Sterlite Tech Q2 profit falls 63% to Rs 58.5 crore; says deal wins, digital uptake to fuel growth

Data network solutions provider Sterlite Technologies on Thursday posted over 63 per ent year-on-year decline in consolidated net profit for the second quarter ended September 2020 at Rs 58.5 crore, hurt by lower revenue and higher mix of service business.

The net profit in the corresponding period of previous year stood at Rs 159.56 crore, according to a regulatory filing.

However, the profit and revenue in September quarter were substantially higher sequentially, and the company exuded confidence that the sequential growth logged would continue for the next two quarters as well.

Revenue from operations slipped nearly 15 percent 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 percent 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.