Sterlite Tech 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 percent 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. – Communications Today Bureau