Result Update – Sterlite Technologies, ICICI Direct

Recovery continued with product segment driving profitability

• Revenues came in at | 1882 crore, up 11.8%% QoQ, 38.8% YoY driven by product segment. The product segment grew 77% YoY, 13% QoQ to | 1486 crore while services declined 22.4% YoY, 7.5% QoQ to | 382 crore
• Reported EBITDA was at | 243 crore, vs. loss in base quarter and up ~5.2% QoQ, with EBITDA margins at 12.9%, largely driven by revenues mix as product segment has superior margins. Product had a margin of 20.3% vs. ~20% in Q2
• PAT was at | 50 crore, up 14% QoQ and vs. loss in the base quarter

Key triggers for future price performance

• Demand offtake from expanded and overall fibre/cable pricing trajectory
• Improvement in leverage, which has gone up due to expansion and stretched working capital in services business
• Improving optical interconnect attach rate to aid margins

For details, https://www.icicidirect.com/mailimages/IDirect_SterliteTech_Q3FY23.pdf

CT Bureau