Poor Numbers Have Telling Effect On SOTL

Mumbai, November 27: | Updated: Nov 28 2002, 05:30am hrs
Sterlite Opticals (SOTL) stock was subject to selling pressure in late afternoon trades on the back of its dismal performance in its second quarter results as announced on Wednesday.

On The Stock Exchange, Mumbai (BSE) the stock of the optical fibre-maker plunged a hefty 5.45 per cent to Rs 65.05, from its previous close at Rs 68.80. The stock of Sterlite Opticals notched volumes at 4,62,370 shares. Dealers said that SOTL was subject to market ire after the company posted a loss of Rs 27.08 crore for the second quarter. In contrast, in the last 17 sessions, between October 30 and November 26, the stock had risen 30.8 per cent to Rs 68.80 from Rs 52.60, dealers also added.

For the second quarter, ended September 30, 2002, SOTL registered a loss of Rs 27.08 crore compared to a net profit of Rs 12.31 crore in the corresponding period last year.

Analysts said that the results are poor following the continuing weakness in the telecommunications sector in both the global and domestic markets, leading to a fall in demand for fibre-optic components.

Analysts remain largely bearish on their outlook on the stock of SOTL as they said that financials of the company are not expected to improve till a revival takes place in the demand for optical fibre and optical fibre cables, which they said looks unlikely, given the depressed state of the US telecom sector.