Sterlite Technologies Take FTTH Initiative

Sterlite Technologies, one of the Vedanta Group company, is one of the leading manufacturers of optical fiber, fiber optic cable and power conductors, HV/EHC power cables. It provides solutions for telecom and power transmissions networks on a global scale. It has a presence in India, China and Brazil.
 
The company has ventured into providing ultrafast internet services (20-50 mbps) to about 20 major cities in India through its fiber-to the-home (FTTH) initiative. It is on the same line of Google’s fiber project initiative in USA. However, unlike Google, Sterlite Technologies will provide internet via mobile operators which will act as the point of interconnect. The company expects to offer its services to around one million users in major cities like Mumbai, Pune, and Bangalore etc. Along with Sterlite Technologies, telecom companies will also benefit from this initiative as it is through them that the company will provide this service.
 
The company currently has a strong order book of Rs 4400 crore; of which Rs 1232 crore i.e. 28% of the orders are export orders as of June’2014 quarter. Recently, Sterlite has secured a significant share of Network for Spectrum project which includes Sterlite’s intrusion proof solution for a secure communications network for defense use. Coming to the geographical presence of Sterlite, its sales account for nearly 40% of exports with Europe and Middle East being the major contributors contributing nearly 60% of its exports. Furthermore, it is developing several transmission infrastructure projects on a pan India basis spanning over 5000 circuit kms.
 
The net sales of the company stood at Rs 550.68 crore in June’2014 quarter as compared to Rs 744.48 crore in June’2013 quarter. The net profit of the company stood at Rs 9.49 crore in June’2014 quarter as against Rs 12.03 crore in June’2013 quarter.
 
The internet has become one of the necessities of life and a faster internet connection will differentiate companies from its peers. Investors can keep a watch on the stock.