scorecardresearchSterlite Technologies shares surge 6% after strong Q3 performance

Sterlite Technologies shares surge 6% after strong Q3 performance

Updated: 30 Jan 2023, 01:07 PM IST
TL;DR.

Sterlite Technologies reported a net profit of Rs. 50 crore in Q3 FY23, up from the losses of 138 crore in the same period last year. The stock has grown 25% in the last 6 months and is trading 42% above its 52-week low.

Sterlite Technologies Limited is an India-based company that is engaged in the business of connectivity and network solutions.

Sterlite Technologies Limited is an India-based company that is engaged in the business of connectivity and network solutions.

Shares of Sterlite Technologies jumped 6.1 percent on Monday, January 30, after the company reported a net profit of 50 crore in Q3 FY23, a turnaround compared to the losses of 138 crore in the same period the previous year. Sequentially, the net profit was up 13.6 percent from 44 crore in the September 2022 quarter.

“We demonstrated a sharp focus on growth areas, operational efficiencies and strategic capital allocation, resulting in strong financial performance,” the company said in a statement.

During Monday’s trade, the stock opened at a price of Rs. 174 per share, negative against the previous close of Rs. 175 per share. However, during the early trading session, it surged to touch an intraday high of Rs. 185.75. It was trading at 182.60, up by 4.34 percent, at 11:10 a.m. on the NSE.

The stock touched a 52-week high of Rs. 242.80 on April 22, 2022 and a 52-week low of Rs. 128.60 on July 26, 2022, indicating that at the current level, the stock is trading 42 percent above its 52-week low and 25 percent below its 52-week high.

The stock has grown over 25 percent in the last six months. However, in the past one year, it has declined by nearly 10 percent. Furthermore, the stock has gained only 24 percent in the last five years.

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Stock price chart of Sterlite Technologies

On Friday, the company informed that the order book at 12,054 crore was "robust", adding that on the back of its capability to engineer unique solutions for service providers, the company signed multi-million, multi-year contracts with top-tier service providers.

"I am excited about the market momentum and the pace of customer wins in our key markets. As we look ahead, I see technology innovation and R&D playing a pivotal role in our journey to become one of the top optical players in the world," stated Ankit Agarwal, MD of the company.

“A sharp focus on cash and profitability, and calibrated exits from sub-scale businesses have poised the company for long-term growth,” he added.

In other news, the investment commitment of global customers for optical fiber remains strong despite macroeconomic headwinds and telcos and hyperscalers will continue to spend to gain a market edge, the company stated.

The company is also positive on India's market outlook. "Be it 5G and Fibre-to-Home plans, as also Government talking of next phase of Bharat Net project, which will mobilise huge investment into fiber networks, we feel STL is well placed to capture the good position in the market growth," added Agarwal.

The company will continue to prioritise growth areas, optimise our capital structure and execute with discipline during Q4 and beyond.

Sterlite Technologies Limited is an India-based company that is engaged in the business of connectivity and network solutions. The company designs and deploys high-capacity converged fiber cables and wireless networks.

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First Published: 30 Jan 2023, 01:07 PM IST