Sterlite Technologies jumped 6.56% to Rs 23.55 at 13:05 IST on BSE after the company said it has entered into a 50:50 joint venture agreement with Conduspar Condutores Eletricos Limitada to manufacture optical fiber cable in Brazil.
The announcement was made during trading hours today, 10 July 2013.
Meanwhile, the S&P BSE Sensex was almost unchanged at 19,440.10.
On BSE, 2.65 lakh shares were traded in the counter as against average daily volume of 1.38 lakh shares in the past one quarter.
The stock hit a high of Rs 23.75 and a low of Rs 22 so far during the day. The stock hit a 52-week high of Rs 37.70 on 7 January 2013. The stock had hit a 52-week low of Rs 18.25 on 25 June 2013.
The stock had outperformed the market over the past one month till 9 July 2013, gaining 2.31% compared with the Sensex's 0.05% rise. The scrip had, however, underperformed the market in past one quarter, declining 5.96% as against Sensex's 6.66% rise.
The small-cap company has equity capital of Rs 78.70 crore. Face value per share is Rs 2.
Sterlite Technologies said it has entered into a joint venture (JV) agreement with Conduspar Condutores Eletricos Limitada (Conduspar) to manufacture optical fiber cable in Brazil. Conduspar is one of the largest companies in Brazil specialized in providing copper and aluminium cables for low and medium voltage applications in Latin America. The 50:50 JV will be a greenfield facility in Curitiba within the state of Parana (Brazil), and produce optical fiber cables for the Latin American markets. This venture would be a key milestone toward's Sterlite's global expansion strategy of its telecommunications business. The JV is expected to start commercial production by the first quarter of 2015 fiscal year, the company said.
Mr. Pravin Agarwal, Whole-time Director, Sterlite Technologies said, "Latin America is an important market for us from a growth perspective and we are pleased to have this joint venture with a strong and reputed partner like Conduspar. Both the companies share a common vision and bring together complementary strengths for this venture".
Sterlite Technologies' net profit declined 9.9% to Rs 14.85 crore on 0.4% growth in net sales to Rs 800.46 crore in Q4 March 2013 over Q4 March 2012.
Sterlite Technologies is a leading global provider of transmission solutions for the power and telecom industries. The company's product portfolio includes power conductors, optical power ground wire, EHV/HV power cables, optical fibers, telecommunication cables and a comprehensive telecom systems/solutions.
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