NEW DELHI: Optical fibre maker Sterlite Tech today reported nearly doubling of its net profit at around 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 told PTI.
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.
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.
Jindal said despite growth in sales volume of optical fibre and OFC, there has been no impact on prices of the product and it will continue to be at the same level with reasonable margins.
Sterlite expects to double its annual net profit by fiscal year 2020 to $ 100 million or Rs 670 crore compared to Rs 334 crore it posted for 2017-18.
"We are increasing our optical fibre production capacity to 50 million route kilometer (rkm) from 30 million rkm. I believe 10 million rkm capacity will be ready for use from January onward," Jindal said.
The company had announced acquisition of Italian optical fibre cable (OFC) maker Metallurgica Bresciana for $ 47 million or about Rs 376 crore.
"We expect to complete the transaction in this quarter, maybe by end of this month," Jindal said.
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