India's STL Secures Rs 960 Crore Multi-Year Optical Fiber Cable Supply Contract on August 1

en.Wedoany.com Reported - Sterlite Technologies (STL) signed a multi-year optical fiber cable supply agreement with a domestic telecom operator on August 1, with a contract value of Rs 960 crore (Rs 9.6 billion). The company announced this in an exchange filing.

Under the agreement, STL will supply optical fiber cables as per customer specifications. The initial contract term is two years, with an option to extend for an additional two years upon mutual agreement. STL did not disclose the customer's name. The order is scheduled for execution in FY28 and FY29.

This order follows STL's announcement of its Q1 FY27 results. The company reported a net profit of Rs 197 crore for the quarter, compared to Rs 10 crore in the same period last year; revenue grew 87% year-on-year to a record Rs 1,910 crore. EBITDA climbed to an all-time high of Rs 397 crore, with margins expanding to 20.8% from 13.7% a year earlier.

As of the end of the June quarter, STL's order book stood at a record Rs 18,618 crore. During the quarter, the company also completed a Rs 1,500 crore qualified institutional placement (QIP), which it said enabled it to achieve net debt-free status and strengthened its balance sheet. Management also raised its FY27 EBITDA margin guidance from 20% to 23%, citing higher capacity utilization, growth in the data center business, and improved optical fiber connectivity demand.

Sterlite Technologies shares closed 5% higher at Rs 557.05 on the National Stock Exchange (NSE) on Friday, July 31.