Sterlite Technologies Ltd [BSE: 532374, NSE: STRTECH], a telecom major, known to design, build and manage data networks, today announced its financial results for the quarter ending September 30, 2016.
The quarter saw a strong and expanding global demand for Optical Fibre, supported by growth in China market. Sterlite Tech posted a total volume of 6.1 million fkm in Q2FY’17 vs 5.5 million fkm in Q1FY’17, operating at close to 25 million fkm annual capacity. At the start of this year, the Company had embarked on the journey of expanding its Optical Fibre capacity to 30 million fkm by mid FY18, which has been progressing well.
Financial Highlights for Q2FY17 (Consolidated – All figures are in Ind AS & Rs crore)
- Recorded revenues of Rs 551 crore with an EBITDA of Rs 109 crore (20%).
- International sales doubled from Rs 115 crore in Q2FY’16 to Rs 231 crore in Q2FY’17.
- Added new orders worth Rs 731 crore in the current quarter, leading to healthy order book of Rs 2,324 crore at the end of H1FY’17.
- Profit after Tax (PAT) stood at Rs 51 crore which included one-time tax benefit on account of merger of passive infrastructure business of Speedon Network Limited (a wholly-owned subsidiary of the Company) into parent company Sterlite Technologies.
- The Board of Directors has approved the Company’s Dividend Policy that entails dividend of around 30% of net profits on the Consolidated Financials basis. In line with the philosophy of the said policy the Board will consider declaration of interim dividend by Circular Resolution on November 2, 2016.
- Cable volumes remain subdued due to slow uptake in India demand.
Elaborating on Q2, Dr Anand Agarwal, CEO, Sterlite Technologies, said, “We are witnessing an expanding optical fibre demand globally and good traction in upcoming network & system integration opportunities in India. With strong industry sentiments around 4G, Smart City, BharatNet and FTTH deployments, we remain bullish on India market and opportunities it presents across our business segments from optical communication products to services and software.” Speaking on the performance in the coming quarters, he stated, “With an expanding order book of currently Rs 2,324 crore and a strong pipeline of over Rs 10,000 crore of opportunities under decision, we are committed to deliver stronger performance in the coming quarters.”
Sterlite Tech also announced its smarter network order win from Ahmedabad Janmarg Ltd, a public transit system of Ahmedabad Municipal Corporation. As part of the project, an optical fibre backhaul infrastructure will be deployed to interconnect Ahmedabad’s BRTS corridor to the Main Data Centre and Disaster Recovery Site through passive network integration. Various smart city components will ride on this network.
On the business outlook, Pravin Agarwal, Vice Chairman, Sterlite Technologies, said, “With growing data demand, broadband infrastructure will amplify revenues for telecom providers and ensure needed customer experience and loyalty.” He also highlighted the criticality of broadband highways to bridge the urban-rural divide and create numerous opportunities to increase the internet economy. On the role Sterlite Tech can play in this transformation, he said, “We are focused on executing our customer-centric strategy and increase emphasis of our smarter networks offering to leverage the broadband explosion.”
Business & Operational Highlights
- Optical fibre capacity is running at annualised run rate of close to 25 million fkm; on track to achieve fibre manufacturing capacity expansion target of 30 million fkm by FY’18.
- Major international win: Sterlite Tech selected as one of the two global suppliers of a large European communication service provider, capturing over 65% of its market share.
- Sterlite Tech formed new Advisory Board with Sandip Das and BS Shantharaju. Both will advise on technology and governance systems to make the business future ready.
- Sterlite Tech’s US patent application marked its entry into a strategic opportunity area of sensory applications for smart cities, surveillance, security, and related applications.
- Sterlite Tech Academy began operations to create a certified talent pool of Smarter Network professionals in the country.
About Sterlite Technologies:
Sterlite Technologies Ltd [BSE: 532374, NSE: STRTECH], is a global technology leader in smarter digital networks. With a pure-play telecom focused business that develops & delivers optical communication products, network & system integration services and OSS/BSS software solutions, Sterlite Tech has a sales network in six continents. The Company has manufacturing presence in India, China & Brazil, and aims to transform everyday living by delivering smarter networks. With a strong portfolio of over 130 patents, Sterlite Tech is home to India’s only Centre of Excellence for broadband research. Projects undertaken by the company include intrusion-proof smarter data network for the Armed Forces, rural broadband for BharatNet, Smart Cities’ development, and establishing high-speed Fibre-to-the-Home (FTTH) networks.
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.