Sterlite Tech is betting big on technology boom driving India’s optical fibre market

NEW DELHI: For Sterlite Technologies, the last 12 months have been rocky at the bourses.

Even while recording a 60% top line growth and 68% jump in profits, the stock has lost nearly two-thirds of its value. This took down the company’s market capitalisation from Rs 13,249 crore as on September 26 last year to Rs 6,506 crore by September 26 this year.

Yet, even amid this market cap devaluation, Sterlite Tech’s net sales rose 60% — from Rs 3,177 crore in FY2018 to Rs 5,087 crore in FY2019. A part of the London-headquartered mining and metals conglomerate Vedanta Group, Sterlite Tech mainly makes optical fibre and cables.

Anand Agarwal, who has been CEO since 2003, feels the Sterlite scrip was hit by perception issues around the optical fibre industry, general worries around mid-cap companies and foreign institutional investors pulling out of India.