Himachal Futuristic Communications Limited (HFCL) is pleased to announce that it has won orders of INR 502.73 Crores for supply of Optical Fibre Cables (OFC) from Larsen & Toubro (L&T) and a consortium led by ITI.
Order from L&T amounts to INR147.73 Crores for supply of 16,882 KM OFC which shall be used by L&T for creating OFC Network infrastructure in Andhra Pradesh under BharatNet Phase-11 Project. Another such key order has been received from ITI Led Consortium valued at INR INR355 Crores for supply of 37,798 KM OFC to be deployed by them in Maharashtra under BharatNet Phase-11 Project. BharatNetProgramme forms one of the key pillars of Digital India Program. It is a project of national importance envisaging broadband connectivity for 2,50,000 Gram Panchayats in the country. Apart from contributing to the domestic projects, HFCL has been exporting OFC for prestigious broadband projects in Europe. HFCL exports optical fibre cables to more than SO countries worldwide and its consistent efforts will help increase its global market share. Due to quality products, Company's OFC is in huge demand with repeat orders from reputed customers leading to the existing capacity fully utilised. Considering above, HFCL is putting up a Greenfield OFC manufacturing facility in Hyderabad with an estimated capex of INR110 Crores which would manufacture 10.50 million fibre kilometre (FKM) OFC p.a.. This would take Company's standalone OFC capacity from existing 8 million FKM p.a. (at Goa Plant) to 18.50 million FKM p.a.. The commercial production will start at new Facility by June, 2019. In addition, the Company with a capex of JNRSO Crores approx, is also expanding OFC manufacturing capacity of its subsidiary HTL Limited in Chennai from existing 4 million FKM p.a. to 7 million FKM p.a. This will enable HTL to also manufacture Ribbon Cables and Cable accessories. The OFC expansion in HTL is likely to be completed by February, 2019 which will take the HFCL's consolidated OFC capacity to 25.50 million FKM p.a.. With the said significant expansion, HFCL is responding to rising demand from its valued customers. The Company with consolidated capacity shall become one of the leading OFC manufacturers in the world. Moreover, keeping in mind fluctuating supply position and prices of optical fibre, the Company is also setting up a Greenfield Optical Fibre Manufacturing Facility at Hyderabad as a backward integration with a capex of INR228 Crores which will enhance its operating margins. This plant will deliver 6.40 million FKM p.a. Optical Fibre in Phase-1. The Plant is designed to scale up to 9.60 million FKM p.a. in a short period. It is expected that the plant will be operational by July, 2019. Shares of HIMACHAL FUTURISTIC COMMUNICATIONS LTD. was last trading in BSE at Rs.23.15 as compared to the previous close of Rs. 23. The total number of shares traded during the day was 796097 in over 1097 trades. The stock hit an intraday high of Rs. 23.6 and intraday low of 22.75. The net turnover during the day was Rs. 18520772. | |
Source: Equity Bulls |
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