-Quarter Revenue at Rs 1,335Cr(+60% YoY); Net Income at Rs 146Cr(+62% YoY)
-OrderBook crosses Rs 10,000 Cr as of Q3FY’19
-Ongoing network solutions capability build, opening addressable market of $75Bn
-Capacity expansion of 50mnfibrekm and 33 mn km fibre cableon track
Sterlite Tech [BSE: 532374, NSE: STRTECH], aglobal data network solutions company, postedfinancial resultsfor the third quarter endedDecember 31, 2018.With hyper growth in network creation for 5G, FTTx, citizen networks and data centres, Sterlite Tech continued solid performance, reporting a positive quarter with the highest-ever order book, crossing Rs 10,000 Cr.
Data has been growing exponentially,with over 10X scale expected in global IP traffic from 2012 to 2022,driving a hyper build cycle of networks globally by traditional and new players. While globally telcos are embracing digital for enhanced customer experience, large internet companies are building more and more data centres.At the same time, governments are investing in urban and rural networks, and Indian Defence is building world-class integrated data communications networks.This increasing customer relevance and geographic spread, along with the Company’s strategy of evolving to a data network solutions provider,has openedan addressable market of $75 billion by FY’23. This sets the trend for continued growth momentum for FY’20 and beyond.
To serve this growing market, Sterlite Tech has leveraged its unique silicon-to-software capability, relentless technology innovation and deep customer engagement to provide end-to-end solutions.Some key highlights for the Company over this quarter are:
- End-to-end solutions: The Company is developing network solutions for varied customerapplications, and has recently launched FTTx Mantra, aprogrammable network solution that converges deep fiberisation, swift roll out and virtualisation.
- Open, programmable networks: The Company has developed capability in programmable networks and intelligence, and has also partnered with RedHat to develop open and agile solutions that help accelerate telcos’ digital reinvention.
- Innovation:Innovation is at the core of everything Sterlite Tech does. Its ongoing innovation in optical communications and networking technologies has resulted in 234 patents, including innovation in strategic areas of sensory fibre cable and software-defined networks.The Company recently established a Speciality Products Experience Lab (SPEL) in India to focus on the physical layer of connectivity for small cells, data centres and IoT applications.
- Deep customer engagement:Sterlite Tech continued to drive its global presence with deeper inroads in existing geographies across Europe with some marquee wins with Tier-1 telcos. With deeper customer engagements, the Company is working with global telcos, cloud companies and citizen networks to transform their networks for 5G, small cells, IoT, rural broadband and FTTx.
- Strengthened manufacturing core:The Company continues to maintain an extremely strong manufacturingcore, riding on deep fiberisation trends in the network. Both the optical fibre expansion to 50 millionfkm (by June 2019) and optical fibrecable expansion to 33 million fkm (by June 2020) are well on track and is coming online in a phased manner.
“Data is still a relatively new industry, at the early stage ofexponential growth. As networks become smarter – open, software-defined and programmable with deep fiberisation – our unique proposition of integrated data network solutions makes us the partner of choice for our customers,” said Dr Anand Agarwal, Group CEO, Sterlite Tech.
The Company’s performance in the third quarter of FY’19 reinforces this strategy. Key highlights are:
- Revenues at Rs 1,335 crore,up 60% YoY
- EBITDA at Rs 304 crore, +46% YoY
- PAT at Rs 146 crore, +62% YoY
- Highest ever Order Book at Rs10,231 crore
About Sterlite Technologies:
Sterlite Technologies Ltd [BSE: 532374, NSE: STRTECH] is a data networks solutions leader that designs, builds and manages smarter digital networks globally. It provides end-to-end network solutions for global telecom companies, cloud companies, citizen networks and the defence. With innovation at its core, its technological solutions aredeveloped at Centre of Excellence for broadband research and Centre for Smarter Networks for next-generation network applications. The Company has manufacturing facilities in India, Italy, China and Brazil and two Software Delivery Centres.
Forward-looking and cautionary statements: Certain words and statements in this release concerning Sterlite Technologies Limited and its prospects, and other statements relating to Sterlite Technologies’ expected financial position, business strategy, the future development of Sterlite Technologies’ operations and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of Sterlite Technologies Limited, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Sterlite Technologies’ present, future business strategies, and the environment in which Sterlite Technologies Limited will operate in the future. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, changes in Government policies or regulations of India and, in particular, changes relating to the administration of Sterlite Technologies’ industry, and changes in general economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Sterlite Technologies’ control, include, but are not limited to, those risk factors discussed in Sterlite Technologies’ various filings with the National Stock Exchange, India and the Bombay Stock Exchange, India. These filings are available at www.nseindia.com and www.bseindia.com