Sterlite Technologies extends gain on strong Q2 results

The stock moved higher by 6% to Rs 346, extending its past two days 2% gain in an otherwise weak market.

Shares of Sterlite Technologies have moved higher by 6% to Rs 346 per share, extending their 2% gain in the past two days in an otherwise weak market, after the company reported a strong 84% growth in net profit at Rs 1,310 million in September quarter (Q2FY19). It had a profit of Rs 710 million in the previous year quarter.

Revenues during the quarter review grew 39% at Rs 10.84 billion against Rs 7.79 billion in the corresponding quarter of last fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved to 25.7% from 23% in the previous year quarter.

The company said the future outlook for Sterlite Technologies remains very positive with the current open order book at around Rs 94.55 billion, based on a good mix of international and domestic long-term contracts.

The business continues to generate strong operational cash flow. The increase in debt is on account of organic & inorganic investments done for future growth and the benefits of these investments will start getting visible from FY20 onwards, it added.

At 12:48 PM; the stock was trading at Rs 344, up 5.5% on the BSE, as compared to 0.19% decline in the S&P BSE Sensex. A combined 1.32 million equity shares changed hands on the counter on the BSE and NSE so far.