Sterlite Technologies share price gains 7%, here’s why this telecom stock is on fire today

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Published: February 20, 2020 10:57 AM

Sterlite Technologies share price jumped more than 7 per cent on Thursday after the global data networks provider announced that it has successfully bagged orders word Rs 1,500 crore for 2020.

Sterlite Technologies is also set to gain as rural India steps foot into the next phase of digital infrastructure.

Sterlite Technologies share price jumped more than 7 per cent on Thursday after the global data networks provider announced that it has successfully bagged orders word Rs 1,500 crore for 2020. The orders, Sterlite Technologies said, ranged from continued business development in its core areas of optical connectivity solutions and network services to emerging areas such as software virtualization. The stock opened at Rs 119, gaining more than 7 per cent from its previous closing at Rs 111.

In a press release, Sterlite Technologies said that network creation capital expenditure in 2020 has been accelerated by major European, Middle East, Africa and Southeast Asian network creators. “As Sterlite Technologies has strategically invested in these markets it has disproportionately benefited by this acceleration, driving over 65% of Connectivity revenues from these international geographies,” the data networks solution provider said. 

Sterlite Technologies is also set to gain as rural India steps foot into the next phase of digital infrastructure. The company said, “In India, the rural broadband projects are moving to the next phase of digital infrastructure buildout in leading states like Telangana, Maharashtra and Madhya Pradesh. This is coming after a year of relatively slow growth in data network infrastructure buildout.” Sterlite Technologies has been building local expertise of deployment to bolster its technology-led design process in key states of Central India. More states are expected to accelerate their plans, especially given the enhanced budget outlay of Rs 6,000 crores for BharatNet.

Terming the surge in demand as a result of their significant investment in technology and talent, Anand Agarwal, Group CEO, Sterlite Technologies said, “We are pleased to see that our customers across Telcos, Cloud Companies, Citizen Network and Large Enterprises are realizing the value in holistic solutions – a trend that is reaffirming our value add as end-to-end data networks innovator.”

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