Private defence firms keen on Make in India

HFCL is just one of the private firms eyeing defence projects. Between January 2001 and February 2016, the commerce ministry has granted 333 industrial licences to private firms for defence manufacturing, according to data on the department of industrial policy and promotion (DIPP) website.

Domestic telecom equipment maker Himachal Futuristic Communications Ltd (HFCL) is known for two things: in the late 1990s, it made outrageous bids for telecom licences and later on it had its share of run-ins with the capital markets regulator for its suspected involvement in rigging share prices in a case dating back to 1999-2001.

But that’s the past and it’s makeover time as the company, with revenue of Rs.2,553 crore in 2014-15, has won government licences to design, develop and manufacture aircraft and unmanned aerial vehicles.

HFCL in talks with global defence electronics manufacturers for JV

KOLKATA: Himachal Futuristic Communications (HFCL) will shortly float a joint venture company with a global partner to manufacture defence electronics and communication systems in India, a person aware of the development said.

The homegrown telecom gear and optic fibre cable maker had recently announced plans to diversify into the defence gear manufacturing space, which is slated to grow into a $50-billion opportunity in the next five years, according to experts.

HFCL is in advanced talks with some Tier-1 global defence electronics makers for the proposed joint venture (JV). “HFCL is likely to soon zero in on a foreign partner for the proposed JV, and will be the majority stakeholder,” the person cited earlier told ET. The proposed JV will include a technology-transfer pact, he said.

Foreign ownership in defence JVs is capped at 49 per cent.

HFCL plans to manufacture high-end defence electronics and critical infrastructure security systems at its existing factories in Solan and Chennai, and at its upcoming plant in Gurgaon, the person cited earlier said. The Guragon plant is likely to be operational in three months.

The critical infrastructure security gear will be meant to secure India’s defence establishments, including air bases and cantonment zones. HFCL has bagged industrial licences to locally manufacture a host of defence electronics products, including radars, night vision devices, electronic warfare systems and radio communications equipment.

HFCL chairman Mahendra Nahata declined to comment on the defence JV-related discussions or on the identity of potential partners.

Nahata, however, said: “HFCL is strongly committed to the Modi government’s ‘Make In India’ drive, and would locally manufacture the gamut of defence electronics equipment, that was, hitherto, being imported”.

The company, he said, has recently bid for supplying equipment for a secure wide area network for the armed forces. “Cisco and Microsoft are our technology partners for the Army Wide Area Network (AWAN) project for which HFCL has bid,” said Nahata. Further, he said, HFCL would manufacture communications and signalling equipment for the railways at its telecom factories.

Over the next three to five years, the company plans to invest about Rs 500 crore in augmenting existing manufacturing lines for locally churning out specialised electronics gear for both the defence and railways sectors. The funds would be raised through a combination of internal accruals and debt. At present, HFCL’s revenues come entirely from the telecom gear business, but in the next three years, Nahata expects as much “as 40 per cent of annual revenue to stem from the new defence and railways verticals”. The company has a turnover of Rs 2,500 crore.

HFCL to enter defence equipment production

Telecom solutions provider Himachal Futuristic Communications Ltd is all set to enter defence equipment manufacturing business as part of its ‘Make in India’ initiative.

The Delhi-based company has already obtained industrial licences to manufacture a wide range of products for the defence sector such as electronic fuses, electro optical devices, communication equipment, including the permits to assembling electronic warfare systems, development and manufacturing of aircrafts and helicopters, the company stated in a press release on Monday.

“Our aim of getting into defence manufacturing is to bring in world-class technologies to the country, cut down import on defence products and make available state-of-the-art technologies to our soldier,” said Mahendra Nahat, MD, HFCL.

The company is also in talks with global OEMs for strategic tie-up to produce equipments to make India its global exporting hub for defence manufacturing and engineering.

HFCL won a sub-project to lay optical fibre cable for defence as part of the pan-India project – Network for Spectrum (NFS).

HFCL Q3 net profit rises 67% to Rs 70 crore

“Home-grown telecom gear maker HFCL today reported a jump of 66.76 per cent in its standalone net profit at Rs 70.16 crore for the three months period ended December 31, 2015.

Himachal Futuristic Communications Limited (HFCL) had posted a net profit of Rs 42.07 crore in the same period a year ago.”

HFCL Q2 net profit rises 4 per cent to Rs 71.68 crore

“Domestic telecom gear maker HFCL today reported 3.97 per cent increase in standalone net profit at Rs 71.68 crore for second quarter ended September 30 on the back of cost control.

The company had posted a net profit of Rs 68.94 crore in the same period a year ago.

“We have seen an increase in profits due to cost control and improved margins. Our optical fibre cables and turnkey projects have been the major contributors to our overall growth,” HFCL Managing Director Mahendra Nahata said in a statement.

Himachal Futuristic Communications Limited (HFCL), which manufactures telecom equipment and optical fibre cables as well as executes telecom turnkey contracts, reported decline in net sales by 9.69 per cent to Rs 587.52 crore in the reported quarter from Rs 650.58 crore in corresponding quarter of 2014-15.

“The revenue in the second quarter is marginally low due to the rainy season, which impacts project implementation. However, the outlook for the second half looks bright. Besides this, we have seen a huge jump in exports in the first half of the year,” Nahata said.

The company’s exports increased by 78 per cent to Rs 20 crore from Rs 9.09 crore in same quarter a year ago.

HFCL has started exporting to UK, Poland, South Africa, Qatar, Dubai, Malaysia, Iran, Bangladesh, Nepal, and Morocco, he added.

The employee benefits expenses at HFCL reduced by about 37 per cent during period under review.

HFCL spokesperson said that the reduction was a result of the company moving around 2,000 out of its about 5,000 employees to clients’ payroll after completion of project for operation and maintenance.

HFCL had an order-book of around Rs 2,700 crore in the reported quarter which included Rs 1,500 crore orders for 4G services project, the spokesperson said.

“In order to increase the capacity for manufacturing of optical fibre cables, the company is setting up manufacturing facility in Chennai, under our subsidiary called HTL Ltd.

“The commercial production is likely to commence from November 15 onwards. The impact of this expansion will be visible in the next fiscal,” Nahata said.

HFCL recently ventured in to manufacturing of electronic warfare for defence segment and sees as one of the pillars for company’s growth in future.

“With the government’s increased impetus to enhance indigenous procurement for the defence segment, the company has received various industrial licenses for the manufacturing of electronic warfare systems, radars, UAVs, night vision system, electronic fuzes and CBRN,” Nahata said.

The company has declared an interim dividend of Rs 3.25 per share on 80,50,000 cumulative redeemable preference shares of Rs 100 each for the financial year 2015-16.

HFCL shares closed 1.95 per cent down at Rs 17.6 apiece, on the BSE today.”

HFCL to start Chennai optical fibre plant from Nov 15

“Himachal Futuristic Communication Ltd (HFCL), manufacturer of optical fibres and telecom equipment said it would start commercial production of optical fibre from its Chennai plant from November 15 onwards.

“The impact of this expansion will be visible in the next fiscal,”” said Mahendra Nahata, managing director, HFCL.

It already has manufacturing facilities in Himachal Pradesh and Goa.

The company, which posted weak revenue growth in July-September quarter, said the sales was impacted by rainy season which impacts project implementation. While its net profit rose 4 per cent year-on-year to Rs 71.88 crore, revenue declined by 9.7 per cent to Rs 587.52 crore.

It is expecting bright prospects in the second half of the current fiscal based on strong order book it has. The total order book as of today stands around Rs 2,700 crore, HFCL said.”

HFCL Q1 net profit jumps 62% to Rs 112 cr

Himachal Futuristic Communications Ltd (HFCL) had posted net profit of Rs 69.47 crore in the same period a year ago.

“Homegrown telecom equipment maker HFCL on Monday reported a 61.78 percent jump in net profit to Rs 112.39 crore during the first quarter ended June 30.

Himachal Futuristic Communications Ltd (HFCL) had posted net profit of Rs 69.47 crore in the same period a year ago.

The net sales of the company remained largely flat at Rs 625.37 crore compared with Rs 618.82 crore year ago.

“Around four years back our full revenue was about Rs 267 crore. Now we have posted sales of Rs 625 crore in a single quarter. Due to cost control and efficient raw material purchase, we have seen improvement in margins. Our profit has gone up significantly to Rs 112 crore,” HFCL’s Managing Director Mahendra Nahata told PTI.

He said that company now has order book of about Rs 3,200 crore which includes order from Indian telecom operators, Railways and Network for Spectrum project among others.

The company has telecom equipment manufacturing facilities at Solan in Himachal Pradesh and optical fibre cable (OFC) manufacturing facilities in Goa.

Besides domestic supplies, HFCL exported telecom gears worth Rs 32 crore to Europe and Middle East countries. “”We hope to export products , mainly OFC, worth Rs 100 crore this year. Last year we expanded our OFC facility and now it is time to reap returns. We are confident of growth from government’s ‘Make In India’ vision, specially in Defence segment,”” Nahata said.

The company is also diversifying business to cater railways and defence projects. “”We have now put in place dedicated team for Railway and Defence. We don’t expect profit from these segments in this year and we should be able to make good business from next year onward,”” Nahata said. HFCL shares closed at Rs 15.03 apiece up 13.61 percent on BSE.”

HFCL net rises 62% to Rs 112 cr on strong optical fibre demand

“Himachal Futuristic Communications Limited (HFCL), which supplies and lays optical fibres for telecom and internet service providers such as Airtel, Aircel and MTS, has posted Rs 112.39 crore profit after tax in the April-June period, a rise of 62% from last year same period as demand for optical fibre surged and because of one-time gain from past investments.

In the same period, HPCL revenue went up by little over 1% to Rs 625.37 crore, compared with Rs 618.82 crore posted last year, supported by demand from optical fibre business as well turnkey services it provides for satellite and radio communication, CDMA mobile networks, and spectrum management solution.

During the period, the company earned Rs 38.25 crore as one time interest from investment made sometime ago, which contributed about a third in improving its net profit. Besides, an impressive nearly three-fold jump in exports revenue at 32 crore also boosted revenue earnings during the quarter, the company said.

The company’s earnings before interest, tax, depreciation and amortization (EBIDTA) rose by 4.30% to Rs.91.54 crore in the first quarter, as compared to Rs 87.77 crore in the corresponding quarter of the previous fiscal.

“”Exports is going to be key thrust area going forward. Due to cost control and efficient raw material purchase, we have seen improvement in margins,”” said Mahendra Nahata, managing director of HFCL. Optical fibre cables are made up of glass and plastic and hence movements in crude oil prices affect the raw material cost.”

HFCL – Code of Practices and
Procedure for Fair Disclosure of Unpublished Price Sensitive Information

Himachal Futuristic Communications Ltd has informed BSE that pursuant to SEBI (Prohibition of Insider Trading) Regulation 2015, the Board of Directors of the Company has adopted a Code of Practices & Procedures for fair disclosure of unpublished price sensitive information on May 14, 2015.

The Board has also adopted a Code of Internal Procedures and conduct for regulating, monitoring and reporting of trading in securities of the Company by insiders on May 14, 2015.

Van Eck Associates Corp buys 69.42
lakh shares of HFCL

On March 20, 2015 Van Eck Associates Corporation bought 69,42,674 shares of Himachal Futuristic Communication (HFCL) at Rs 16 on the NSE

On Friday, Himachal Futuristic Communication ended at Rs 16, up Rs 0.15, or 0.95 percent on the NSE.

On Friday, Himachal Futuristic Communication ended at Rs 16, up Rs 0.15, or 0.95 percent on the NSE.

The share touched its 52-week high Rs 24.30 and 52-week low Rs 7.60 on 15 September, 2014 and 26 March, 2014, respectively.

The company’s trailing 12-month (TTM) EPS was at Rs 1.67 per share. (Dec, 2014). The stock’s price-to-earnings (P/E) ratio was 9.55. The latest book value of the company is Rs 6.12 per share. At current value, the price-to-book value of the company was 2.61.

DragonWave gets follow on orders
for a 4G network roll out

DragonWave, a supplier of packet microwave radio systems for mobile networks, said Friday it has received follow on purchase orders for Horizon Compact+ links from a major Indian 4G provider.

Canada-based telecom gear maker didn’t mention the customer name for these follow on purchase orders. It also didn’t specify any financial details.

DragonWave had earlier partnered with Reliance Jio Infocomm for 5,000 turnkey Horizon Compact+ links in support of the Mukesh Ambani-headed telco’s plan to roll out extensive, nationwide 4G/LTE networks. The partnership was inked in May this year between both the companies.

Jio is in advanced stages of deploying a pan-India, 4G LTE and fiber-to-home network that will provide both broadband and voice communication services.

“India is a very important market and our solutions are ideally placed to deliver cost effective capacity for operators who are modernizing their networks to deliver 4G services. We are pleased to have received additional orders from this key Indian customer to further build out their 4G Network,” DragonWave president and chief executive Peter Allen said in a statement.

In India, the company has a presence in the form of DragonWave HFCL India, which represents a joint venture between DragonWave , and Himachal Futuristic Communications Ltd (HFCL).

Reliance Jio awards packet
microwave radio deal to
DragonWavefor LTE launch

Mukesh Ambani owned Reliance Jio Infocomm has selected DragonWave Solutions as a packetmicrowave radio systems provider for its soon to be launched 4G/LTE network in the country.

Under the deal, DragonWave Solutions will provide microwave products and related services to Reliance Jio Infocomm, the Canada-based company said in a statement Thursday.

DragonWave will provide 5,000 turnkey Horizon Compact+ links in support of the Reliance Jio’s plan to roll out extensive, nationwide 4G/LTE networks.

The deployment will also include services to be delivered by DragonWave’s Indian joint venture, DragonWave HFCL.

“This is also DragonWave HFCL’s first major services win in India, showing our deployment capabilities have matured,” Ram Raghavan, chief executive of DragonWave HFCL, said in the statement.

The solution provider said that its Horizon Compact+ was extensively tested by Reliance Jio and found acceptable for use as transport system for high capacity backhaul to support their upcoming 4G network.

“We believe that the Horizon Compact+ radio brings considerable value in India where backhaul spectrum is both limited and expensive,” Peter Allen, DragonWave’s President and CEO, said.

Reliance Jio is preparing to launch its 4G voice and data services later this year. It has tied up a slew of infrastructure sharing deals in the recent past for a cheaper and speedier roll out of its services.

HFCL jumps 20% on buzz of pact
with Reliance Industries

Himachal Futuristic Communications Ltd (HFCL) hit the upper circuit filter of 20 percent at Rs 12.69 on reports that Reliance Industries ( RIL) plans to roll out its 4G network in partnership with the company.

“RIL plans to roll out its 4G network in partnership with HFCL, the group from which it acquired pan-India airwaves for high-speed internet and data services in May 2010,” an ET report said.

“According to people familiar with the development, Reliance-owned Infotel Broadband will focus on key aspects of the network and monitor the rollout, but will leave ground-level execution and management to HFCL, which has prior experience of similar deployment,” the report added.

In May 2010, Reliance Industries acquired a 95 percent stake in Infotel from HFCL Group and announced an investment of Rs 4,800 crore. Infotel is the only company with all-India airwaves for high-speed data services, which it won in an auction for Rs 12,848 crore.

RIL’s return to the telecom sector after a decade is being eagerly tracked and could shake up the telephony and high-speed data services markets.

It is the only operator in the country that will have an all-India 4G network, and industry experts expect it to replicate its entry strategy for mobile voice services in the early 2000s, when it offered subsidised handsets and cheap call rates that transformed the telecom market.

At 10:54 a.m., shares of Reliance Industries Ltd were trading 0.4 percent higher at Rs 691.35. The stock has hit a high of Rs 694.10 and a low of Rs 686 in trade so far.