Sterlite Tech's Q1FY17 Profits up 30%; Introduces Smarter Networks

PUNE, India, July 25, 2016 /PRNewswire/ --

Sterlite Technologies Ltd [BSE: 532374, NSE: STRTECH] today announced its financial results for the quarter ending June 30, 2016. Sterlite Tech is a focused pure-play telecom company, which designs, builds and manages data networks. 

Growth dynamics 

Global Telcos are witnessing increasing data traffic over 3G/4G networks, leading to rapid growth in data revenue. This growth is fuelled by demand for high-bandwidth consuming applications and the continuous evolution of mobile devices with Internet-based technologies.

Sterlite Tech's growth drivers are:

• Mobile data broadband infrastructure requirements for 4G/LTE by Telcos
• Smart Cities requiring basic broadband infrastructure for smart applications
• Rural broadband initiatives like BharatNet
• Broadband infrastructure for Defence and other utilities
• Global Data Growth, served through presence in China, Brazil and Europe.

For these growth drivers, Sterlite Tech is positioned uniquely to play an integral role in designing, building and managing the optical-fibre based broadband infrastructure.

Sterlite Tech's offerings include:

• High-quality Optical Communication Products through India's only fully integrated Optical Fibre facility.
• System Integration offering end-to-end services - from infrastructure to applications - for Smart Cities, Defence and other Utility networks.
• Software services to manage billing and operations support for broadband networks.

Financial Highlights for Q1FY17 (Consolidated) 

• Revenues for Q1FY17 were at Rs. 565 crore, against Rs 463 crore in Q1FY16, registering an increase of 22%
• Q1FY17 EBITDA was at Rs 124 crore, vs. Rs 102 crore in Q1FY16, up 21%
• Profit after Tax (PAT) registered strong growth - PAT for Q1FY17 stood at
  Rs 40 crore, up 30% Y-o-Y.
• The ROCE of the business stands at 19%, and ROE at 23%

   
    Particulars Q1FY2016 Q1FY2017 % Growth
      Revenue     463      565       22
      EBIDTA      102      124       21
        PAT        31       40       30

All figures are in Ind AS & in Rs crore, except growth 

Highlighting the results, Pravin Agarwal, Vice Chairman, Sterlite Technologies, said, "The growth in our business and robust order books are reflective of the large opportunities surfacing in the telecom space for us. Our strong focus on technology and engineering design for smarter network delivery has given us a distinctive edge against the competition to lead India's transformation towards adopting true broadband infrastructure."

Citing growth opportunities, Dr. Anand Agarwal, CEO, Sterlite Technologies, said, "We continue to remain bullish on India, while expanding our global footprint with new products and customers. Broadband infrastructure needs to get created throughout the country and we are architecting such smarter networks by bringing world-class design, execution and management capabilities with our end-to-end offerings."

Business and Operational Highlights 

• Sterlite Tech has advanced its optical fibre manufacturing capacity expansion target of 30 million fkm to FY18. Bulk of this expansion will be accomplished through de-bottlenecking with minimal capex.
• Sterlite Tech launched its future-ready Smarter Network that assures reliability, longevity, scalability and traceability with lower Total Cost of Ownership and lowest impact on environment.
• The current phases of Smart City Projects in Gandhinagar and Jaipur are close to completion.
• Sterlite Tech has been appointed on the Board of Directors of FTTH Council APAC, where it will play a key role to drive standardisation in Smart City development.
• Order book stands at Rs 2,100 crore.

About Sterlite Technologies: 

Sterlite Technologies Limited designs, builds and manages smarter networks. Sterlite Tech is a pure play telecom focussed business that develops and delivers optical communication products, network and system integration services and software solutions for telecoms globally. Sterlite Tech is among the leaders in all its business areas and has operations on a global scale with manufacturing presence in India, China and Brazil. Sterlite Tech aims to transform everyday living by delivering smarter networks. Sterlite Tech is India's only fully integrated provider of optical fibre preforms, optical fibres and cables. With a strong portfolio of over 125 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, Smart Cities' development, and establishing high-speed Fibre-to-the-Home (FTTH) networks.

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

For details, contact:
Corporate Communications    
Sumedha Mahorey    
Sterlite Technologies Ltd    
Phone: +91-22-30450404    
Email: [email protected]    

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