Sterlite Tech rises 7% on strong Q1 results, record order book position

Shares of Sterlite Technologies have rallied 7% to Rs 324 per share on the BSE in early morning trade after the company reported nearly two-times increase in its net profit on year on year (YoY) basis in June quarter (Q1FY19) and an all-time high order book position of Rs 60.34 billion.

EBITDA (earnings before interest, taxes, depreciation and amortization) margin improved 700bps to 29% in Q1FY19 from 22% in Q1FY18.

The Company has also given strategic guidance for net income growth of $100 million in FY20, which is expected to be expedited with the recently announced acquisition.

Sterlite Technologies has been demonstrating sustainable growth historically, with a 47% CAGR growth in net income in the last three financial years.

On its next growth cycle, building infrastructure for 5G backhaul, fibre-to-the-home, data centres and Internet of Things related applications, the Company’s key financial performance metrics continued to be healthy, the company said in a press release.

At 09:45 am; the stock was trading 6.5% higher at Rs 321 on the BSE, as compared to 0.38% rise in the S&P BSE Sensex. A combined 2.11 million equity shares changed hands on the counter on the BSE and NSE so far.