HFCL jumped 6.62% to Rs 125.60 after the company announced that it was exempted from anti-dumping duties imposed by the European Commission on Indian optical fiber cable (OFC) manufacturers.
In the decision issued by the European Commission, it was determined that HFCL is the only Indian company not engaged in dumping of optical fibre cable (OFC) in European markets whereas provisional anti-dumping duty has been determined on all other Indian optical fiber cable manufacturers in the statement.This makes HFCL as the only Indian optical fiber cable manufacturer to have been exempted from anti-dumping duties by European Commission.
The complaint was lodged on 3rd October 2023 by Europacable on behalf of the European industry of optical fiber cables, alleging that imports of OFC, originating from India, were being dumped and were causing injury to the European industry.
The European Commission subsequently conducted an extensive investigation of all relevant Indian OFC manufacturers products, infrastructure and financial data.
During the mid of November 2023, notices were sent to Indian OFC manufacturers. European Commission requested initial sales data from export producers within a week. Thereafter, Extensive data on manufacturing, sales, exports, and pricing for October 2022 to September 2023 were provided within a months timeline, as required by the European Commission.
The European Commission then requested data for the previous three financial years, along with detailed records for the investigation period.
Also Read
Earlier this year in April, all information and data were meticulously verified by European Commission with intensive validation conducted at the premises of all relevant Indian manufacturers by sending its officials to India on multiple aspects to determine whether Indian manufacturers were undercutting prices to sell products in Europe compared to its domestic sales prices on below their cost.
After thorough investigation, the European Commission ruled in June 2024 that anti-dumping duties would not apply to the Indian exporting product of the HFCL Group, which includes HFCL and HTL, as no evidence of dumping was found. Anti-dumping duty was however, levied on all other Indian manufacturers of OFC against which these manufacturers have legal recourse. This decision of the European Commission has proven transparent and fair business practices of HFCL.
HFCLs products have been preferred by European telecom operators, as they meet the quality, reliability and safety standards, are commercially viable, and guarantee a sustainable supply for the construction of Europes telecom infrastructure. The company has been operating in Europe for over a decade and is having long term engagements with some of the leading telcos and ISPs in many countries of Europe.
Mahendra Nahata, Managing Director, HFCL, said, This decision is a huge achievement for us and speaks volumes about the trust that we have garnered globally for our fair-trade practices and transparency of processes. We have always focused on delivering high-quality, flexible and cost-effective solutions, backed by our commitment to innovation and excellence in the telecommunications industry. We firmly believe that this decision will enable us to play a central role in Europes digital transformation.
HFCL is a leading technology company specializing in creating digital networks for telcos, enterprises, and governments. Over the years, HFCL has emerged as a trusted partner offering sustainable high-tech solutions with a commitment to providing the latest technology products to its customers. HFCLs strong R&D expertise coupled with its global system integration services and decades of experience in fiber optics enable it to deliver innovative digital network solutions required for the most advanced networks.
The company's consolidated net profit surged 53.2% to Rs 110.06 crore in Q4 FY24 as compared with Rs 71.82 crore recorded in Q4 FY23. However the revenue from operations fell 7.5% YoY to Rs 1,326.06 crore in Q4 FY24.
The scrip hit 52 week high at Rs 129 in intraday today.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content