Power transmission stock jumps 6% after reporting a 73% increase in global revenue in Q3

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Power transmission stock jumps 6% after reporting a 73% increase in global revenue in Q3
Credit: © Reuters.

The shares of Sterlite Technologies (NS: STTE ) gained 6.14% on Monday’s early trades to reach an intraday high of ₹ 185.75 apiece on the National Stocks Exchange (NSE), after reporting turnaround Q3 numbers for the latest quarter. They were trading at ₹ 182.60 apiece, (up 4.34%) at 11:28 AM.

The company’s revenue from operations surged 46.23% to ₹ 1,882 crores in Q3FY23 (October-December quarter), against ₹ 1287 crores posted in the corresponding quarter last year (Q3FY22). It posted a consolidated net profit of ₹ 46 crores in Q3FY23 against a net loss of ₹ 142 crores in Q3FY22.

It reported a 73% revenue growth in global markets on a year-till-date (YTD) basis, and the revenue from its optical business zoomed 1.8x to ₹ 1,486 crores to ₹ 837 crores.

The company’s board of directors has approved the proposal of raising funds up to ₹ 500 crores through the issue of fully paid-up/ partly paid-up equity shares of the face value of ₹2 each by way of a rights issue.

The detailed terms in relation to the issue, like the issue price, issue structure, rights entitlement ratio, record date, timing and terms of payment will be determined and disclosed in due course. Further, the promoter and promoter group of the Company have confirmed that they will subscribe to the full extent of their aggregate rights entitlement.

Sterlite Technologies was established in 2001 after a demerger of the telecom division of Sterlite Industries. The company is engaged in the business of manufacturing power transmission cables. Over the years, it has grown to become one of the largest manufacturers of optical fibre and optical fibre cables in India.

It has a market capitalization of ₹ 6,974 crores and is a small-cap company. It has a low return on equity of 2.44%, a dividend yield of 0.29%, and a debt-to-equity ratio of 2.01.

The company is constantly investing in fundamental capabilities and R&D to pack in more capacity and innovation into these optical network builds. It is driving towards scalable growth in the Optical business and sustainable revenue streams in the Global Services business, it said.

Sterlite Technologies’ order book stood at ₹ 12504 crores on the back of its capability to engineer unique solutions for service providers. It signed multi-million, multi-year contracts with top-tier service providers.

Written by Simran Bafna

The post Power transmission stock jumps 6% after reporting a 73% increase in global revenue in Q3 appeared first on Trade Brains.

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