Sterlite Tech share price soars over 10% as Q1 net profit doubles

Sterlite Tech share price spurted over 10 per cent after the optical fibre maker reported nearly two-fold jump in June quarter results. The stock after opening the day on a positive note jumped as much as 10.24 per cent to Rs 332 on BSE. At NSE, shares of the company surged 9.99 per cent to Rs 331.90.

In terms of equity volume, 7.23 lakh shares of the company were traded on BSE and over 46 lakh shares changed hands at NSE during the morning trade.

Sterlite Tech on Thursday reported nearly two-fold jump in net profit at Rs 121 crore for the June quarter due to strong demand for its products in the domestic market. The company had registered a net profit of around Rs 61 crore in the same period a year ago.

"Our core business of optical fibre and optical fibre cable continue to be major growth driver of our revenues and margins. Now we are operating optical fibre plant at 100 per cent capacity and optical fibre cable facility at 90-95 per cent," Sterlite Tech Chief Financial Officer Anupam Jindal said.

The total income of the company increased by 17.6 per cent to Rs 884.14 crore during the reported quarter from Rs 751.19 crore in the corresponding quarter of 2017-18.

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Domestic market contributed around 55 per cent to the the total revenue while overseas markets, led by Europe, accounted for the rest.

During the quarter, Sterlite recorded its highest order book of Rs 6,034 crore, which is around 1.7-times the company's annual revenue. For the year ended March 31, 2018, the company had reported a revenue of Rs 3,244 crore.