HFCL zooms up 4%

HFCL is up almost 4% currently at Rs.24 levels and remains very firmly in the green zone. Volumes are up some 1.2 times. Its 52-week high and low is at Rs.36.65 and Rs.17.20 respectively.

HFCL 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 Rs.48 crore 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 Rs.355 crore 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.

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 Rs.50 crore 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.

Company is also setting up a Greenfield Optical Fibre Manufacturing Facility at Hyderabad as a backward integration with a capex of Rs.228 crore, 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.