HFCL gains on bagging Rs 2,501-cr order from BSNL

HFCL advanced 2.93% to Rs 105.40 after the company secured an advance work order (AWO) of approximately Rs 2,501.30 crore from Bharat Sanchar Nigam (BSNL) to construct middle mile network in Punjab.

The project involves the design, supply, construction, installation, upgrade, operation, and maintenance of the middle-mile network for BharatNet Phase III in the Punjab Telecom Circle.

The contract will be executed under the design, build, operate, and maintain (DBOM) model, with the construction phase slated for completion in three years.

Following that, a 10-year maintenance contract will be in place, with operational expenditure (OPEX) set at 5.5% per annum of CAPEX for the first five years and 6.5% per annum for the next five years.

The total consideration includes Rs 1,244.61 crore for capital expenditure (capex), Rs 746.76 crore for the newly-constructed network's opex, and Rs 509.94 crore for the opex of the existing network.

HFCL is a leading technology company specializing in digital networks for telcos, enterprises, and governments. With its strong R&D expertise and global system integration services, HFCL offers innovative solutions like 5G RAN, 5G Transport, Wi-Fi, and defense electronics. The company has manufacturing plants in India and a global customer base, committed to quality and environmental sustainability.

The company's consolidated net profit rose 4.50% to Rs 73 crore on a 1.61% decline in revenue to Rs 1094 crore in Q2 September 2024 over Q2 September 2023.

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