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- Playing an integral role in Govt. of India’s Digital India initiative with products,
network installation and managed services capabilities
- Continues focus on research & development; 10% of telecom business revenues from new & innovative products
- Overall revenue growth of 73% and EBITDA growth of 67% on a YoY basis
Pune, India – July 23, 2015: Sterlite Technologies Limited “Sterlite” [BSE: 532374, NSE:STRTECH], a leading global provider of solutions for the high-speed data transmission and power transmission networks, today announced its results for the quarter ended June 30, 2015
Industry & Business Highlights
- Sterlite Technologies is integrated with Government of India’s Digital India vision of enabling digital infrastructure as a utility to every citizen. Sterlite today has become a preferred partner to deliver high speed data based end to end networks with a comprehensive suite of products, network design, installation and managed services.
- Sterlite is building an intrusion proof communication network for the Indian Army in Jammu & Kashmir under the NFS Project and is deploying highly specialized optical fiber and cable for this network creation. The NFS installation has witness an increased pace of deployment over the last quarter. Sterlite has also pioneered last mile connectivity in dense urban centers by connecting more than 160,000 homes in 6 cities with FTTH network capable of handling upto 100 Mbps of speed.
- Optical fiber remains as the most viable medium for high speed data communication and even wireless
access will need to have fiber based backhaul networks. While countries like China have installed about
900 Million Kms, US with around 500 million Kms of fiber to enable the data transmission, India today
has only 80 Million Kms. We expect that there will be a large demand of optical fiber over the next
decade in India’s effort towards matching global standards of communication. Keeping these trends in
mind, over the last few years, we have invested in plant capacities. The fiber capacity has been
increased to 20 million km per annum from 12 million. The optical fiber cables capacity is being
doubled to 15 million km per annum with an investment of Rs. 150 Crores in the current fiscal. We
expect to complete this capacity expansion by Q4 of this financial year
- The optical fiber and cable infrastructure within the country is growing to keep pace with the demand
while challenges, among them, robust installation continues to be problem areas for service providers. Sterlite has been focusing on the telecommunications needs of the country and has been investing
in further building research capabilities in products, design & engineering at the state of the art
Center of Excellence. The newly developed "Yogaflex" micromodule cable family and "OH-LITE
NOVA" optical fiber offer superior mechanical flexibility, ease of installation and resistance to extreme
situations of turns, bends and stresses during installation. These innovative designs will play an
important role in the long-distance, metropolitan as well as the upcoming Fiber to the Home markets in
concurrence with the needs of the country
- Power industry witnessing revival with increased focus on national projects such as 24x7 Power for All
and thrust on renewable power generation will need T&D capacity to increase manifold. Sterlite Power
business has built unique capabilities that are built on a combination of high specification products
and strong engineering and project management capabilities
- Power business has successfully executed two challenging re-conductoring projects in urban areas, in
a very compressed time frame and across congested residential colonies. The business continues to
witness very good demand for such integrated offerings from utility providers.
Financial Highlights for the quarter ended June 30, 2015
- Revenues for Q1 FY16 were Rs 975 crore, higher by 73% compared to Revenues of Rs 564 crore in the
same quarter last year – nearly 25% of the revenues were from export markets
- EBITDA grew by 67% from Rs. 71 crore in Q1FY15 to Rs. 119 crore in the current quarter.
- PAT was higher by 122% from Rs. 9 crore in Q1 last year to Rs. 20 crore in Q1FY16
- The total order book as of 30th June was at Rs 4,205 crores with the Telecom order book at Rs 2,087
crores and Power at 2,118 crores. Nearly 80% of the order book is domestic focused reflecting the
underlying growth on account of the communication and power infrastructure being built out in India.
- In May, 2015 the Company announced that it would demerge its power businesses into a separate
undertaking. The Demerger proceedings are underway and expected to close in Q4 2016 subject to
approvals by the High Court, SEBI, shareholders and creditors of STL and other relevant regulatory
Telecom Segment Highlights:
- Revenues from the Telecom products and solutions business for the quarter were Rs. 424 Crores with
EBITDA of Rs 101 Crores.
- Optical Fibre (OF) Volumes were 4.5 million fiber Kilometers while volumes of Optical Fibre Cables (OFC)
were 1.8 million fiber Kilometers with the fibre-to-cabling mix at 40% during the quarter.
Power Segment Highlights:
- Revenues from the Power products & solutions business revenue were Rs. 537 Crores for Q1 FY16, with
EBITDA of Rs. 18 Crores.
- Volumes for the conductors for the quarter were 30,347MT compared to 8,794 MT for Q1 FY15.
- Revenues for the power transmission business were Rs.88 Cr for Q1 FY16, with EBITDA of 82 Cr. The
increase is on account of progressive commissioning of elements in the BDTCL and JTCL projects.
- Post the end of the quarter, the Company has been awarded the Maheshwaram project in Telangana, a
765KV line that is expected to generate Rs55 crores of levelised tariff.
Commenting on the results, Pravin Agarwal, Vice Chairman, Sterlite Technologies Ltd., said, “We had a strong
quarter of topline and bottom line growth across our telecom and power verticals during a transformational
time in our business. The telecom business continues to witness strong traction on the back of scaling up of
connectivity infrastructure both domestically and overseas. The quality of growth is heartening given the profile
of customers who appreciate the integrated business model as well as the evolving and pioneering product
portfolio. We are confident of scaling greater heights as the data opportunity unfolds further across the country
and the region. And through it all, we shall continue to remain focused on building sustainable value for all
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||Q1 FY 15
|Net Revenues (INR Cr)
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|EBITDA (INR Cr)
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INR to USD at 64
About Sterlite Technologies Limited
Sterlite Technologies Limited (“Sterlite”) [BSE: 532374, NSE: STRTECH], is a leading global provider of transmission solutions for the power and telecom industries. Equipped with a product portfolio that includes power conductors, optical fibers, telecommunication cables and a comprehensive telecom systems / solutions portfolio, Sterlite's vision is to 'Connect every home on the planet'. Sterlite is also executing multi-million dollar power transmission system projects, pan-India.
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 and 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. Assumption US$ = Rs 45.