Demerged Sterlite Tech Delivers 28% PAT Growth in FY16

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Sterlite Technologies Limited

26 May, 2016, 15:59 IST

PUNE, India, May 26, 2016 /PRNewswire/ --

-Post Demerger, FY16 Financials Only for Pure-play Telecom Business 

-Robust Performance - Revenues up 33%, EBITDA up 35%, PAT up 28% (as Compared to FY15 Proforma Demerged Telecom Business) 

-Board Declares Dividend of Rs 1 per Share Versus Rs 0.60 per Share Last Year. Dividend Payout Ratio at 31% of PAT 

-Return on Capital Employed (Pre-tax) at 18% and Return on Equity (Post Tax) at 22% 

Sterlite Technologies Ltd [BSE: 532374, NSE:STRTECH], India's only Optical Communication Products, Services & Software Company, today announced its financial results for the year and quarter ending March 31, 2016.

On May 24, 2016, Sterlite Tech had announced demerger effective from the appointed date of April 1, 2015. Post demerger, the FY16 performance is representative of only Telecom business. The FY15 reported numbers would not be to that effect comparable to FY16 reported financial numbers.

Business Performance (Telecom Consolidated) - FY16 Audited Vs FY 15 Proforma 

   
               FY16       FY15    Growth
             (Audited) (Proforma)  (%)
    Revenue    2161      1619      33%
    EBIDTA      465       345      35%
    EBITDA %    22%       21%
    PAT         151       119      27%

All figures in Rs crore, except growth 

Financial Highlights (Telecom Business Performance) - FY16 Audited Vs FY15 Proforma) 

  • FY16 revenue posted strong growth of 33% compared to FY15. CAGR revenue growth of 28% for last 5 years
  • EBITDA grows by 35% on y-o-y basis. Last 5 years, EBITDA CAGR of 36%
  • PAT for FY16 was Rs 151 crore, reflecting a 27% increase as compared to FY15 PAT.
  • On Quarterly basis, standalone Q4FY16 marked the strongest quarter in the year with revenues and EBITDA increasing by 7% and 10% versus Q3FY16.
  • The ROCE (pre-tax) of the business stands at 18%, and return on equity (post-tax) at 22%

Positive quarterly and full year financial results are a testimony of the structurally solid telecom business with unique offerings across the value chain. With its end-to-end telecom offerings, Sterlite Tech is well positioned to address the large growth opportunities surfacing in India and globally for creation of next generation digital infrastructure.

Citing the growth Sterlite Tech saw during the year, Pravin Agarwal, Vice Chairman, Sterlite Technologies, said, "India is at the cusp of a data revolution. We have over 20 years of expertise in enabling digital ecosystem and are fully geared to contribute towards establishing smart networks that support India's growth."

Commenting on the results, Dr. Anand Agarwal, CEO, Sterlite Technologies, said, "We are happy to close the financial year with a strong operational and financial performance. Going forward, we will strengthen our focus on end-to-end telecom opportunities, while investing in building capabilities on core technologies and smart networks. We are fully committed to transforming the digital infrastructure of the country on which the next generation services and applications will be offered. We are excited by the opportunity landscape surfacing in India on network creation and global demand for optical fiber."

Business and Operational Highlights 

  • In Q4FY16, Sterlite Tech achieved an annual production run rate of 22 Mn fkm, successfully increasing optical fiber manufacturing capacity by 10% through de-bottlenecking initiatives.
  • Doubled optical fiber cable manufacturing capacity to 15 Mn fkm.
  • Sterlite Tech completed the acquisition of Elitecore Technologies, adding unique software and integration capabilities to its current offerings. Elitecore has been successfully merged and integrated.
  • Sterlite Tech was awarded its first Smart City project under Digital India for Gandhinagar to provide Smart transport solutions, IP Surveillance, Wi-Fi connectivity. Sterlite Tech has added to the momentum by winning the Jaipur Smart City project in May 2016.

Industry Recognitions 

  • In 2015, Sterlite Tech was recognised amongst India's Top 25 Innovative Industrial Companies by CII.
  • Sterlite Tech won the Frost & Sullivan India Manufacturing Excellence Award 2015.
  • Elitecore Technologies was the winner of Deloitte Technology Fast 50 Award for 2015.

Financial Reported Numbers (Standalone) 

   
                Q4FY16          Q3FY16          Q4FY15
            (Post demerger) (Post demerger) (Pre-demerger)
    Revenue       576             540            979
    EBITDA        123             111            131
    EBITDA%       21%             21%            13%
    PAT            52              41             39

Q4FY16 and Q4FY15 are not comparable. 

Update on Demerger Scheme 

  • The demerger of power business from Sterlite Technologies is effective from the appointed date of April 1, 2015.
  • Demerger of Sterlite Technologies Ltd (STL) will result in two independent companies i.e. Telecom Company rechristened as "Sterlite Tech" and Power Company "Sterlite Power Transmission Ltd (SPTL)".
  • As part of approved Demerger Scheme, STL's shareholders will retain one equity share of Rs 2 in STL (Pure play Telecom company). Additionally, for every five equity share of Rs. 2 each held in STL, the shareholders with either get one equity share of Rs. 2 each of SPTL or
    1 Redeemable Preference Share (RPS) of Rs. 2 each issued at a premium of Rs 110.30 each. The RPS will be redeemable within 30 days of issue if opted for.
  • The value of STPL has been decided by the Board, based on the recommendation of two reputed Independent Valuers (Price Waterhouse & Co LLP and Haribhakti & Co LLP). The implied value per share of STPL has been arrived at Rs 22.46 per share.
  • Price Waterhouse & Co LLP has prepared the share entitlement ratio report with a fairness opinion by Axis Capital, who is acting as the financial adviser to STL.
  • Subject to receipt of certain customary regulatory approvals, the 'Record Date' for the determination of the list of shareholders, who shall be entitled to receive Securities of SPTL pursuant to demerger, is expected to be scheduled in mid-June. The Company will inform the Stock Exchanges at least 7 working days in advance of the 'Record date'. The eligible shareholders will then be sent an Election Notice to select any one of the options available to them under the Scheme.
  • Demerger scheme and related documents are available on http://www.sterlitetech.com/demerger

About Sterlite Technologies: 

Sterlite Technologies Limited (STL) 'Sterlite Tech' [BSE: 532374, NSE:STRTECH]) is world's leading and India's only vertically integrated Optical Communication Products, Services & Software Company. It aims to transform everyday living by delivering smarter networks. Sterlite Tech is India's only fully integrated provider of optical fiber preforms, optical fibers and cables. With expertise in designing, engineering, building and managing broadband data networks, the company has global footprint in 75 countries, including manufacturing units in India, China and Brazil. With a strong portfolio of over 100 patents, Sterlite Tech is home to India's only centre of excellence for broadband research. Projects undertaken by the company include intrusion-proof secure network for the armed forces, rural broadband for BharatNet, developing smart cities, and establishing high-speed Fiber-to-the-Home (FTTH) networks.

For more details, visit http://www.sterlitetech.com

Media Contact:
Sumedha Mahorey
Manager - Corporate Communications, Sterlite Technologies Ltd
[email protected]
[email protected]
+91-22-61140652

Investor Relations
Vishal Aggarwal
Sterlite Technologies Ltd
+91-20-30514000
[email protected]
[email protected]