Rs 9,050 Crore Order Book: This LIC Backed Optical Fiber Power Transmission Company Secured Major Work Order Worth Rs 2,631.14 Crore From BSNL
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 (STL) has announced that it has received an Advance Work Order (AWO) from Bharat Sanchar Nigam Limited (BSNL) for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network of BharatNet in the Jammu & Kashmir and Ladakh telecom circles. The total contract value stands at Rs 2,631.14 crore (inclusive of GST), with capital expenditure (Capex) of Rs 1,620.50 crore. The operational expenditure (Opex) for the newly constructed network amounts to Rs 972.30 crore, while the Opex for the existing network is Rs 38.33 crore.
The contract execution period is three years for construction, followed by a ten-year maintenance contract. The maintenance charges are structured at 5.5 per cent of Capex per annum for the first five years and 6.5 per ccent per annum for the subsequent five years.
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This project is part of STL’s Global Services Business, which is set to be demerged into STL Networks Limited following approval from the National Company Law Tribunal (NCLT) on February 14, 2025. The demerger will become effective upon final implementation of the scheme. STL confirmed that the contract was awarded by a domestic entity and does not involve any related party transactions. The company has reassured stakeholders that it remains committed to delivering high-quality infrastructure for India's telecom and digital connectivity growth.
Sterlite Technologies Limited was established in July 2001 after the demerger of the telecom division of Sterlite Industries Ltd (SIL). In July 2006, STL acquired the transmission line business of SIL to foray into the power transmission cables business. STL has grown over the years to become the largest Optical Fiber and Optical Fiber Cables manufacturer in the country. The company also has sizeable presence in the overseas markets with an established presence in the global optical fiber market.
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 hold 1.17 per cent stake in this company.
The company’s current market capitalization 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.