What Makes Sterlite Power Transmission Ltd Grow | Business Model

Sterlite Power Transmission is a global power transmission infrastructure manufacturer with multiple projects run in India and Brazil. It also sponsors India’s first power sector investment trust called IndiGrid, listed on the BSE and NSE. Having an industry-leading company in the power transmission industry, Sterlite Power Transmission has a portfolio of a vast range of power conductors like OPGW and EHV Cables. 

In addition, this company also offers solutions for upgrading, strengthening, and paving the existing networks. The business model of Sterlite Power Transmission is considered one of the most profitable, and it generated over Rs 5,158 crore in the last few years. As a result, Sterlite Power Transmission Ltd unlisted shares remain in demand among retail investors. Let’s discuss this company’s business model in detail for future investment perspectives.

About Sterlite Power Transmission Ltd

Before jumping over to the business model, let’s briefly overview the company. Sterlite Power Transmission Ltd runs an integrated and diversified Sterlite power business across India and Brazil, and it offers technological-led solutions to infrastructure transmission projects and bids for tenders. 

Sterlite is also the biggest private player in India’s interstate segment, with over 26% of the market share. It is a public company and bids for government-based projects contributing to its significant revenue. Sterlite Power Transmission Ltd Pre-IPO shares are traded actively, whose performance indirectly depends on the company’s financials. The positive growth rate of the company throughout these years is also reflected in Sterlite Power Transmission Ltd unlisted share price, which also increased during fiscal year 2021-22.

Business Model of Sterlite Power Transmission Ltd

The company’s business model is divided into two major sections: bidding systems for tender and project maintenance services. Sterlite Power Transmission Ltd earned revenue through these two methods. 

Bidding For Projects

The primary business structure of Sterlite Power Transmission is getting government-based projects with the help of a bidding system. The company usually bids on power transmission projects via legal tender to supply electricity nationwide, and they get an annual and variable monthly charge for maintaining the electricity supply. 

Sterlite Power Transmission Ltd has more than 12 projects in India through the bidding system. The project success rate also indirectly affects the performance of Sterlite Power Transmission Ltd unlisted shares.

Maintenance of Transmission Lines

The other way by which Sterlite Power Transmission earns revenue is through its transmission line maintenance service. It is one of the significant parts of its business model that comes into play after installing power transmission lines. After this, it maintains the transmission lines and charges government and private electricity suppliers service fees. 

During an inspection, the government closely examines the transmission line for maintenance. The lower transmission line to a certain level also comes under the fine. However, Sterlite Power Transmission Ltd has an excellent transmission line availability of 99.84%, making its business model one of the most successful in the power transmission industry. As a result, Sterlite Power Transmission Ltd shares remain in demand among retail investors.

Sterlite Power Transmission Ltd Ongoing Projects In India

Sterlite Power Transmission Ltd has a global infrastructure business model that designs, develops, and operates power transmission assets in India. They also outsource the projects to contractors for installation purposes. Currently, Sterlite Power Transmission Ltd has multiple ongoing projects in India:

  • Khargone Transmission Limited
  • Lakadia Vadodara Transmission Project Limited
  • Udupi Kasargode Transmission Limited
  • Goa-Tanmar Transmission Project Limited
  • Vapi-II North-Lakhimpur Transmission Limited

These ongoing power transmission projects help the company to make a profitable business which reflects in Sterlite Power Transmission Ltd unlisted shares performance. Over the years, the company’s overall revenue, PAT, and EBITDA have remained positive. Moreover, there is a high chance that the Sterlite Power Transmission IPO might also launch soon.

Invest in Sterlite Power Transmission Pre-IPO Shares With Stockify

Now, you might have a good overview of the business model of Sterlite Power Transmission Ltd. As per the financial results of 9MFY23, company performance remained exceptional. During this, the company’s revenue increased by 37% compared to the last quarter of FY22. Apart from this, EBITDA also increased by 8%, which positively impacted Sterlite Power Transmission Ltd unlisted share price.

These financial metrics indicated that Sterlite Power Transmission Ltd is proliferating and profitable in every aspect. It can be beneficial for you to buy Sterlite Power Transmission Ltd unlisted shares, which are less risky than any other listed shares. 

With the help of Stockify, you can buy unlisted shares of Sterlite Power Transmission Ltd easily after analysing its current and past performance. Our experts conduct in-depth research to come up with updated Sterlite Power Transmission Ltd unlisted share price and other financial experts.

So without wasting any time, invest in a fast-growing company. To buy unlisted shares, connect with the best unlisted shares brokers in India now!

FAQs

1- Is Sterlite Power Transmission A Profitable Company?

Sterlite Power Transmission Ltd is a profitable company per the latest financial report in which its profit-after-tax was Rs 820 crore.

2- When Will Sterlite Power Transmission Ltd IPO launch?

There are no updates available for the Sterlite Power Transmission Ltd IPO. It is expected that the company may launch its IPO next year. For more info, connect with Stockify.

3- How Can I Check Sterlite Power Transmission Ltd Share Price?

You can check Sterlite Power Transmission Ltd unlisted share price on Stockify. Our experts update the Pre-IPO shares price based on recent market data.

4- Can I Buy Sterlite Power Transmission Ltd Unlisted Shares Online?

You can buy unlisted shares of Sterlite Power Transmission Ltd by using Stockify. Here, you will get access to the company’s financial report and expert assistance.

5- Is It Legal To Buy Pre-IPO Shares Of Companies In India?

Buying or selling unlisted shares is legal in India per the compliance of the capital market regulator SEBI.

Table of Contents

The business model of Sterlite Power Transmission Ltd is one of the most profitable. This is the biggest reason behind its rapid growth.

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Piyush Jhunjhunwala
Piyush Jhunjhunwala
CA, CPA, Ex. PepsiCo, Reckitt, Coty
CEO & Founder
Dubai, UAE.
Rahul Khatuwala
Rahul Khatuwala
Ex. Wipro & Finaco Founder
Co-Founder
Bangalore, India.