Sterlite Tech Q2 profit doubles to Rs 29 cr

Power and telecom gear maker Sterlite Technologies' standalone net profit has more than doubled to Rs 29.39 crore for the quarter ended September 30 driven by it's telecom segment.
Its net profit stood at Rs 12.56 crore in the July- September period of the last fiscal, Sterlite Technologies said in a statement.
"We had an excellent quarter amidst a not so encouraging macro backdrop. We continue to be positive and optimistic on the developments within the company as well as in the markets we operate," Sterlite Technologies Vice Chairman Pravin Agarwal said.
Its total income increased to Rs 1,056.15 crore during the period under review from Rs 592.07 crore in the July-September 2014 quarter, a growth of 78.3 per cent.

"Our order book has been strengthening quarter-on-quarter. That pipeline is actually being built on broadband network being rolled out inside country as well as outside country. Telecom side traction, growth and visibility is very high. On power side, where we saw downturn last year,has corrected itself," said Sterlite Technologies CEO Anand Agarwal.
In May, the company had announced that it would demerge its power businesses into a separate undertaking and expects to close proceedings are progressing as per schedule in March, subject to regulatory approvals, it said.

Revenues from telecom products and solutions business for the quarter stood at Rs 478 crore, up 13 per cent from the previous quarter.

"Almost all telecom operators Reliance Jio, Airtel, Idea, Vodafone are building their 4G network and for 4G network it is a necessity that towers should be connected with fibre. There we are seeing good visibility as well as conversion in to orders. 4G will continue to be good growth driver in next 2-3 years," Agarwal said.
Power products and solutions business revenues for the quarter was at Rs 562 crore, a marginal increase of 5 per cent over the previous quarter and nearly double from the year-ago period, it said.
The telecom order book stands at Rs 2,009 crore, of which services and supply of products as part of the NFS order was at around Rs 1,900 crore and should be executed by the end of 2016, the company said.

Revenue from the power transmission business was Rs 109 crore for the second quarter of 2015-16.
The company said the mix between domestic and export revenues was at 26 per cent for the business with China and Europe as the main markets.
During the reported quarter, the company acquired Elitecore Technologies, a telecom software product firm, for Rs 180 crore that will be merged into Sterlite Technologies.
Sterlite Technologies stock closed at Rs 93.20, down 6.89 per cent, on the BSE.