Sterlite Tech rings on bagging Telangana project

Sterlite Technologies (STL) jumped 7.02% to Rs 126.45 after the company said it secured a multi-year deal worth about Rs 1800 crore to design, build and manage a rural broadband network across 3,000 gram panchayats in Telangana.

STL, a global data networks innovator, was recently awarded the mandate to create a high speed rural broadband network from Telangana Fiber Grid Corporation (T-Fiber). Supporting the vision to establish a 'Digital Telangana', T-Fiber and STL will work together for enabling affordable and high-speed broadband connectivity to 6 million rural citizens in the state of Telangana.

STL was awarded a work order for about Rs 1100 crore for Phase-1 of the project. The total project value is worth about Rs 1800 crore for which STL has received the letter of intent.

This turnkey project entails designing and building an end-to-end rural broadband network across 11 districts, 3000 gram panchayats of Telangana and managing the network for an additional seven years. The project has a significant Operations and Maintenance (O&M) revenue stream, close to 30% of the overall Project value.

The STL stock continues to trade above its 50 days simple moving average placed at 123.94 and below its 100 days simple moving average placed at 132.09. These levels will act as support and resistance in near term.

Last month, Sterlite Technologies signed a multi-year, multi-million dollar strategic digital transformation agreement with Telekom Albania, the first mobile communications company in Albania. STL and Cognity will deploy leading edge end-to-end open and modular software solutions from STL's next-generation BSS/OSS portfolio. This will help Telekom Albania to centralize, automate and digitize operations across its mobile telephony, wireless broadband, landlines, mobile IPTV, for consumer and enterprise customers.

STL offers end-to-end data network solutions. The company designs and deploys high-capacity converged fibre and wireless networks. STL's expertise ranges from optical fibre and cables, hyper-scale network design, and deployment and network software.

On a consolidated basis, STL's net profit rose 21.6% to Rs 159.56 crore on a 25.4% increase in net sales to Rs 1359.69 crore in Q2 September 2019 over Q2 September 2018.

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