Shares of a leading global optical and digital solutions company surged are in focus on 12th June, after the company announced entering into an agreement with Bharat Sanchar Nigam Limited (BSNL) for a network project worth Rs. 2,631 crores.
With a market cap of Rs. 3,760 crores, the shares of Sterlite Technologies Limited closed in the green at Rs. 77.06 on BSE, up by around 2 percent, as against its previous closing price of Rs. 75.49.The stock has delivered negative returns of around 42 percent in one year, and has gained by over 15 percent in the last one month.
What’s the News:
According to the latest regulatory filings with the stock exchanges, Sterlite Technologies Limited, through its Global Services Business (the demerged business vertical), in collaboration with Dilip Buildcon Limited, has entered into an agreement with Bharat Sanchar Nigam Limited (BSNL).
This agreement covers the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network under the BharatNet initiative for the Jammu & Kashmir and Ladakh Telecom Circles (Package – 13).
The project is structured with a construction period of three years, followed by a 10-year maintenance contract. Maintenance payments will be made at 5.5% per annum of capex for the first 5 years and 6.5% per annum for the next five years.
The total value of the order is Rs. 2,631.14 crores, comprising Rs. 1,620.5 crores in capex, Rs. 972.3 crore in operational expenditure (opex) for the newly constructed network, and Rs. 38.33 crore in opex for the existing network.
It is important to note that, in accordance with the Scheme of Arrangement approved by the Hon’ble National Company Law Tribunal, Mumbai, via its order dated 14th February 2025, STL’s Global Services Business has been demerged into STL Networks Limited, effective 31st March 2025. As a result, the agreement with BSNL will be novated in favour of STL Networks Limited once the required formalities are completed.
Financials and More:
Sterlite Technologies reported a significant growth in revenue from operations, experiencing a year-on-year rise of nearly 25 percent, from Rs. 843 crores in Q4 FY24 to Rs. 1,052 crores in Q4 FY25.
Similarly, its net loss reduced during the same period from Rs. 82 crores to Rs. 40 crores, representing an improvement of nearly 51 percent YoY. Sterlite Technologies Limited, a global leader in end-to-end data network solutions, is engaged in the business of designing and deploying high-capacity converged fibre cables and wireless networks.
Written by Shivani Singh
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