Sterlite Technologies zooms 57% in three days after strong Q1 results

The stock hit a new high of Rs 248, zoomed 57% from Rs 158 on July 18, against 1% gain in Nifty 50.

Sterlite Technologies hit a new high of Rs 248, up 20% on the National Stock Exchange (NSE), extending its two-session long rally of over 30% after  the company said it reported its highest ever quarterly revenues driven by strong order book and export sales in June quarter (Q1FY18).

In the last three trading sessions, the stock of the telecom services provider zoomed 57% from Rs 158 on July 18, as compared to 1% rise in Nifty 50 index.

The trading volumes on the counter jumped more than four-fold with a combined 19.52 million equity shares exchanging hands on NSE and BSE till 10:56 am.

Sterlite Technologies’ net profit during the quarter under review grew by 61% to Rs 61 crore on the back of 23% rise in revenues of Rs 744 crore over the previous year quarter. The company reported the highest ever quarterly export sales of Rs 320 crore and highest order book of Rs 3,140 crore during reporting quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) margins expanded 160 basis points to 21.8% in Q1FY18 from 20.2% in Q1FY17.

Sterlite Technologies focuses on designing, building and managing smarter networks for four key customer segments – Global Service Providers, Smart Cities, Rural Broadband and Large Enterprises – partnering with them to succeed through its unique silicon-to-software capabilities.

The Company said it is now embarking on its next leg of capacity expansion to 50 million fkm, to be completed by June 2019. This will place Sterlite Technologies in the league of top three integrated fibre manufacturers in the world.