Sterlite Technologies spurts after winning BSNL order

Sterlite Technologies hit an upper circuit limit of 5% at Rs 68.60 at 14:35 IST on BSE after the company said it bagged nearly Rs 2500 crore of contracts from BSNL to implement end-to-end rollout of optical fiber network for defense services.

The company made the announcement during trading hours today, 1 July 2014.

Meanwhile, the BSE Sensex was up 149.32 points, or 0.59%, to 25,563.10.

On BSE, so far 2.88 lakh shares were traded in the counter, compared with an average volume of 10.36 lakh shares in the past one quarter.

The stock hit a high of Rs 68.60 and a low of Rs 66.10 so far during the day. The stock hit a 52-week high of Rs 73.50 on 24 June 2014. The stock hit a 52-week low of Rs 15.75 on 6 August 2013.

The stock had outperformed the market over the past one month till 30 June 2014, rising 48.52% compared with 4.94% rise in the Sensex. The scrip had also outperformed the market in past one quarter, soaring 198.40% as against Sensex's 13.76% rise.

The small-cap company has an equity capital of Rs 78.76 crore. Face value per share is Rs 2.

Sterlite Technologies announced that it has secured an advance purchase order from Bharat Sanchar Nigam (BSNL) for end-to-end deployment including design, engineering, implementation and maintenance of a part of the network for spectrum (NFS) project - Optical Fiber Cable (OFC) Network in the state of Jammu & Kashmir of the NTP region.

This project in Jammu & Kashmir region including optical fiber cable supplies to other parts of the country is expected to add around Rs 1950 crore to Sterlite's order book. This order needs to be executed by 2016. Additionally, Sterlite is also contracted to maintain the Jammu & Kashmir network for an additional period of 7 years at a value of about Rs 500 crore, the company said in a statement.

The government of India decided to release 150 megahertz (Mhz) of spectrum held by the defense sector in the frequency range of 1700 Mhz to 2000 Mhz, owing to growing telecommunication needs and shortage of spectrum available for growth of cellular services. Sterlite Technologies has been awarded the project to build a new communication network for exclusive use by the armed forces in lieu of the spectrum. The order is for full rollout of OFC network to be owned and operated by the defense services under the project implementation core group (PICG), Ministry of Defense (MoD). It comprises a highly resilient exclusive OFC based nationwide optical backbone for defense sites and access networks at army sites. In this project, Sterlite is playing an important part in designing, planning and implementation of this countrywide secure, multi-protocol converged network. It is based on dedicated tri-services optical transport backbone. Sterlite's expertise lies in understanding the geographical profile, network design, product customisation and large scale project execution, the company said.

Net profit of Sterlite Technologies declined 31.65% to Rs 10.15 crore on 22.07% decline in net sales to Rs 623.76 crore in Q4 March 2014 over Q4 March 2013.

Sterlite Technologies develops and delivers products, solutions and infrastructure for telecom and power transmission networks globally.

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