Sterlite Tech Q2 net profit jumps 40% to Rs 71 crore

Sterlite technology today posted a 40 per cent surge in consolidated net profit to Rs 71.23 crore in the second quarter ended September 30, driven by demand for optical fibre cable for high speed data networks.
The company had reported a profit of Rs 50.83 crore in the same period a year ago.
Sterlite Tech's revenue increased by 42 per cent to around Rs 779 crore in the reported quarter, as against Rs 558 crore in the corresponding period last fiscal.
"Optical fibres are proxy to data growth and it is a global product. There is high demand for high speed data networks across countries where we have our business. We have strong order books and our manufacturing plants are running at full capacity which is bringing continuous growth for us," Sterlite Tech CEO Anand Agarwal told PTI.

The company has current OFC (optical fibre cable) manufacturing capacity of 30 million fibre kilometer.
"Capacity expansion to 30 million fibre km was achieved as per plan. Further, capacity expansion to 50 million fibre km is on track, to be delivered by June 2019," Agarwal said.

He said Sterlite Tech experts increased by 70 per cent and orders book by about 74 per cent from around Rs 2,200 crore to Rs 3,832 crore during the period under review.
"China and Europe have been our strong and stable market. We see market in Latin America stabilising and growth momentum coming in. We have just added Middle-East and growth has been satisfactory," Agarwal said.

Overseas market contributed 51 per cent to Sterlite Tech total business and 49 per cent of revenue came from domestic market.
The total patents of the company during quarter reached 162.
The company also announced appointment of former managing director of Reliance Jio Sandip Das as non-executive and independent director to the board of Sterlite Tech.
Shares of Sterlite Tech closed at Rs 261.9 a unit, down by 2.42 per cent from previous close at BSE, today.