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STL sets up end-to-end 5G Ecosystem with its strong portfolio of optical fibres and wireless technologies

- Plans to double revenues to Rs. 10,000 crores in the next 3 years

- Operational normalcy restored back to pre-Covid levels

Pune, India - July 23, 2020: STL [NSE: STRTECH], an industry leading integrator of digital networks, today announced financial results for the first quarter ended June 30, 2020. The company recorded a strong cumulative order book of over Rs. 10,300 crore and revenues of Rs. 876 crore. While the revenues for the quarter were affected by lockdowns in various parts of the globe due to the Covid-19 pandemic, the company’s performance showcased a balanced focus on employee well-being and supporting customers with resilience and adaptability. STL is proud of its role in upgrading and maintaining the digital lifeline connecting the world for its customers.

During this period, STL has further invested in building a one-of-a-kind end-to-end Digital networks ecosystem, including next-gen optical and wireless (5G) portfolio for all markets. Subsequently global, marquee network creators are actively discussing large scale engagements with STL for 5G networks, FTTH rollouts, Data centers, and network modernisation.

Earlier this month, at STLescope 2020, STL announced Vision 2023 to investors and analysts. Over the next-3 year, STL plans to:

  • (a) double the revenue to Rs. 10,000 crore,
  • (b) reduce the net debt to equity by half to 0.5, and
  • (c) deliver a Return on Capital Employed (RoCE) above 20%.

This comes with the backdrop of a credible performance - doubling of revenues in the last 3 years.

Industry at Inflection Point

As remote working becomes the new norm, the shift to digital is now permanent. Globally, internet traffic has increased significantly, and the demand for data connectivity continues to grow exponentially. The current digital infrastructure is not primed to manage this sudden spike in web traffic, so a completely new architecture is evolving - the Next-Gen Digital Network. These virtualised networks will be software-driven, disaggregated, converged, fibre rich, and close to the Edge.

Digital service providers and cloud companies globally have accelerated their plans to bring these digital networks to the market, while they continue to invest in modernising the current networks.

STL, with its unique value proposition – 25 years in optical connectivity, large-scale digital network integration, and virtualised wireless capabilities, is gaining global prominence as a leading integrator of digital networks.

Empowering Customers to realise their Vision

In the current times, as connectivity becomes an essential service like food, water and electricity, STL continues to support its customers relentlessly by delivering end-to-end solutions for their fixed and wireless networks:

  • Scaling up on execution: Delivered Intrusion proof smarter network for the Indian Army and made our borders more secure. Almost 82% of the Mahanet project delivered with network infrastructure deployment to over 3500 gram panchayats.
  • Plant Operations back to pre-Covid levels: Operational normalcy restored almost to a full extent across all facilities in India, Brazil, China and Italy.
  • Winning new opportunities: Awarded multi-million dollar contracts in the UK, Africa, Middle East, Italy, and Russia. Secured new orders from global digital service providers. Cumulative Order Book of over Rs. 10,300 crores.
  • Investing in Technology: Continued investments in technologies and increased global patent portfolio to 376, for optical connectivity, network services, and virtualized access solutions.
  • Focusing on social responsibilities: Achieved 94% on the EcoVadis Business Sustainability Assessment. Delivered quality healthcare to almost 2000 tribals, amidst global crises and lockdown. Won the India CSR Award for Excellence in Corporate Social Responsibility for the second consecutive year.

Leading one-of-a-kind 5G Ecosystem

STL continues to strengthen the Make in India 5G ecosystem by investing in technology and assembling an ecosystem of partners in hardware manufacturing, cloud computing, and academia. The ecosystem will create the Next-Gen Digital Network by bringing together four specialised technological confluences – (i) wired and wireless (ii) software and hardware (iii) connectivity and compute, and (iv) open source - all at the edge of the network. This network will bring the scale and quality to bring affordable Internet to the world.

Q1FY21 Financial Highlights

Revenue: Rs. 876 crore
EBITDA: Rs. 131 crore
PAT: Rs. 6 crore
Order Book: Rs.10,312 crore
Exports at 51% of revenue

“Digital disruption is the new normal, and the world is embracing the changes that come with it. New ways of working, new business models and new opportunities are emerging. We are seeing the current telecom infrastructure evolving to a new digital network architecture - virtual, converged, disaggregated, and close to the Edge”, said Dr. Anand Agarwal, Group CEO, STL. He added, “As our customers are swiftly advancing towards creating these new digital networks, we are uniquely positioned with our 5G Ecosystem and digital network integration capabilities, to deliver these next-gen digital networks for our customers globally”.

To know more about the company’s strategy and Q1FY21 results, please log in to Analyst Call today at 16.00 IST.


About STL - Sterlite Technologies Ltd:

STL is an industry-leading integrator of digital networks.

We design and integrate these digital networks for our customers. With core capabilities in Optical Interconnect, Virtualised Access Solutions, Network Software and System Integration, we are the industry’s leading end-to-end solutions provider for global digital networks. We partner with global telecom companies, cloud companies, citizen networks and large enterprises to deliver solutions for their fixed and wireless networks for current and future needs.

We believe in harnessing technology to create a world with next generation connected experiences that transform everyday living. With intense focus on end-to-end network solutions development, we conduct fundamental research in next-generation network applications at our Centre of Excellence. STL has a strong global presence with next-gen optical preform, fibre and cable manufacturing facilities in India, Italy, China and Brazil, along with two software-development center’s across India and one data centre design facility in the UK.

For more details, visit: www.stl.tech, Twitter, LinkedIn, YouTube
Media Relations Agency Contact Investor Relations
Khushboo Chawla
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Email: pankaj.dhawan@stl.tech
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