Himachal Futuristic Communications Limited (HFCL)‘s stock surged to a 52-week high on the first day of the year after the company won an advance purchase order (APO) worth ₹1,127.27 crores from Bharat Sanchar Nigam Limited (BSNL).
What Happened: The order is to transform BSNL’s optical transport network (OTN) infrastructure across its pan-India network.
The scope of work outlined in the APO includes the design, planning, architecture, engineering, supply, installation, commissioning, and system integration of OTN equipment throughout BSNL’s network in India. HFCL aims to enhance BSNL’s network capabilities through OTN upgrades at more than 300 large network nodes and 2000 amplifier sites.
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The entire installation process is anticipated to be completed within 18 months.
Upon the successful commissioning of the OTN Project, a one-year warranty period will commence, followed by HFCL providing operation and maintenance (O&M) services for three years, along with a comprehensive annual maintenance contract (AMC) spanning eight years, running concurrently.
Despite a 15.2% decline in net profit to ₹69 crore in Q2, HFCL’s strategic, the successful execution of the BSNL project could contribute to the company’s growth trajectory.
Price Action: HFCL’s share price was up 3.33% at ₹86.95 in early trade on Monday.
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