Sterlite Technologies Limited has emerged as the lowest (L1) bidder for Bharat Sanchar Nigam Limited’s (BSNL) ambitious connectivity project in Jammu & Kashmir. Valued at ₹1,625 crore, this contract underlines STL’s capabilities in network infrastructure.
Price Action:
With a market capitalization of ₹6,291.96 crore, Sterlite Technologies Limited shares were trading at ₹129, up 5.65% from the previous day’s close of ₹122.10.
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What Happened:
Sterlite Technologies Limited has secured a significant order from BSNL to develop, upgrade, and maintain the middle mile network for Bharat Net in Jammu & Kashmir. The project is valued at approximately ₹1,625 crore, and STL’s bid was chosen as the lowest among competing bids.
The project is structured under the Design Build Operate and Maintain (DBOM) model and encompasses a three-year construction phase, followed by a ten-year maintenance period. BSNL has stipulated an annual maintenance charge of 5.5% of the project’s capital expenditure (capex) for the first five years, increasing to 6.5% per annum for the next five years.
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About the Company:
Sterlite Technologies Limited specialises in digital networks, offering various products, solutions, and services to drive digital transformation. The company’s offerings cover multiple areas, including optical communication, system integration, and digital transformation solutions. STL is engaged with leading telecommunication and network providers and governments across the globe, catering to digital needs in multiple regions.
Financials and Ratios:
Sterlite Technologies Ltd (STL) saw a 5.71% revenue decline year-over-year, reaching ₹1,419 crore in Q2 FY25; however, on a quarterly basis, the company experienced a strong recovery, with revenue rising 15.65% over the past three months. Net profit for Q2 FY25 declined significantly, showing a year-over-year decrease of 141.18% to a loss of ₹14 crore.
Despite this annual drop, STL achieved a quarterly net profit increase of 70.83%. The net profit margin followed a similar trend, declining 143.67% year-over-year to 0.99% but improving by 74.78% over the last quarter, signalling a potential turnaround in profitability.
