacturers (OEMs) for a tie up to produce equipment in an array of expanses, HFCL said.

Himachal Futuristic Communications' net profit rose 66.8% to Rs 70.16 crore on 1.3% decline in net sales to Rs 592.74 crore in Q3 December 2015 over Q3 December 2014.

Himachal Futuristic Communications is a leading telecom infrastructure developer, system integrator and manufacturer of high-end telecom equipment and optical fibre cables.

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