HFCL bags Rs 3,329 cr order from BSNL, stock surges 5%

New Delhi, Aug 20 (IANS) Himachal Futuristic Communications Ltd (HFCL) on Tuesday said it has bagged Rs 2,467 crore order, its largest purchase order so far, for a turnkey project from public sector telecom service provider BSNL.

“The project has an additional operations and maintenance (O&M) component of Rs 862 crore to be realised over a period of 10 years from the commissioning of the project,” the company said.

The combined value of the project, therefore, stands at Rs 3,329 crore. The project is to be completed within 18 months.

Investors reacted positively to the new order with the HFCL stock surging 5.31 per cent to Rs 19.85 on the BSE on Tuesday even as the market closed in red.

Funded by the Department of Telecom (DoT), the turnkey project entails design, development, deployment and maintenance of converged nationwide IP/MPLS backbone with 219 X Access Networks and Integrated IMS based communication solutions under Network for Spectrum (NFS) programme of the Central government.

“We are proud to have been awarded this prestigious project. This advanced next generation network would be very critical communication network for Indian Army,” HFCL Managing Director Mahendra Nahata said.

He also said that the project shall add to the company’s profitability and cash flows besides augmenting revenue growth.

“The O&M component, at the same time, shall contribute to the profitability of the Company over a fairly long term,” Nahata added.

–IANS

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