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HomeMarket NewsHFCL wins five-year contract worth $1.1 billion for supply of optical fiber cables
The company said it has entered a five-year supply agreement with a customer to supply high-quality, high-fibre-count optical fiber cables, via its overseas wholly-owned subsidiary.
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Shares of HFCL Ltd. opened slightly higher on Friday, March 13, but are now trading lower, erasing early gains even after the company won a contract with a total potential value of $1.1 billion, equivalent to ₹10,159 crore.
The company said it has entered a five-year supply agreement with a customer to supply high-quality, high-fibre-count optical fiber cables, via its overseas wholly-owned subsidiary.
HFCL, in an exchange filing, said minimum quantity of multi-million fiber kilometer (fkm) of high-quality, high-fibre-count OFC is to be supplied in each calendar year starting from 2026 to 2028, which will automatically extend to two additional calendar years — 2029 and 2030.
The purchase orders will be released periodically during the contract period based on project-wise and specification-wise requirements, it said.
As per the agreement terms, the wholly-owned subsidiary is also eligible to supply OFC to the assignees and authorized affiliates of the customer.
On another note, last month, the company said it has joined a consortium for a department of telecommunications (DoT) funded research project led by IIT-Delhi to advance hollow-core fiber technology for next-generation communication networks.
HFCL shares ended the previous session 3% up at ₹74.3 apiece. The stock has gained 6.5% in the past month.
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