Sterlite Tech Q1 PAT slumps 98% to Rs 2 cr

Sterlite Technologies' consolidated net profit slumped 98.41% to Rs 2.26 crore on 38.81% drop in revenue from operations to Rs 876.20 crore in Q1 June 2020 over Q1 June 2019.

Profit before tax (PBT) tumbled 96.8% to Rs 6.97 crore in Q1 June 2020 as against Rs 217.50 crore in Q1 June 2019. Total tax expense for the quarter slumped 94.38% at Rs 4.12 crore as against Rs 73.32 crore paid in Q1 June 2019. The result were announced during market hours today, 22 July 2020.

The revenues for the quarter were affected by lockdowns in various parts of the globe due to the Covid-19 pandemic. The company recorded a strong cumulative order book of over Rs 10,300 crore.

Over the next three year, STL plans to double the revenue to Rs 10,000 crore, reduce the net debt to equity by half to 0.5, and deliver a Return on Capital Employed (RoCE) above 20%. This comes with the backdrop of a credible performance-doubling of revenues in the last three years.

"Digital disruption is the new normal, and the world is embracing the changes that come with it. New ways of working, new business models and new opportunities are emerging. We are seeing the current telecom infrastructure evolving to a new digital networkarchitecture -virtual, converged, disaggregated, and close to the Edge," said Dr. Anand Agarwal, Group CEO, STL. He added, "As our customers are swiftly advancing towards creating these new digital networks, we are uniquely positioned with our 5G Ecosystem and digital network integration capabilities, to deliver these next-gen digital networks for our customers globally."

Sterlite Technologies is engaged in designing, building and managing smarter digital networks. Its digital networks focused business products, services and software includes optical communication products, network and system integration services and operations support systems (OSS)/business support system (BSS) software solutions.

Shares of Sterlite Technologies advanced 2.40% to Rs 138.50. The stock hovered in the range of Rs 131.40 to Rs 140 so far.

Powered by Capital Market - Live News