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Sterlite Tech reports profit in Q4 on higher sales, margin

Sterlite Technologies Ltd. is back in profit in the fourth quarter of fiscal 2023, on higher sales and margin.

The optical fibre and digital solutions provider reported a profit of Rs 63 crore in the quarter ended March, on the back of robust performance across the geographies the company is present in.

Sterlite Tech Q4 FY23 Highlights (YoY)

  • Revenue from operations rose 25% to Rs 1,872 crore.
  • Operating profit, or Ebitda, rose 70% to Rs 280 crore, while margin rose 400 basis points to 14.95%.
  • Expenses rose to Rs 1,616 crore as compared with Rs 1,364 crore a year ago, on the back of increase in other expenses to Rs 512 crore from Rs 385 crore a year ago.

On the full year basis, revenue rose 27% YoY to Rs 6,925 crore, due to strong execution of outlined activities, the company said in a statement.

Full year Ebitda rose 29%, while PAT was up 51% YoY.

The company reported 46% YoY revenue growth in its optical business, along with a 93% Ebitda increase, on the back of increased volume and realisations as well as significant growth in its focus markets.

In the U.S., Sterlite Tech kicked off commercial operations in its cable facility in South Carolina. In Europe and the U.K., the company deepened its existing engagements and also partnered with 20 new customers, closing FY23 with orders valued at Rs 2,400 crore.

In India, Sterlite Tech worked with top telecom operators for their pan-India fibre rollouts, winning orders worth Rs 1,000 crore, it said.

Unlocking Long-Term Value In Global Services Business
To unlock future growth potential of the Global Services business, Sterlite Tech’s board of directors have approved the demerger of the business into a separate legal entity, on a going concern basis.

The decision is likely to be approved by shareholders and regulators in the next 9-12 months, Ankit Agarwal, managing director at Sterlite Tech, told BQ Prime in an interview. After that, it will be listed as a separate entity on the exchanges, he said.

The business will drive large-scale network and information technology infrastructure projects under Bharat Net and other large telecom projects being rolled out across India and abroad, he said.

The company has also recently announced its foray into the multi-trillion dollar IT services industry. This was achieved through the formation of STL Digital, which is focused on engineering digital experiences for customers across verticals, including telecom, technology, manufacturing and healthcare, the company said in the statement.

STL Digital is led by Raman Venkatraman, who is an industry veteran with nearly 30 years of global experience. The business unit has acquired 18 global customers, with an order book of Rs 650 crore.

Shares of Sterlite Technologies were down 0.21% on Wednesday, while the benchmark Sensex was down 0.54%.

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