BharatNet will lead to strong growth in fibe business, says Sterlite Tech; stock jumps

Sterlite Technologies that owns a 40% market share of optic fibre in India said this Budget will help them immensely.

Finance Minister Arun Jaitley said it will allocate Rs10,000 crore for expanding the BharatNet project in FY18. By 2017-18-end high speed broadband will reach more than 150,000 gram panchayats via Wifi hotspots.

“This is positive step for our sector since fibre will be needed for digital push, improve speed and connectivity and the focus on broadband connection will play a key role in our growth,” said Anupam Jindal, chief financial officer for Sterlite Technologies.

Also, as part of a recent initiative called ‘Digital Village’, the government will be deploying free Wi-Fi in 1050 rural villages in the country. Tower-mounted Wi-Fi hotspots at remote locations in the country will be installed which will allow villagers to use the service on their cell phones. The project would go on for next six months.

The CFO added that these digitisation efforts will ensure a supply for fibres is needed going ahead.

Sterlite Technologies had posted a 63 % jump in consolidated net profit at Rs 49 crore in the third quarter ended December 31, 2016.

Shares of the company traded at Rs 130 a piece , up by 4.12% on the BSE on Wednesday.