Sterlite Tech Q3 net profit up 63% at Rs 49 crore

NEW DELHI: Optical fibre maker Sterlite Technologies has posted 63% jump in consolidated net profit at Rs 49 crore in the third quarter ended on September 30, 2016.

The company registered a net profit of Rs 30 crore in the same period a year ago.

"With over 130 patents in optical communication products, system & network integration services and software solutions, Sterlite Tech posted the highest ever EBITDA at Rs 145 crore, up by 26% Y-o-Y. Revenues were up by 23% and PAT up by 63% this quarter, as compared to the corresponding quarter, last year," the company said in a statement.

"With strong organic growth in international business, Sterlite Tech crossed the milestone of transforming digital infrastructure in over 100 countries. The company achieved highest ever fibre volumes, and exited Q3 with optical fibre sales at annualised run rate of over 27 million fkm. The quarter also saw highest order booking in the products business at Rs 1,000 crore," it said.

Financial Highlights for Q3FY’17 (Consolidated - All figures are in Ind AS & Rs crore)

Sterlite Tech has posted strong business growth with annual revenue and EBITDA growing at a CAGR of 28% and 36% respectively, over the past four years. For this quarter, major financial highlights were:

• Quarterly revenues at Rs 732 crore, up 23% vs Rs 596 crore Y-o-Y.

• Highest ever EBITDA at Rs 145 crore, up 26% vs Rs 116 crore Y-o-Y.

• Profit After Tax stood at Rs 49 crore, up 63% vs Rs 30 crore Y-o-Y.

• International sales increased to Rs 284 crore in Q3FY’17 from Rs 163 crore in Q3FY’16. Currently, exports are contributing to 39% of revenues.

• The ROCE of the business stood at 22% and ROE at 25%

Elaborating on the Q3 performance, Dr Anand Agarwal, CEO, Sterlite Technologies, said, “Our strong quarter is a testimony to our commitment of delivering the best solution through our end-to-end smarter network offerings. Since optical fibre is the key to building digital infrastructure, we are witnessing strong demand globally, for both our products and optical-fibre based smarter network solution offerings. We foresee this growth in demand to continue.”

Sharing his vision for the company, Pravin Agarwal, Vice Chairman, Sterlite Technologies, said, “Globally, broadband is being considered a human right and governments are taking focused measures and spends to bring high-speed broadband to their citizens. We aim to remarkably transform the global digital infrastructure through our smarter network capabilities.”

Business & Operational Highlights

· Sterlite Tech rolled out Gandhinagar Smart City Services at the hands of Hon’ble Chief Minister of Gujarat, Shri Vijay Rupani in December 2016.

· Honoured with the ‘Broadband Infrastructure Leader Award’ at the Telecom Leadership Forum.

· Improved its position from ‘Niche to Visionary’ in the Gartner Magic Quadrant for Integrated Revenue and Customer Management for its software offerings

· Won two Gold Frost & Sullivan India Manufacturing Excellence Awards in 2016.

· Granted two patents in the USA and one patent in India. These patents consolidate the Company’s entry into strategic domains of specialty fibre and sensory cables.