Telecom Equipment Maker HFCL Bags Rs 2,501-Crore Order From BSNL

HFCL Ltd. on Thursday said that it has received an order of about Rs 2,501 crore from state-owned telecommunications company Bharat Sanchar Nigam Ltd.

According to the exchange filing, the telecommunications equipment manufacturer stated that it has received an advance work order totaling approximately Rs 2,501.3 crore from BSNL.

This order entails designing, supplying, constructing, installing, upgrading, as well as operating and maintaining the middle-mile network of BharatNet Phase III in the Punjab telecom circle.

The Gurugram-based company has been given three years for construction and upgrades of the network.

This will be followed by 10 years of maintenance contract.

During the first five years of the maintenance contract, the company will receive operating expenditure at the rate of 5.5% per annum of capex. For the subsequent years, it will receive expenditure at the rate of 6.5% per annum of capex.

Giving a breakup of the order, the filing said that it is split into a capex of approximately Rs 1,244.61 crore, operating expenditure for newly constructed network of approximately Rs 746.76 crore. It also includes an operating expenditure of approximately Rs 509.94 crore for the existing network.

Meanwhile, on Dec. 31, 2024, the company had intimated via stock exchange filings that its executive director of growth strategy, Subodh Kumar Garg, who was also among the senior management personnel, would retire from the services of the company from the closing of business hours on that day.

Shares of HFCL Ltd. closed 5.40% higher at Rs 102.40 apiece on the BSE, compared to a 0.42% advance in the benchmark Sensex. The company filed the disclosure about winning the order from BSNL after market hours on Thursday.