STL revenues up 17%; progressing towards global optical leadership

STL, one of the industry’s leading integrators of digital networks, announced its financial results for quarter ended 30 September 2022. STL reported profitable growth with revenues of INR 1,768 crores, up by 12% Q-o-Q and 17% Y-o-Y. Nearly 70% of revenue came from the US and Europe. A robust order book of INR 11,697 crores further cemented STL’s position as a global partner for 5G and FTTH.

5G, FTTH and data centre roll-outs are picking up pace globally and optical demand is on a strong upward trajectory, with the optical fibre cable market size expected to reach ~$10 Bn by 2024[1]. India’s much awaited 5G roll-out has started and will strongly hinge on fibre with telcos planning to lay ~2,00,000 cable kilometers and spend between ~$1.5 Bn to $2.5 Bn[2] on fibre roll-out in next 2 to 3 years. STL has already made strategic investments for this demand cycle and is playing a pivotal role in this ongoing decade of network creation, both in India and internationally.

STL is progressing towards becoming one of the top 3 optical players globally. Expressing confidence on the company’s growth trajectory, Ankit Agarwal, Managing Director, STL said “The world has now recognised broadband as a basic necessity. 5G, FTTH, and Rural connectivity efforts are all coinciding to connect the remaining 40% of the world. Fiberisation is going to be front and centre in this decade of network creation and STL is fully prepared to meet this demand with global capacities, great talent and technology-led solutions. We are constantly innovating to build these networks fast and in the most sustainable way.”

Some key performance highlights

• Continued, long term customer wins: STL reported one of its highest quarterly order intakes of INR ~3,200 crores. The company signed deals with Vocus in Australia, and a top telecom service provider in the US. It also won and a large deal for Optical Interconnect, which comprises of plug and play FTTx accessories and connectorised solutions, with a top-tier European telecom service provider
• Market momentum in key markets: STL now holds ~11% market share of the global (ex-China) OFC market and ~14% market share in the US. In India, the company reported a strong order book with profitable projects in strategic segments
• Leadership in innovation with 742 patents: STL recently unveiled India’s first multicore fibre which will quadruple the capacity of networks. It also announced bespoke solutions for tower fiberisation (5G Cosmos) and rural fiberisation (Gram Galaxy)
• Progress towards Net-Zero by 2030 roadmap: STL became the world’s first optical manufacturer to receive Zero Liquid Discharge certification for all its Indian operations and also announced that 100% of its operations in India and Italy are now Zero Waste to Landfill certified

Key financial highlights

STL continued the positive momentum while focusing on prudent capital allocation and profitability. The company recently divested IDS – a UK-based niche data centre player to rebalance its portfolio.

Commenting on STL’s performance, Ankit Agarwal, Managing Director, STL, further added “We hold our purpose of transforming billions of lives very close to our hearts and are very excited about this opportunity to connect the unconnected. This quarter saw one of the highest order intakes of ~3,200 crore. I really want to congratulate the entire team for delivering such a strong performance in a complex operating environment. There is good traction for our solutions, and we believe that our focused efforts will create stakeholder value and bring us closer to being amongst the top 3 optical players globally.”

CT Bureau