Sterlite Technologies Ltd [BSE: 532374, NSE: STRTECH] today announced its financial results for the quarter ending June 30, 2016. Sterlite Tech is a focused pure-play telecom company, which designs, builds and manages data networks.
Global Telcos are witnessing increasing data traffic over 3G/4G networks, leading to rapid growth in data revenue. This growth is fuelled by demand for high-bandwidth consuming applications and the continuous evolution of mobile devices with internet-based technologies.
Sterlite Tech’s growth drivers are:
- Mobile data broadband infrastructure requirements for 4G/LTE by Telcos
- Smart Cities requiring basic broadband infrastructure for smart applications
- Rural broadband initiatives like BharatNet
- Broadband infrastructure for Defence and other utilities
- Global Data Growth, served through presence in China, Brazil and Europe.
For these growth drivers, Sterlite Tech is positioned uniquely to play an integral role in designing, building and managing the optical-fibre based broadband infrastructure.
Sterlite Tech’s offerings include:
- High-quality Optical Communication Products through India’s only fully integrated Optical Fibre facility.
- System Integration offering end-to-end services – from infrastructure to applications – for Smart Cities, Defence and other Utility networks.
- Software services to manage billing and operations support for broadband networks.
Financial Highlights for Q1FY17 (Consolidated)
- Revenues for Q1FY17 were at Rs 565 crore, against Rs 463 crore in Q1FY16, registering an increase of 22%
- Q1FY17 EBITDA was at Rs 124 crore, vs. Rs 102 crore in Q1FY16, up 21%
- Profit after Tax (PAT) registered strong growth – PAT for Q1FY17 stood at Rs 40 crore, up 30% Y-o-Y.
- The ROCE of the business stands at 19%, and ROE at 23%
Highlighting the results, Pravin Agarwal, Vice Chairman, Sterlite Technologies, said, “The growth in our business and robust order books are reflective of the large opportunities surfacing in the telecom space for us. Our strong focus on technology and engineering design for smarter network delivery has given us a distinctive edge against the competition to lead India’s transformation towards adopting true broadband infrastructure.”
Citing growth opportunities, Dr. Anand Agarwal, CEO, Sterlite Technologies, said, “We continue to remain bullish on India, while expanding our global footprint with new products and customers. Broadband infrastructure needs to get created throughout the country and we are architecting such smarter networks by bringing world-class design, execution and management capabilities with our end-to-end offerings.”
Business & Operational Highlights
- Sterlite Tech has advanced its optical fibre manufacturing capacity expansion target of 30 million fkm to FY18. Bulk of this expansion will be accomplished through de-bottlenecking with minimal capex.
- Sterlite Tech launched its future-ready Smarter Network that assures reliability, longevity, scalability and traceability with lower Total Cost of Ownership and lowest impact on environment.
- The current phases of Smart City Projects in Gandhinagar and Jaipur are close to completion.
- Sterlite Tech has been appointed on the Board of Directors of FTTH Council APAC, where it will play a key role to drive standardisation in Smart City development.
- Order book stands at Rs 2,100 crore.
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.