INVESTMENT PICK

• HOLDING PERIOD – SIX MONTHS PLUS

• STERLITE TECHNOLOGIES

• Present Price – Rs.243.25

• Projected Price – Rs.400 plus

Sterlite Technologies Limited is a leading global provider of transmission solutions for the telecom and power industries. It is India's only fully integrated optical fiber producer and among the Top 5 global manufacturers of power conductors. Sterlite sells its telecom and power products in over 70 countries and currently international sales account for about 30% of the company’s net revenues. Sterlite’s current optical fiber facility of 6 Million-Km is already under expansion to 12 Million- Km, which would get established in the current fiscal. Sterlite has decided to further enhance this capacity to 20 Million-km, which would position Sterlite amongst the Top 3 manufacturers globally. The capacity of 20 Million-Km would be functional by 2011. Projects underway to increase fiber optic cable capacity to 6 million-km and enhance power conductor capacity to 160,000 Metric Tonnes, are well on the track.

• First Quarter Highlights :

• Net Revenues of Rs. 436.18 Crores.

• Operating Profit (EBITDA) of Rs. 80.26 Crores up 93% year over year, with an improved margin of 18%.

• Net Profits (PAT) of Rs. 45.48 Crores.

• Power Transmission Business product sales of Rs. 296.04 Crores with an improved EBITDA margin of 15%.

• Telecom Products & Solutions Business sales of Rs. 140.14 Crores with an improved EBITDA margin of 26%.

• Business Highlights

• At the start of Q2FY10, the Company has a strong order book of about Rs. 1,600 Crores for its power and telecom products.

• Strong cash flow during the quarter.

• International sales reached Rs. 156 Crores in Q1FY09. Receipt of repeat orders from current customers and the addition of new eminent global customers Sterlite’s global footprint extends to Europe, Africa, Middle East & China.

• Sterlite received contract from BSNL of Rs. 372 crores for enabling a Fiber-to-the-Home (FTTH) Network based on Gigabit Passive Optical Network (GPON) technology.

BUYING IS ADVISED FOR BOTH MEDIUM AND LONG TERM INVESTMENT.