Shares of a leading technology enterprise and integrated next-gen communications product and solution provider surged nearly 4 percent on BSE to Rs. 116.65 on Tuesday, after inaugurating Defence Manufacturing Facility in Hosur to boost domestic defence manufacturing.
With a market cap of Rs. 16,540.2 crores, at 02:28 p.m., the shares of HFCL Limited were trading in the green at Rs. 114.65, up by nearly 2 percent, as against its previous closing price of Rs. 112.55.
What’s the News:
HFCL Limited, according to the regulatory filings with the stock exchanges, announced the inauguration of its advanced defence equipment manufacturing facility in Hosur, Tamil Nadu.
This strategic achievement reflects the company’s commitment to strengthening India’s self-reliance in defence manufacturing, aligning with the nation’s Atmanirbhar Bharat vision.
About the Facility:
The facility will produce advanced Thermal Weapon Sights, Electronic Fuzes, High Capacity Radio Relays (HCRR) and Surveillance Radars, designed to meet the evolving needs of India’s armed forces as well as global defence forces.
The facility has a manufacturing capacity of up to 5,000 Thermal Weapon Sights, 2.5 lakh Electronic Fuzes for artillery guns and 1,000 units each of HCRR and Ground Surveillance Radars, annually.
The defence manufacturing facility includes 10,000 Class and 1,00,000 Class clean rooms dedicated to the production of Thermal Imaging Cores and Thermal Weapon Sights.
Financials:
HFCL reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of nearly 1.6 percent, falling from Rs. 1,111.5 crores in Q2 FY24 to Rs. 1,093.6 crores in Q2 FY25.
In contrast, the company’s net profit increased from Rs. 70.2 crores to Rs. 73.3 crores over the same period, representing a slight growth of around 4.5 percent YoY.
EBITDA for Q2 FY25 also increased by about 14.8 percent YoY to Rs. 171.8 crores, up from Rs. 149.7 crores in Q2 FY24, with the EBITDA margin rising by 224 bps, from 13.47 percent to 15.71 percent.
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Key Highlights for Q2 & H1 FY25:
HFCL was selected to develop and supply critical sub-systems for General Atomic – ASI’s advanced Unmanned Aircraft Systems (UAS). This collaboration positions the company as a key contributor to one of the world’s most sophisticated Unmanned Aerial Vehicles (UAVs).
The company delivered one of the world’s largest advanced Broadband Network Gateway (BNG) projects for Bharat Sanchar Nigam Limited (BSNL).
HFCL introduced high-density single-jacket single-armour Intermittently Bonded Ribbon (IBR) cables and also expanded its Nano Thin product line of loose tube micro cables, to meet the evolving demands of network deployments driven by the growth of data centres, metro networks, and FTTx in North America.
Stock Performance:
The stock has delivered positive returns of nearly 33.2 percent in one year, while around 2.1 percent of negative returns in the last six months. So far in 2024, the share of HFCL has given positive returns of about 35 percent.
About the Company:
Established in 1987, HFCL Limited is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, Optic Fiber and Optic Fiber Cable (OFC).
Written by Shivani Singh
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