Sterlite Technologies secure order worth Rs 1,500 crore
On Wednesday, post market hours, Sterlite Technologies Limited (STL) informed the bourses that it has secured an order worth Rs 1,500 crore. The company further said that these orders ranged from continued business development in its core areas of optical connectivity solutions and network services to emerging areas such as software virtualisation.
In the early 2020, network creation capital expenditure has been accelerated by major European, Middle East, Africa and South East Asian network creators. As STL strategically invested in these markets, it has been disproportionately benefited by this acceleration, driving over 65 per cent of connectivity revenue from these international geographies. Along with it, in India, the rural broadband projects are moving to the next phase of digital infrastructure build out in leading states like Telangana, Maharashtra and Madhya Pradesh. This is coming after a year of relatively slow growth in data network infrastructure build out.
As on Q3FY20, the company’s order book stood strong at Rs 8,535 crore which translate into book-to-bill 1.5x on TTM revenue giving healthy revenue visibility for near-term.
Besides, the company’s promoters have been reducing its stake in the company and in December 2019, it stood at 53.65 per cent vs 53.83 per cent in June 2019.
With response to this robust order win, the stock of Sterlite Technologies opened gap up at Rs 119, as against the previous close of Rs 111.