Sterlite Tech jumps 7% as it secures fresh orders worth Rs 1,500 crore

Shares of Sterlite Technologies (STL) jumped over 7 per cent on Thursday, a day after the company informed that it has added new orders of Rs 1,500 crore. These orders have ranged from continued business development in its core areas of optical connectivity solutions and network services to emerging areas such as software virtualisation, the company said in its press release.

At 09:32 am, the stock was trading nearly 5 per cent higher at Rs 116 apiece on the BSE. In comparison, the benchmark S&P BSE Sensex was trading 32 points or 0.08 per cent lower at 41,291.

STL further said that the company's network creation capital expenditure has been accelerated by major European, Middle East, Africa and South East Asian network creators and as STL has strategically invested in these markets, it has disproportionately benefited by this acceleration, driving over 65 per cent of connectivity revenues from these international geographies. 

Further, the rural broadband projects are moving to the next phase of digital infrastructure buildout in states such as Telangana, Maharashtra and Madhya Pradesh. "This is coming after a year of relatively slow growth in data network infrastructure buildout," the company said. CLICK TO READ PRESS RELEASE

“At STL, we have been focused on creating solutions for our customers that overcome their end-to-end problem statements – rather than just delivering some components. This has taken significant investment in technology and talent. We are pleased to see that our customers across Telcos, Cloud Companies, Citizen Network and Large Enterprises are realizing the value in holistic solutions – a trend that is reaffirming our value add as end-to-end data networks innovator," said Anand Agarwal, Group CEO, STL.

For the quarter ended December 31, 2019, STL had reported a 37.6 per cent YoY decline in its net profit at Rs 91 crore during. The company had registered a net profit of Rs 146 crore in October-December quarter a year ago. Its consolidated revenue stood at Rs 1,203 crore during December quarter as against Rs 1,335 crore in the corresponding quarter of 2018-19. 

In the past one year, shares of the company have dropped over 53 per cent as against around 13 per cent rise in the Nifty50 index.