Himachal Futuristic Communications Limited, a leading Indian telecommunication equipment and optical fiber cable manufacturer, has presented another big proof of its strong hold in the global market. The company has received a huge export order worth approximately Rs 834.36 crore from a reputed international customer. According to the official information shared by the company, this important contract has been won by HFCL through its foreign subsidiary, under which state-of-the-art optical fiber cables will be supplied. A target has been set to complete this mega project in a time bound manner by June 2027. However, following the commercial confidentiality and contractual terms, HFCL has not disclosed the name of this international customer. Despite this big business achievement, the effect of profit booking was seen in the stock market. Shares of HFCL Limited had opened strongly at Rs 215.25 on the National Stock Exchange (NSE), but by 12:30 pm it had registered a decline of about 1.83 per cent and till the time of writing the news, the stock was seen trading around Rs 208.50. Demand for optical fiber increased due to influx of AI data centres, mega order worth Rs 2,329 crore was received in September also. Expressing happiness on receiving this new export contract, the company management says that this order reflects the unwavering trust of global customers on HFCL's world-class manufacturing capabilities, quality standards and excellent technology. According to industry experts, due to the rapid expansion of Artificial Intelligence (AI) and hyperscale data centers across the world, the need for high-speed connectivity has increased manifold, which has led to an unprecedented surge in the demand for optical fiber cables in the international market. It is noteworthy that the process of receiving big orders from foreign markets for HFCL is continuing. Just before this, in the month of September also, the company had received another big export order worth about Rs 2,329 crore from a foreign customer. With these large international contracts coming in, the company's order book has reached a very strong position, which will ensure revenue continuity for many quarters to come. There was a great jump in the results of the second quarter, the company's profit increased from Rs 72 crore to Rs 394.22 crore. Along with this glow of new orders, the financial performance of HFCL in the second quarter (Q2) has also been very excellent and much better than the expectations. During the second quarter of the current financial year, the consolidated net profit of the company has jumped manifold and reached a record level of Rs 394.22 crore, whereas in the same quarter of the last financial year, the company's profit was only Rs 72 crore. Along with profits, the company's total income i.e. revenue has also registered a tremendous increase. HFCL's operating revenue has doubled to Rs 2,541.79 crore in the second quarter. Analysts believe that the company has seen this historic jump in profits due to increased sales of high-margin optical fiber products and improvement in operational efficiency. Estimate of 80% revenue growth in financial year 2027, Board approves investment of Rs 400 crore for capacity expansion. HFCL management also seems very excited and confident about future development plans. The company has estimated a huge increase of up to 80 percent in its revenue in the upcoming financial year 2027. Not only this, the company is confident that it will achieve the ambitious target of annual revenue of Rs 10,000 crore much ahead of its scheduled time i.e. FY 2029. To meet this huge demand coming from Artificial Intelligence data centers and global telecommunication networks, the Board of Directors of the company has decided to further strengthen its manufacturing infrastructure. Under this, the Board has given its official approval to the new capital investment (capex) of Rs 400 crore with the aim of expanding the optical fiber production capacity of the company, which will further strengthen the global competitiveness of the company in the coming years.
