One of the Goldman Sachs stocks specializing in end-to-end data network solutions has jumped by 5.73 percent after receiving an order from Bharat Sanchar Nigam Limited (BSNL) for the development of the middle mile network worth Rs. 1,625.36 crore
Stock movement
In Friday’s trading session, Sterlite Technologies Limited’s share has gained by 5.73 percent from the previous close of Rs. 122.10. The stock opened at Rs. 123.80 and is currently trading at Rs. 129.10 with a high of Rs. 130.75 and a low of Rs. 121.95. The market capitalization now stands at approximately Rs. 6,287.09 crore
What Happened
Sterlite Technologies Limited has secured an L1 bidder from Bharat Sanchar Nigam Limited (BSNL) for the development (creation, upgradation, and operation & maintenance) of the middle mile network of the Bharat Net on Design, Build, Operate, and Maintain (DBOM) model package 13 (Jammu & Kashmir).
The contract was valued at Rs. 1,625.36 crore, including three years of construction and ten years of maintenance. The maintenance fees start at 5.5% annually for five years and increase to 6.5% for the remaining period.
Financials and ratios
Sterlite Technologies Limited’s revenue has decreased from Rs. 1,494 crore in Q2 FY24 to Rs. 1,413 crore in Q2 FY25, which has down by 5.42 percent YOY. Sterlite Technologies Limited has turned its net profit into net loss, which is from Rs. 32 crore in Q2 FY25 to Rs. -14 crore in Q2 FY25.
Sterlite Technologies Limited’s revenue has grown at a CAGR of 4.32 percent over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 4.80 percent and -3.52 percent, respectively. The debt-to-equity ratio of the company is to be 0.95. Sterlite Technologies Limited’s EPS is to be Rs. -4.75.
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Shareholding Pattern
In September 2024, Sterlite Technologies Limited had a majority stake held by the promoters at 44.17 percent, foreign institutional investors at 8.36 percent, domestic institutional investors at 10.69 percent, and the public at 36.79 percent.
Goldman Sachs Funds has held a stake of 2.13 percent in Sterlite Technologies Limited, which has increased from 2.08 as compared to the previous June quarter of 2024.
Products and Segments
Sterlite Technologies Limited operates through three main segments, which include optical networking, global services, and digital solutions.
The Optical Networking segment designs and manufactures optical fibers and cables, while the Global Services segment handles fiber rollout and network deployment. The Digital Solutions segment aids in the digital transformation of telecommunications and enterprises.
Company Overview
Sterlite Technologies Limited (STL) is a prominent Indian company specializing in end-to-end data network solutions. It focuses on developing advanced technologies for 5G, rural connectivity, FTTx, enterprise, and data center networks. Sterlite Technologies Limited partners with global telecom operators and enterprises to deliver cutting-edge solutions that enhance connectivity worldwide.
Written By – Nikhil Naik
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