Telecommunications company HFCL has bagged an order worth Rs 2,666 crore from PSU– Rail Vikas Nigam. The contract which pertains to the supply of telecom equipment expands its partnership with RVNL.
Earlier, the PSU had awarded contracts worth Rs 2,167 crore to the company for BharatNet Phase-III projects in Uttar Pradesh.
HFCL-RVNL: Order details
Under the scope of work, HFCL will supply telecom equipment and related accessories to RVNL. This also includes the installation and commissioning of these accessories. Additionally, the tech firm will create an optical fiber cable telecom network for RVNL.
HFCL will be responsible for the maintenance of the project for a period of 10 years, which also comprises a one-year warranty period.
The contract’s value stands at Rs 2,666.09 crore, which comprises capital expenditure worth Rs 1,192.82 crore and operating expenses of around Rs 1,473.27 crore. The order is domestic in nature and will be executed within a time frame of two years followed by 10 years of operation and maintenance, taking the overall engagement period to 12 years.
HFCL-RVNL: Order history
In January, RVNL had awarded the company with a contract worth Rs 2,167 crore for its BharatNet Phase-III project in East and West telecom circles of Uttar Pradesh.
“The Company continues to strengthen its position in the telecom network domain and remains committed to delivering high-quality execution of large-scale digital connectivity projects,” it said in its exchange filing.
HFCL, RVNL share price
HFCL’s stock ended Wednesday’s trade flat at Rs 189.10. Over the past one month its stock has delivered a return of over 35%, while so far this year it has increased by a whopping 174%.
Meanwhile, RVNL’s share price ended today’s trade at Rs 245.60, up nearly 2%. Over the past one month its share price has fallen by 11%, while so far this year it has declined by 32%.