Pune, India – September 20, 2017: Sterlite Tech [BSE: 532374, NSE: STRTECH], an end-to-end global technology leader in smarter digital networks was assigned Moody’s Investors Service’s (Moody’s) B1 Corporate Family Rating (CFR). This is the first time that Moody’s has assigned a rating to Sterlite Tech, with a stable outlook.
Sterlite Tech focuses on designing, building and managing smarter networks through its unique silicon-to-software technology capabilities and operations in more than 100 countries. With a strong portfolio of 155 patents, the Company has a focused business spanning across smarter optical communication products, system integration services and telecom software solutions. “The B1 rating reflects Sterlite Tech’s position as a leading manufacturer of optical fibre and optical fibre cable in India and its growing presence internationally, primarily China”, said Annalisa Di Chiara, a Moody’s Vice President and Senior Credit Officer.
With positive shifts in high-bandwidth consuming technologies such as Internet of Things, 5G, national broadband policies and internet consumption patterns, the Company has been witnessing a consistent upward trend in the global markets for the creation of smarter broadband infrastructure. Speaking on the effect of global demand drivers, Anupam Jindal, CFO, Sterlite Tech, said, “Upward trends in global demand has reflected with healthy increase in international revenue at 43% during Q1FY’18. In line with these trends, we are undertaking capacity expansion to 50 million fkm. This expansion will place us in the league of top three integrated fibre manufacturers in the world.” Adding further, he said, “This rating is Moody’s recognition of the Company’s competitive advantage and healthy balance sheet. It also reflects our vision to be a globally recognised player and a step towards higher corporate governance.”
Speaking on the first time international rating, Dr. Anand Agarwal, CEO, Sterlite Tech, said, “We are at the beginning of a global transition towards investments in smarter network technologies that enable 5G, Fibre to the Home and Internet of Things applications. With our diversified business portfolio with fully integrated silicon to software offerings, we are uniquely placed in the global market to address web scale smarter network demands for high-bandwidth consuming applications, rural broadband, smart cities and monetization requirements.”
“As the largest manufacturer of optical fibre in India - in terms of installed capacity - Sterlite Tech is well positioned to capture increased demand for optical fibre. Moreover, the Company manufactures optical fibre out of the basic raw material, silica, which it sells to other manufactures, but also utilises for its own production of optical fibre cable. This situation provides a significant cost advantage, which supports a healthy operating margin”, adds DiChiara, Moody’s Lead Analyst for Sterlite Tech.
About Sterlite Technologies:
Sterlite Technologies Ltd [BSE: 532374, NSE: STRTECH], is a global technology leader that designs, builds and manages smarter digital networks. Sterlite Tech engages in six continents and more than 100 countries, with a digital networks focused business spanning across products, services and software – optical communication products, network & system integration services and OSS/BSS software solutions. The Company has state-of-the-art manufacturing facilities in India, China & Brazil, and aims to transform everyday living by delivering smarter networks. With a strong portfolio of 155 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.