NEW DELHI: Optical fibre maker has posted 40% jump in consolidated net profit at Rs 56 crore in the second quarter ended on September 30, 2016.
Similarly, the company had registered a net profit of Rs 39.97 crore in the same period a year ago.
“The quarter saw a strong and expanding global demand for Optical Fibre , supported by growth in China market. Sterlite Tech posted a total volume of 6.1 million fkm in Q2FY’17 vs 5.5 million fkm in Q1FY’17, operating at close to 25 million fkm annual capacity. At the start of this year, the Company had embarked on the journey of expanding its Optical Fibre capacity to 30 million fkm by mid FY18, which has been progressing well,” the company said in a statement.
Financial Highlights for Q2FY17 (Consolidated – All figures are in Ind AS &Rs crore)
- Recorded revenues of Rs551 crore with an EBITDA of Rs 109crore (20%).
- International sales doubled from Rs 115 crore in Q2FY’16 to Rs 231 crore in Q2FY’17.
- Added new orders worth Rs 731 crore in the current quarter, leading to healthy order book of Rs 2,324 crore at the end of H1FY’17.
- Profit after Tax (PAT) stood at Rs51 crore which included one-time tax benefit on account of merger of passive infrastructure business of Speedon Network Limited (a wholly-owned subsidiary of the Company) into parent company Sterlite Technologies.
- The Board of Directors has approved the Company’s Dividend Policy that entails dividend of around 30% of net profits on the Consolidated Financials basis. In line with the philosophy of the said policy the Board will consider declaration of interim dividend by Circular Resolution on November 2, 2016.
- Cable volumes remain subdued due to slow uptake in India demand.
Elaborating on Q2, Dr Anand Agarwal, CEO, Sterlite Technologies, said, “We are witnessingan expanding optical fibre demand globally and good traction in upcomingnetwork & system integration opportunities in India. With strong industry sentiments around 4G, Smart City, BharatNet and FTTH deployments, we remain bullish on India market and opportunities it presents across our business segments from optical communication products to services and software.” Speaking on the performance in the coming quarters, he stated, “With an expanding order book of currently Rs 2,324 crore and a strong pipeline of over Rs10,000 crore of opportunities under decision, we are committed to deliver stronger performance in the coming quarters.”
Sterlite Tech also announced its smarter network order win from AhmedabadJanmarg Ltd, a public transit system of Ahmedabad Municipal Corporation. As part of the project, an optical fibre backhaul infrastructure will be deployed to interconnect Ahmedabad’s BRTS corridor to the Main Data Centre and Disaster Recovery Site through passive network integration. Various smart city components will ride on this network.
On the business outlook, Pravin Agarwal, Vice Chairman, Sterlite Technologies,said,“With growing data demand, broadband infrastructure will amplify revenues for telecom providers and ensure needed customer experience and loyalty.” He also highlighted the criticality of broadband highways to bridge the urban-rural divideand create numerous opportunities to increase the internet economy. On the role Sterlite Tech can play in this transformation, he said, “We are focused on executing our customer-centric strategy and increase emphasis of our smarter networks offering to leverage the broadband explosion.”
Business & Operational Highlights
- Optical fibre capacity is running at annualised run rate of close to25 million fkm; on track to achieve fibre manufacturing capacity expansion target of 30 million fkmby FY’18.
- Major international win: Sterlite Techselected as one of the two global suppliers of a large European communication service provider, capturing over 65% of its market share.
- Sterlite Tech formednew Advisory Board with Sandip Das and BS Shantharaju. Both will advise on technology and governance systems to make the business future ready.
- Sterlite Tech’s US patent application marked its entry into a strategic opportunity area of sensory applications for smart cities, surveillance, security, and related applications.
- Sterlite Tech Academy began operations to create a certified talent pool of Smarter Network professionals in the country.