STL records good QoQ growth as revenues tally upto Rs 1,160 crore

STL, the digital networks provider, is boasting of scoring high on its earnings that has exceeded the pre-COVID times. STL while announcing its financial results for the second quarter ended  September 30, 2020 said that the comany recorded good QoQ growth in revenues of Rs. 1,160 crore, EBITDA of Rs. 212 crore, PAT of Rs. 58 crore, and order book of Rs. 10,705 crore.

STL says that these operating and financial results were backed by diversified global wins and the company’s differentiated value proposition in delivering end-to-end digital network solutions across all customer segments.

“Our strong performance is a testament to the value we create for our customers by delivering solutions that enable them to achieve their current and future network requirements," said Dr. Anand Agarwal, Group CEO, STL. He added, “Digital Network creators globally continue to invest aggressively in strengthening their current network, to increase reach and quality of their networks. Our strategic investments in building deep technology expertise, integrated digital network solutions, and global talent positions us strongly to address this market demand.”

Digital transformation needs make STL gain business traction  

STL  has the ability to empower its customers to modernize current networks and further build next-gen networks, enabling them to leverage technologies of the future.

As the current situation has rapidly accelerated the need for digital transformation globally, digital network creators continue to invest aggressively in high capacity networks that are densely fiberized, scalable, disaggregated, virtualized, and future-ready. STL, in this, has proved its ability to cater to the needs of digital transformation.

STL shared the following highlights from its earnings statement: 

Q2FY21- Gaining Growth Momentum

• STL will help build a future-ready network for Airtel to deliver a world-class customer experience through enhanced scalability, reduced latency, and improved bandwidth. The densely fiberized network, based on STL’s Opticonn and Lead 360 solutions will also form the foundation for many nextgen services.
• The company has signed a few multi-year and multi-million dollar engagements to deploy Opticonn, wireless solutions, and FTTx Mantra solutions for marquee customers in Europe, the Middle East and Africa, India, and the US.
• Unique positioning with STL Solution Ecosystem: Increased addressable market significantly by enhancing wireless capabilities, such as Wifi6 and 5GNR, along with converged network solutions suite and ecosystem partnerships for 5G networks. One year post integrating Impact Data Solutions Limited (IDS), UK in STL has further solidified the company's data centre solution offerings.
• Stronger presence in Europe: With OFC manufacturing plant in Italy, Data Centre solutions CoE headquartered in the UK, and strategic engagements with key customers in telecom and cloud, STL is rapidly scaling in Europe. Almost 30% of the  total revenue (H1FY21) is from Europe. It is estimated to grow further with large scale network rollouts planned in the region.
• Plant Operations exceed pre-COVID levels: Operational normalcy almost to a full extent across all facilities in India, Brazil, China, and Italy.
• Undivided focus in developing technology: Continued investments in technologies and increased global patent portfolio to 425, for optical connectivity, network services, and virtualized access solutions.
• Driving the next phase of growth by strengthening global leadership: Recently onboarded technology, business, and customer segment leaders with the addition of Dr. Krish Prabhu to its Advisory, Mihir Modi as the CFO, and key appointments for driving customer engagement in the Americas, Europe, and Asia.

Realisation of Vision 2023 on track:

• STL has initiated the expansion of its optical fiber cables capacity from 18 million to 33 million fkm as the company’s strong customer engagement and solution offerings demonstrate positive long-term growth. The capacity expansion is expected to be complete by June 2021.
• Continued growth expected in Q3 and Q4 on a QoQ basis, in accordance with the Vision 2023.

Q2FY21 Financial Highlights

Revenue: Rs. 1,160 crore 

EBITDA: Rs. 212 crore 

PAT: Rs. 58 crore 

Order Book: Rs.10,705 crore

Exports at 47% of revenue