Sterlite Tech Q1 net profit up 61% at Rs 61 crore

NEW DELHI: Optical fibre maker Sterlite Technologies has posted 61% jump in consolidated net profit at Rs 61 crore in the first quarter ended on June 30, 2017.

The company registered a net profit of Rs 38 crore in the same period a year ago.

The company reported financial results for the first quarter ended June 30, 2017, with its highest ever quarterly revenues driven by strong order book and export sales. The Company reported the highest ever quarterly export sales of Rs 320 crore and highest order book of Rs 3,140 crore at the end of this quarter.

Sterlite Tech focuses on designing, building and managing smarter networks for four key customer segments – Global Service Providers, Smart Cities, Rural Broadband and Large Enterprises – partnering with them to succeed through its unique silicon-to-software capabilities.

With positive shifts in technology, national policies and consumption patterns for the creation of smarter broadband infrastructure, this quarter saw optical fibre demand showing a consistent upward trend in the global markets. This reflected with healthy increase in exports at 43% of revenues. In line with global demand trends, Sterlite Tech is on track to achieve its 30 million fkm expansion by middle of this financial year. The Company is now embarking on its next leg of capacity expansion to 50 million fkm, to be completed by June 2019. This will place Sterlite Tech in the league of top three integrated fibre manufacturers in the world. The Company is planning to bring this new capacity in phases, over the next three years.

Financial Highlights for Q1FY’18 (Consolidated - All figures are in Ind AS & Rs crore)

• Quarterly revenues at Rs 744 crore, up 23% vs Rs 603 crore YoY
• EBITDA at Rs 162 crore, up 32% vs Rs 122 crore YoY
• Profit After Tax at Rs 61 crore, up 61% vs Rs 38 crore YoY
• ROCE of the business in Q1FY’18 at 26%

Elaborating on the performance, Dr Anand Agarwal, CEO, Sterlite Tech, said, “Our strategy to design, build and manage broadband networks is augmenting well in the domestic and international markets leading to organic growth. With our unique silicon-to-software capabilities, we are able to address the requirements of web-scale networks for all new transformational technologies such as Cloud Computing, Internet of Things (IOT), M2M and Augmented Reality (AR). As the world moves toward the next phase of digital evolution through global governments’ focus on the creation of Gigabit societies, smart cities and rural broadband, we will continue to see sustained long-term growth with our unique IOT integration capabilities.”

Sharing on the Company’s growth dynamics, Pravin Agarwal, Vice Chairman, Sterlite Tech, said, “Over 150 countries have announced national and rural broadband plans, with India among the forefront with Digital India, BharatNet and Smart Cities. With smarter broadband networks being the key to the realisation of this vision, we will continue to impact everyday living experiences through our smarter network capacities and capabilities.”