Shares of this Anil Agarwal-led telecom stock jumped approximately 3 percent in Thursday’s trading session after the company announced compliance of its Fiber Optic Cable products in the United States of America with the ‘Build America, Buy America’ (BABA) provisions. In the past month, the company’s stock rose nearly 20 percent for its holders.
With a market capitalization of Rs 6,594.42 crores, the stocks of Sterlite Technologies Limited (STL), a leading optical and digital solutions company, opened their trading hour on Thursday at Rs 134.95 and currently trades at Rs 135.25, gaining more than 3 percent compared to the previous closing level of Rs 131 apiece.
Such bullish share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), provided key business updates.
The company announced that its US-manufactured Fiber Optic Cable products are compliant with the ‘Build America, Buy America’ (BABA) provisions of the Infrastructure Investment and Jobs Act (IIJA). Furthermore, the company unveiled a series of products that will be added to its “In America, For America” portfolio of fiber optic cables.
The recent developments in the company reinforce its commitment to connecting rural America and supporting the local supply chain.
“With multiple BEAD projects on the horizon, the next five years will be landmark years for broadband and rural connectivity in the US, and we are very excited to support this program.”, commented Mr. Paul Atkinson, CEO – Optical Networking, STL.
During the recent financial quarters, the company’s basic business indicators, viz its operating revenues as well as after-tax profits, reported underperforming numbers.
The former reduced from Rs 1,494 crores during Q2FY24 to Rs 1,322 crores during Q3FY24, and the latter, keeping the timeframe the same, transitioned from profits of Rs 32 crores to losses of Rs 59 crores.
As per the latest presentations, the company reported growth in its ‘Optical’ business, consolidating its Global Services, and building the Digital business, expecting growth in the same over the next two to three years. Moreover, the company focuses on reducing its debt levels and improving business fundamentals.
Sterlite Technologies Limited is a company based in India engaged in connectivity and network solutions. The company’s product portfolio includes integrated optical fiber, structured data cables, copper telecom cables, fiber connectivity, and system integration solutions.
Written by Amit Madnani
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