HFCL Extends Gains After Its Subsidiary Bags A ₹1,366 Crore Order

Homegrown telecom gear maker HFCL’s shares surged as much as 8% on Thursday, extending a two-day rally after its material subsidiary, HTL Limited, bagged a substantial domestic order worth approximately ₹1,366 crore for the supply of optical fiber cables.

The company also announced that it has entered into a five-year supply agreement with a customer for the supply of high-quality, high-fibre count Optical Fiber Cables through its overseas wholly owned subsidiary.

Earlier in March, HFCL announced its foray into aeronautics manufacturing. It also consolidated its defence business under a new entity, which was set to commence operations with a total order book of ₹1,680 crore.

“These orders reaffirm the confidence reposed by our customers in the Company’s manufacturing capabilities, technological excellence and product quality,” the company said in an exchange filing yesterday.

HFCL’s shares have jumped by nearly 18% in the past month and 25% in the past three months. As of March 31, 2023, the company’s order book stood at ₹7,685 crore. Out of the total order book, Government orders are worth ₹5,630 crore and private company orders are worth ₹2,055 crore.

HFCL₹80.93 +7.66%