This Smallcap data centre company, which offers global optical and digital solutions company and provides advanced offerings to build 5G, FTTx, Rural, Enterprise, and Data Centre networks in focus after receiving the order for the Bharat Net project in J&K worth Rs. 2,600 crore
Price Movement
In Wednesday’s trading session, Sterlite Technologies Limited stock was up by 1.8 percent in the day’s trade after receiving the order for the Bharat Net project in J&K worth Rs. 2,600 crore. The stock has delivered a negative return of around 15 percent in the past year underperforming the Nifty Index in the same period. The stock reiterated from the day’s high of Rs. 121.20 and was trading at Rs. 120.55 which is 1.35 percent from the previous closing price of Rs. 118.95 per share.
What happened
Sterlite Technologies received an order for the Bharat Net III project worth Rs. 2,600 crore with a consortium with Dilip Buildcon in Jammu and Kashmir. The project value consists of Rs. 1,625 crore for capital expenditure and Rs. 975 crore for Operations and Maintenance.
STL when compared to its competitors is its automation-driven fiber deployment strategy. From leveraging technologies such as GIS mapping, drone surveys, and AI-based network design, STL can achieve approximately 26 percent faster fiber deployment compared to traditional methods, resulting in nearly four times fewer fiber cuts.
Dilip Buildcon received an order worth Rs. 1,625.36 crores for the Development, Creation, Upgradation and Operation & Maintenance of the Middle mile and last mile network of Bharat Net on Design Build Operate and maintenance model in J&K. The time period of the contract is 3 years for construction and 10 years for maintenance contract. The DBL project execution contribution was 70.23 percent.
Management Commentary
Praveen Cherian, CEO of Sterlite Technologies said “We’re truly proud to be part of a project that’s not just about laying fibre but about transforming lives. It’s in our DNA to support nation-building initiatives that accelerate the country’s progress. We are bringing technology-driven solutions to fibre deployment and our Fibre Automation Solution enables a 3X faster deployment by infusing automation in the deployment process. That’s what we’re bringing to BharatNet in Jammu & Kashmir.
Financial Performance
Their Q2FY25 results show revenue from operations of Rs. 1,413 crore which decreased by 5.42 percent year on year, from Rs. 1,494 crore in Q2FY24 and a 16 percent increase from Rs. 1,218 crore in Q1FY25. The company had a net loss of Rs. 14 crore in Q2FY25, compared to a net profit of Rs. 32 crore in Q2FY24. However, on a quarter-on-quarter basis, the losses have declined from a net loss of Rs. 48 crore.
The debt-to-equity ratio was 1.75 times declined from 1.81 times in FY23. The RoE in FY24 stood at -3.94 percent declining from 6.32 percent a year ago. However, the RoCE stood at 4.77 percent which has declined from 10.96 percent in FY23.
Also read….
Revenue Segment
According to the company’s quarterly September 2024 report, they considered revenue from the optical networking business which contributed around 70.97 percent, the Global service business – 24.60 percent, and the remaining 4.42 percent from the Digital and technology segment as of Q2FY25.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 44.17 percent stake in Sterlite Technologies, Foreign Institutional Investors (FII) holding around 8.36 percent, Domestic Institutional investors (DII) standing at 10.69 percent, and public holdings standing at 36.79 percent.
About the company
Sterlite Technologies Limited is a global provider of optical and digital solutions and specializes in end-to-end data network infrastructure. The company designs and manufactures high-capacity fiber cables, optical connectivity solutions, and software-defined networks for the telecom and power sectors.
STL partners with telecom operators, cloud providers, and enterprises to improve connectivity through technologies like 5G and Fiber-to-the-Home (FTTH). With operations in India, China, and Brazil, STL aims to facilitate digital transformation globally. The company’s order book as of Q2FY25 stood at Rs. 8,630 crore out of which 60 percent is from telcos, 27 percent from citizen networks, and the remaining 13 percent from enterprises.
Written by Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
