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Finolex Cables: JFTC, asset or liability?

Aug 20, 2002

With advent of the new economy, one expected jelly filled telecom cable (JFTC) manufacturers to be laggards in the telecom equipment industry. However, Finolex Cables Ltd. (FCL) has outperformed industry peers, especially optic fibre cable manufacturers. With optic fibre (OF) prices turning unremunerative Aksh Optifibre Ltd. and Sterlite Optical Technologies Ltd. have reported sharp slump in sales and complete erosion in profits.

Aksh Optifibre: Bottoms out

Aug 16, 2002

With meltdown in the telecom service sector, telecom equipment companies, globally, have experienced a challenging 12 months. Business environment has further deteriorated in quarter ended June '02. Similar to domestic industry leader, Sterlite Optical Technologies Ltd. (SOTL), the financials of Aksh Optifibre Ltd. have been battered.

Sterlite Opt: Doldrums intensify

Aug 13, 2002

After sliding sequentially for three consecutive quarters, Sterlite Optical Technologies Ltd. (SOTL) was able to reverse the decline over third and fourth quarters of FY02. However, the bleeding has started again and this time it seems more profuse. While the company had reversed topline performance, operating margins were severely eroded, as optic fibre prices collapsed leading to declining profits.

Finolex Cables: Going optic

May 28, 2002

With most players singed in the telecom equipment business, Finolex Cables Ltd. (FCL) has salvaged a reasonable performance. Having said that, with approval from the High Court, FCL has amalgamated the optic fibre cable subsidiary, Finolex technologies Ltd. with itself. Consequently, the results are not entirely comparable. Revenues were higher by 10% and profits down 22% for the first nine months of FY02.

Sterlite Opt: Telcos take toll

May 10, 2002

The story is the same for telecom equipment manufacturers namely optic fibre cables. Sterlite Industries Ltd. demerged the telecom equipment division into Sterlite Optical Technologies Ltd. (SOTL) with effect from FY01 (July '00). Subsequently, SOTL changed its year end to March from June. Therefore, FY01 numbers declared by the company were for 9 months. We have annualised the numbers for better comparison.

Aksh Optifibre: Signs of revival

May 8, 2002

For full year ended March '02, Aksh Optifibre has continued to report a healthy growth in topline. Over the past two financial years, the company has more than doubled net sales. Growth in turnover is likely to have been generated by ramp up in operating rates.

Finolex Cables: BSNL effect

Jan 29, 2002

For the quarter ended December '01, Finolex Cables Ltd. has declared significantly improved results as compared to the preceding quarter. Strong growth in the first and third quarter has salvaged sales for the first nine months of the current fiscal. The second quarter was a wash out for the company, as Bharat Sanchar Nigam Ltd. (BSNL) delayed their purchase of telecom cables.

Aksh Optifibre: Margins maraudered

Jan 25, 2002

On an annual basis, Aksh Optifibre Ltd. has posted a respectable topline growth, especially keeping in mind the difficult industry scenario for telecom companies. Having said that, the rapid downturn in the industry over the past eighteen months is reflecting on the bottomline.

Sterlite Opt: Pounded by slowdown

Nov 6, 2001

Sterlite Optical Technologies Ltd. (SOTL) is facing the heat of a slowdown in the telecom sector. The company has reported its third consecutive QoQ decline in turnover. In fact, for the quarter ended September '01, the has company posted a sharp YoY decline in top and bottomline.

Finolex Cables: BSNL blues

Oct 24, 2001

The operations of Finolex Cables Ltd. has received a jolt in the quarter ended September '01 leading to a significant de-growth in business.

Aksh Optifibre: Optic fibre prices take toll

Oct 19, 2001

Aksh Optifibre Ltd. has continued on the growth path. However, this seems largely due to stabilising of operating rates at higher levels. Also, the company operates from a small base. This has led to the year-on-year effect.

Sterlite Opt: Beaten beyond recognition

Oct 16, 2001

Sterlite Optical Technologies Ltd. (SOTL) scrip has taken a beating over the past twelve months. The stock is trading lower by 86.9% as compared to last year's level. The BSE Sensex, in the same period, is down by 20.8%. Valuations of the stock have fallen ten times from 24x to 2.4x earnings.

Sterlite Opt: Volumes spurts growth

Aug 1, 2001

Sterlite Optical Technologies Ltd. (SOTL) has changes its accounting year from June to March. Consequently, annual result for FY01 consists of nine months from July '00 to March '01. Along with the audited annual result the company has announced 1QFY02 results.

Aksh Optifibre: On the growth path

Jul 24, 2001

Aksh Optifibre continues to be on the growth path. The company has followed up on the strong fiscal performance with similar quarterly achievements. Bearing in mind, however, the company is in the initial stages of growth and is operating on a small base.

HFCL: Extraordinary items spoil show

Jul 4, 2001

Over the last few months Himachal Futuristic Communication Ltd. has been in the news, however, for all the wrong reasons. Nevertheless, the company has reported strong topline growth in the fiscal ended March '01. In FY00, the company had reported a turnover growth of 45%.

Finolex Cables: Topline trouble

May 15, 2001

Finolex Cables has registered a modest topline growth for FY01. The company recorded 13.5% turnover growth for 4QFY01. The company sales seem to have witnessed volatility in the fiscal ended March '01, as 2Q and 4Q were the only quarters with double-digit growths in FY01.

Sterlite Opt: Acceleration continues

Apr 24, 2001

The global telecom sector is in the midst of a turmoil with the telecom majors cutting back on their expansion plans to pay for 3-G licenses. Consequently, markets expected the orders of telecom equipment makers to take a hit. Despite the challenging external environment Sterlite Optical Technologies Ltd. (SOTL) has been able to report an impressive growth in topline.

Aksh Optifibre: Impressive performance

Apr 18, 2001

Aksh Optifibre has reported a significant growth in topline. However, the results are not strictly comparable, as the topline of FY00 includes the sales of the PVC unit now hived off. Also, sales of FY01 are inclusive of the merger with Telecords (India) Pvt Ltd, which amounted to Rs 41.5 m. Excluding the sales of the merged company the topline of Aksh Optifibre has increased by 38%.

Finolex Cables: Wait 'n' watch

Apr 6, 2001

The telecom equipment providers are facing a tough time in the international market. Consequently, this is reflected in the valuations accorded to the key players in the sector. Aksh, however, continues to trade at a premium to its peers.

Telecom Equipment: In the doldrums...

Apr 3, 2001

The happenings on the U.S. primary markets do not seem to be very different from those being witnessed at home. The IPO market, like in India, has dried up as a source for raising capital. In the quarter ended March 31, 2001 the U.S. IPO market declined by an estimated 80% YoY.

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