Sterlite Industries Limited has posted a 68% (YoY) growth in net profits and a 57% (YoY) growth in sales for the first quarter ended 30th September 1999.
Sterlite Industries (FY99 Sales Rs 11.1 bn) is into the manufacture of copper (67% of turnover) and the telecommunication cables. The company manufactures jelly filled cables (22% of turnover), optical fiber telecom cables (3%), optical fiber (2%) and aluminium (6%).
Profit before Tax
Profit after Tax
Net profit margin
The company has stated that the increase in volumes of continuous cast copper rods, jelly filled telecom cables (JFTCs), optic fibre cables (OFTCs) and copper have contributed in a major way to topline growth. The company has aggressively expanded capacity of OFTCs by 300% and JFTCs by 115%. It further plans to hike its copper capacity by 70% to 1.78 m tonnes per annum.
Sterlite's major source of revenue is derived from tender sales to the Department of Telecommunications (DoT). The market is competitive and margins thin. Moreover, the DoT's financial position is not one to envy and often payments are delayed much beyond the set time frame. The profitability and cash flows of companies in this sector continue to depend on orders and payments from the DoT. However, with the entry of private sector telecom companies, the market has expanded albeit marginally.
The stock has been rated as a 'BUY' mainly on account of the improving demand scenario emerging after large orders for telecom cables were bagged by the company. The improvement in the international prices of copper has also supported the rating.
More Views on News
Sorry! There are no related views on news for this company/sector.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407