Sterlite Technologies doubles net profit to Rs 29.39 crore in Q2

PUNE: Sterlite Technologies, global provider of solutions for the high-speed data transmission and power transmission networks, has announced its quarterly results for the period ending September 30, 2015 showing a net profit of Rs 29.39 crore which is the more than double as compared to the corresponding period of last fiscal.

The company’s two-fold rise in net profits is attributed to the following business highlights:

• Driven by “Digital India” focus towards broadband becoming a utility in India and Indian telecom networks requiring significant investments in order to migrate to high-speed data networks, the opportunity landscape in the country is unprecedented. The company’s recent acquisition of Elitecore Technologies is one such step in this direction.
• On the network side, the company developed “NOVA Fiber” in close collaboration with one of India’s leading telecom operator to address the problem of increased signal loss due to poor network conditions. In another, project, a customized optical fiber cable solution has been developed for the Gurgaon Rapid Metro Project that solves installation problems in Metro signaling systems. In the international market, Sterlite has increased its optical fiber product footprint in Europe by helping a leading global operator expand its network across 50 Towns and over 500,000 buildings in Ireland
• Within the telecom services segment, the company is rolling out the NFS project in one of the most challenging terrains in the country.
• Sterlite is developing power transmission infrastructure utilizing products such as OPGW and power cables.
• Sterlite Grid business continues to invest in technology and has recently joined hands with Burns & McDonnell to introduce world class engineering and construction methodologies in power transmission projects.

Sterlite's financial highlights (Standalone) for the quarter and half year ended September 30, 2015 are as follows: 

• Revenues for the Q2 FY16 were at Rs 1,056 crore, up 8% on the previous quarter and 78% when compared Q2 FY15. Overall revenues for H1 2016 were at Rs 2,031 crore, higher by 76% as compared to H1 2015.
• EBITDA for the quarter was at Rs 136 crore, up 14% on the previous quarter and 67% as compared to Q2 FY15. On a half yearly basis the EBITDA was at Rs 256 crore, up 67% as compared to H1 2015.
• Well diversified revenue base across telecom and power business with overall 25% of revenues coming from exports.
• Profit after taxes (PAT) also shown very robust growth – PAT for Q2 2016 at Rs 29 crore, up 45% on the previous quarter and 134% when compared to Q2 2015. PAT for the half year was at Rs 50 crore up 125% as compared to H1 2015.
• In May 2015, the company announced that it would demerge its power businesses into a separate undertaking. The demerger proceedings are progressing as per schedule and expected to close in March 2016 subject to routine regulatory approvals from the High Court, creditors and shareholders.

Financial highlights for the Telecom business (Standalone) for the quarter and half year ended September 30, 2015 :     

• Revenues from the Telecom products and solutions business for the quarter were Rs 478 crore, up 13% on the previous quarter. For the half year, the revenues were at Rs 902 crore, a 48% increase as compared to H1 2015.
•  EBITDA for the quarter was at of Rs 112 crore, a growth of 11% on a quarterly basis and 47% as compared to Q2 FY15. H1 2016 EBITDA was at Rs 213 crore, a 46% increase as compared to H1 2015.
• Optical Fiber (OF) Volumes were 4.7 million fiber Kilometers while volumes of Optical Fiber Cables (OFC) were 2 million fiber Kilometers with the fiber-to-cabling mix at 43% during the quarter in line with the previous quarter.

Financial highlights for the Power business (Standalone) for the quarter and half year ended September 30, 2015:   

• Revenues from the Power products and solutions business for the quarter were Rs 562 crore, a marginal increase of 5% over the previous quarter and nearly double of Q2 FY15. For the half year, the revenues were at Rs 1099 crore, up 113% due to one off conditions in the previous year.
• EBITDA for the quarter was at Rs 25 crore, a growth 33% as compared to the previous quarter, EBITDA for the half year was at Rs 43 crore reflecting a return to more normalized performance for the business.
• Power conductor volumes for the quarter were 30,176MT in line with the previous quarter
• Revenues for the power transmission business were Rs109 crore for Q2 FY16, with EBITDA of Rs 100 crore. Of the seven projects in the portfolio, three of them are now fully operational and have been generating revenues as per the agreed tariffs. The additional four projects are expected to be commissioned as per our original schedule.

 Commenting on the results, Pravin Agarwal, Vice Chairman, Sterlite Technologies, said, “We had an excellent quarter amidst a not so encouraging macro backdrop. We continue to be positive and optimistic on the developments within the company as well as in the markets we operate. Globally data consumption continues to grow as per our expectations and as the next generation of networks is created, we are investing in building an organization with strong capabilities built on world class manufacturing capabilities. The combination of capacities and capabilities should help to deliver our longer term vision of being the partner of choice of telecom operators as well as power utilities globally.”