Home BusinessSterlite Tech wins BSNL optic fibre contract
Power and telecom solutions vendor Sterlite Technologies Limited has won networking contracts worth Rs 54 crore from Bharat Sanchar Nigam Ltd (BSNL) to be executed in the current fiscal.
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A key component of the contract will be to lay 17,000 km of optical fibre cable (OFC) across India as part of BSNL’s network expansion plans as well as to replace existing copper cables.
“We have entered into a 24-fiber contract with BSNL,” said a company spokesman. In November, the company won new contracts worth Rs 600 crore for its telecom and power products businesses in India and Africa. Of the total contract value, contracts worth Rs 400 crore have been bagged by the power business, and the balance by the telecom solutions business. The spokesman declined to further identify clients or provide details on specific contracts in Africa.
“We will execute about 30 per cent of the cumulative contract value of Rs 600 crore in fiscal 2010 and the remainder in the first half of fiscal 2011. As for the power contracts, much of it will be executed over fiscal 2011,” the spokesman said.
According to reports, the company has said that 30-35 per cent of the cumulative contract value will add towards its sales for the current year while the balance will move to the next year’s order book.
The company’s order book as on November 30, 2009, was approximately Rs 2,050 crore. Its current optical fibre facility is 6 million km, which is set to be expanded to 12 million km in the current fiscal. “This will be further increased to 20 million km by the end of fiscal 2012, which will position us among the top three manufacturers globally,” the spokesman said.
Pune-based Sterlite Technologies is a key manufacturer of optical fibre and power conductors, and provides transmission solutions for the telecom and power industries globally. The company manufactures uncabled optical fibre at its facility in Aurangabad and power conductors in Hardwar. A third plant in Silvassa rolls out complete OFCs and power conductor products. The company has a power conductor capacity of 160,000 tonnes which is set to be fully operational by the end of the current fiscal.
Sterlite Technologies posted 799.2 per cent increase in net profit in the second quarter ending September 30 to Rs 54.67 crore from Rs 6.08 crore a year earlier. It witnessed a 30 per cent fall in net sales to Rs 465.83 crore in the second quarter from Rs 665.56 crore in the corresponding quarter of 2008.
The power business accounted for about 60 per cent of the company’s revenues in the fiscal 2009 ending March 31, with telecom contributing the rest. Sales during the last fiscal stood at Rs 2,289.23 crore.