The Opportunity Landscape Continues To Become Bigger And Brighter For HFCL

Can you please give an overview of the business of HFCL?

Having commenced our journey as telecom equipment and optical fiber cable manufacturer three decades ago, we have fast transformed into a developer of highly secure, reliable and modern communication networks for telecom, defense, railway, urban administration, and consumer application.

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The Company’s activities cover the entire value chain from manufacturing of Optical Fibre Cables, high-end transmission and access equipment, surveillance products to implementation of communication networks. The Company specializes in providing turnkey solutions to telecom service providers, railways, defense, smart city & surveillance projects and has deployed more than 25,000 cell sites and laid over 1,00,000 km of OFC network.

What kind of growth opportunities you are looking in coming three to four years?

Company has witnessed significant growth in the last few years at 40% plus CAGR in the last three years. I believe future also continues to hold good for us. Current order book of Rs 11,350 crores with further bids in pipeline ensure our earning visibility. Looking ahead into the future, the opportunity landscape continues to become bigger and brighter for an integrated telecom solution provider like us. Policy initiatives towards robust digital communication infrastructure will see huge telecom infrastructure development and extensive fiberisation. With aggressive 4G and FTTH rollout along with 5G on the anvil, networks shall become denser and deeper – thereby creating more demand for the Company’s products and services. Further, Modernization of Railway Communication & Signalling System, ‘Make in India’ thrust for Defence Procurement and continued investments towards Smart Cities & Surveillance shall amplify HFCL’s growth prospects.

What has led to slow demand for Optical Fiber Cable? What is your outlook on the demand of OFC?