HFCL rose 3.56% to Rs 24.75 after the company said it started commercial production of Fiber-to-the-home (FTTH) cables from new facility in Hyderabad.
HFCL said its new FTTH cable manufacturing facility at Hyderabad has commenced commercial production of optical fiber cables for fiber to home applications from 16 December 2020. With this, the company, along with its subsidiary company, HTL, has become the largest manufacturer of FTTH cables in India with a capacity of 6 lakh kms per annum.The company had earlier invested Rs 260 crore in Hyderabad plant for the manufacturing of optical fiber that was commissioned in January 2020. This new automated high-speed FTTH cable facility has come up with a fresh outlay of Rs 40 crore to ensure high throughput, economies of scale and highest quality standards. Thus far, Rs 300 crore have been invested in Hyderabad facility as part of the company's expansion road map.
The FTTH cable plant has backward integration for supplies of major raw materials like optical fiber and ARP rods from the firm's existing manufacturing facilities, further strengthening the supply chain. Apart from supplying FTTH cables to telecom service providers in India, HFCL will also be exporting them to more than 30 countries where the company is already having its presence. HFCL will be marketing the FTTH cables under its brand name. The company's R&D facilities are developing different variants of new cables which will also be manufactured from the newly set up facility at Hyderabad.
HFCL reported 19.1% fall in consolidated net profit to Rs 53.32 crore on a 7.6% rise in net sales to Rs 1,054.32 crore in Q2 September 2020 over Q2 September 2019.
HFCL is a telecom infrastructure developer, system integrator and manufacturer of high-end telecom equipment and optical fibre cables, having its manufacturing facilities at Solan, Goa and Chennai.
The scrip hit a 52-week high at Rs 25.35 in intraday today.
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