Rs 9,050 Crore Order Book: This LIC Backed Power Transmission Company Successfully Completed the Demerger of Its Global Services Business
Promoters hold 44.17 per cent, Foreign Institutional Investors (FIIs) hold 8.71 per cent, and Domestic Institutional Investors (DIIs) hold 9.42 per cent. Life Insurance Corporation of India hold 1.17 per cent stake in this company.
Sterlite Technologies Limited has successfully completed the demerger of its Global Services Business, transitioning it to a new entity named STL Networks, operating under the brand 'Invenia'. This strategic move aims to create two specialised entities, each with a sharper focus on their respective markets. STL Networks will continue to deliver large-scale IT infrastructure solutions, enhancing digital transformation efforts in India and the UK. The demerger aligns with Sterlite Technologies' long-term strategy to enhance operational efficiency and profitability, offering a compelling investment opportunity. The new structure is expected to drive growth and operational efficiency for both entities.
Ankit Agarwal, Managing Director of STL, stated, 'The completion of this demerger marks a pivotal moment in our strategic roadmap. This transition empowers STL and STL Networks to operate with greater focus, agility, and independence, creating exceptional value for all stakeholders.' With a strong presence in over 100 countries, STL remains committed to pioneering optical solutions, while STL Networks will focus on redefining global services. The demerger also includes the transfer of the Rs 2,600 crore Bharatnet project in Jammu and Kashmir to STL Networks, further strengthening its portfolio in the digital infrastructure space.
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Sterlite Technologies Limited, established in 2001, is a leading manufacturer of Optical Fiber and Optical Fiber Cables in India, with a significant global presence. The company operates through three main business segments: Optical Networking, Global Service Business, and Digital and Technology Solutions. The Optical Networking segment, which constitutes the majority of its revenue, focuses on designing and manufacturing optical fiber and cables. The Global Service Business, recently demerged, specialises in fiber rollout and network deployment. The company has a robust geographical footprint, with operations in over 75 countries, including significant markets in the Americas, EMEA, and India.
The company has invested in expanding its manufacturing capacity, including a new facility in the USA, and aims to be among the top three global optical fiber producers. With a focus on innovation, Sterlite Technologies holds 686 patents and operates three innovation centres. The company is also committed to sustainability, targeting net-zero debt by 2030.
As of March 28, 2025, the stock price of Sterlite Technologies Limited is Rs 80.96. The 52-Week High is Rs 148.6, and the 52-Week Low is Rs 78.29. The current price is trading near its 52-week low. Sterlite Technologies Limited has a market capitalisation of Rs 3,950 crore. The stock has delivered a 1-year return of -26.93 per cent and a 3-year return of -64.34 per cent. The major public shareholder is Chartered Finance & Leasing Limited, holding 1.05 per cent of the shares.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 1,261 crore, reflecting a YoY decline of 4.61 per cent compared to Rs 1,322 crore in December 2023. The operating profit stood at Rs 128 crore, marking a 42.22 per cent increase from Rs 90 crore in the same quarter last year. The profit after tax (PAT) improved by 57.89 per cent, reducing losses to Rs 24 crore from Rs 57 crore in December 2023.
In FY24, the company posted a revenue of Rs 5,478 crore, registering a decline of 20.90 per cent compared to Rs 6,925 crore in FY23. The net profit for the year stood at a loss of Rs 51 crore, compared to a profit of Rs 141 crore in the previous financial year, reflecting a decline of 136.17 per cent.
As of December 2024, the shareholding pattern stands as follows: Promoters hold 44.17 per cent, Foreign Institutional Investors (FIIs) hold 8.71 per cent, Domestic Institutional Investors (DIIs) hold 9.42 per cent, and the Public holds 37.70 per cent. There is no significant change in shareholding compared to the previous quarter. Life Insurance Corporation of India holds a 1.17 per cent stake in this company.
The company’s current market capitalisation stands at Rs 4,031.20 crore, with a current stock price of Rs 82.62.
Disclaimer: The article is for informational purposes only and not investment advice.