Sterlite Inds meets with fag-end recovery

DALAL STREET SPIKES

Sterlite Industries came off from its day's high on profit booking at the fag end of the trading session. The stock in intra-day trades gained as much a 3.7 per cent to Rs 432.50, before closing at Rs 424.80, up 1.17 per cent from its previous close.

Market analysts said, Tuesday's gains at the counter is more of a technical bounce back after the stock was down 6.8 per cent on Monday, when the company announced its quarterly results. Tuesday's gains, however, were on very thin volumes of 8,232 shares at the BSE.

On a stand alone basis, Sterlite Industries reported a 17.5 per cent growth in FY04 net profit at Rs 197.14 crore (Rs 167.66 crore). Net sales rose 39 per cent in FY04 at Rs 3,069.81 crore from Rs 2,207.91 crore previously.

Sterlite is coming out with a rights issue to raise Rs 2,084 crore. The company revised the terms of its rights issue recently and it will now offer one equity share for every two existing shares, instead of the earlier proposal of three new shares for every 10 existing shares.