Telecom stocks soar 4% after completion of Tennessee defense plant
Shares of the leading technology company and provider of integrated next-generation telecom products and solutions surged around 4% on the BSE to touch Rs. 116.65 on Tuesday, following the inauguration of a defense manufacturing facility in Hosur to boost domestic defense manufacturing.
With a market capitalization of Rs. 16,540.2 crores, as of 2:28 PM; HFCL Limited It was trading in the green at Rs. 114.65, up nearly 2% compared to the previous closing price of Rs. 112.55.
What’s new:
HFCL Limited has announced setting up of an advanced defense equipment manufacturing facility in Hosur, Tamil Nadu, according to a regulatory filing with the stock exchanges.
This strategic achievement reflects the company’s commitment to strengthening India’s defense manufacturing independence in line with India’s Atmanirbhar Bharat vision.
Facility introduction:
The facility will produce advanced thermal imaging weapons sights, electronic fuzes, high capacity radio repeaters (HCRRs) and surveillance radars designed to meet the changing requirements of the Indian Armed Forces as well as defense forces around the world.
The facility has the capacity to manufacture up to 5,000 thermal imaging weapons sights, 250,000 electronic fuzes for artillery, and 1,000 each of HCRR and ground surveillance radar per year.
The defense manufacturing facility includes 10,000 class and 1,00,000 class cleanrooms dedicated to the production of thermal imaging cores and thermal imaging weapon sights.
finances:
HFCL reported a slight decline in operating revenue, down nearly 1.6% year-on-year from Rs. 1,111.5 crores in the second quarter of FY24 to Rs. $109.36 billion in the second quarter of fiscal 2025.
In comparison, the company’s net profit increased by 50 billion won. 70.2 crores to Rs. During the same period, sales amounted to $73.3 billion, a slight increase of about 4.5% compared to the same period last year.
EBITDA in the second quarter of FY25 also increased by about 14.8% year-on-year to Rs. 171.8 crores, up from Rs. $149.7 million in Q2 FY24 and EBITDA margin increased 224 bps from 13.47% to 15.71%.
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Key highlights for the second and first half of 2025:
HFCL has been selected to develop and supply key subsystems for General Atomic, ASI’s advanced unmanned aircraft system (UAS). This collaboration positions the company as a key contributor to one of the world’s most sophisticated unmanned aerial vehicles (UAVs).
The company has delivered one of the world’s largest advanced broadband network gateway (BNG) projects to Bharat Sanchar Nigam Limited (BSNL).
HFCL has launched high-density single-jacketed single-armor IBR (intermittent bonded ribbon) cables to meet evolving network deployment demands as data centers, metro networks grow, and has also expanded its Nano Thin product line of loose-tube micro cables. , FTTx in North America.
Inventory performance:
While the stock has had a positive return of nearly 33.2% over the course of a year, it has registered a negative return of around 2.1% over the past six months. So far in 2024, HFCL’s stake has delivered a positive return of around 35%.
About us:
Established in 1987, HFCL Limited is a diversified telecommunication infrastructure enabler actively interested in telecommunication infrastructure development, system integration, manufacturing and supply of advanced telecommunication equipment – Optical Fiber and OFC (Optical Fiber Cable).
Written by Shivani Singh
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