Revenue from operations slipped nearly 15 per cent to Rs 1,159.5 crore in Q2FY21 from Rs 1,359.6 crore in the year-ago period.
However, the net profit was nine-fold higher than Rs 6 crore reported in first quarter of current fiscal. Revenue also rose over 32 per cent from June quarter.
The company said its manufacturing operations have exceeded pre-COVID levels and its order book is at an "all time high" of over Rs 10,705 crore with diversified wins.
"Digital network creators globally continue to invest aggressively in strengthening their current network, to increase reach and quality of their networks. Our strategic investments in building deep technology expertise, integrated digital network solutions, and global talent, positions us strongly to address this market demand," Sterlite Technologies Ltd (STL) Group CEO Anand Agarwal said in a statement.
Agarwal told PTI that the drop in profit on a year-on-year basis was primarily on account of overall decline in revenue and increasing proportion of service business, which runs on lower margins, but offers better returns on capital employed.
STL has initiated expansion of its optical fibre cable capacity to 33 million fibre km from 18 million fibre km as the company's strong customer engagement and solution offerings demonstrate positive long-term growth, the company statement said.
It said the capacity expansion is expected to be completed by June 2021.
The company, in an investor presentation, expressed confidence that it will continue to grow in the fiscal's third and fourth quarter on a sequential basis, and that the second half of FY21 will be better than the year-ago period.
Shares of STL on Thursday closed 4.12 per higher at Rs 158 apiece on the BSE.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.