Sterlite Technologies’ Q2 net profit jumps 40% to Rs71 crore
New Delhi: Sterlite Technologies Ltd on Monday posted a 40% surge in consolidated net profit to Rs71.23 crore in the second quarter ended 30 September, driven by demand for optical fibre cable (OFC) for high speed data networks.
The company had reported a profit of Rs50.83 crore in the same period a year ago. Sterlite Tech’s revenue increased by 42% to around Rs779 crore in the reported quarter, as against Rs558 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 said.
The company has a current OFC manufacturing capacity of 30 million fibre kilometre. “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.
“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% to Sterlite Tech total business and 49% 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 Rs261.9 a unit, down by 2.42% from previous close at the BSE, on Monday.