Sterlite Technologies extends rally on strong Q4 results

The stock rallied 11% to Rs 73, extending its previous day's 4% gain on the NSE.

Sterlite Technologies has rallied 11% to Rs 73, extending its previous day’s 4% gain on the NSE, after reporting nearly fourfold jump in its standalone net profit at Rs 39.13 crore for the fourth quarter ended March 31, 2015 (Q4).

The company had posted a net profit of Rs 10.15 crore in the same period a year ago.

The company's standalone revenues during the March quarter increased 52% to Rs 979 crore from Rs 646 crore. EBITDA margin expanded 200 basis points to 13% in March quarter as against 11% in the previous year's quarter.

The company said it had a strong order book of Rs 4,711 crore at the end of FY15, against Rs 2,521 crore in the previous year. 

Meanwhile, the board has approved the corporate restructuring plan.

The restructuring will lead to the creation of a listed pure-play platform for the telecom businesses and an unlisted power business. Shareholders will have the option to continue to be associated with all these businesses, or only specifically invest in businesses that best suit their respective investment philosophy, the company said.

The telecom product and solutions business had reported PBIDT (profit before interest, depreciation and tax) of Rs 112 crore in March quarter against Rs 55 crore in the year-ago quarter.

The stock opened at Rs 66.40 and touched a high of Rs 73.45 on the NSE. The trading volumes on the counter more than doubled, with a combined 7.22 million shares changing hands on the NSE and BSE till 0954 hours.