Sterlite Optical Technologies (SOTL) took a knock on the Bombay Stock Exchange (BSE) after the company's major client, the US-based fibre-optic equipment maker JDS Uniphase major client, warned of fall in its revenues. Sterlite Opitcal shares were down 4 per cent to close at Rs 196.55, sharply off its intra-day high of Rs 205 on the BSE.
JDS Uniphase warned on Monday that it expects sales to drop by around 10-15 per cent in the current quarter and next quarter ending 31 March 2002. JDS is a technology company that designs, develops, manufactures and distributes a range of products for the fibre optic communications market, deployed by systems manufacturers worldwide to develop optical networks.
The announcement affected Sterlite Optical, which is a leading domestic optical fibre cable maker. SOTL designs, develops and manufactures the same range of products as JDS Uniphase and also shares the same market.
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In the last 50 trading sessions, the stock, after touching its all-time low of Rs 97 on 21 September 2001, rose 111 per cent to Rs 204.75 on 10 December 2001. Even volumes rose witnessed a sharp surge on both the cash and derivatives segment. The an average daily volume on the cash segment of BSE rose to 15.64 lakh shares from 6 lakh shares in the same period.
For the second quarter ended 30 September 2001, the company posted a decline of 78.5 per cent, in its net profit to Rs 12.31 crore as compared to Rs 57.15 crore in the corresponding period last year. Net sales also dropped 56.4 per cent, to Rs 89.25 crore from Rs 204.55 crore in the second quarter of 2000.
SOTL has shareholders' approval to buy back shares at a price of up to Rs 250 a share. The company has set aside a maximum Rs 80 crore for the buyback.