In the first quarter of the present financial year, the company has undertaken a new acquisition to expand its network integration capabilities in Europe. The investments in UK and US have been made with the objective to augment local presence in optical fibre. Further, there has been a healthy order book of Rs 112 billion with top-tier global wins.
July 22, 2021
Sterlite Technologies has announced financial results for the first quarter ended June 30, 2021. The company recorded a strong cumulative order book of over Rs. 112 billion and revenue of Rs. 1309 crore (Rs. 13.09 billion), backed by solid technology solutions and foundational capabilities.
Significant progress on focused global capability build strategy
To cater to the three network build cycles of 5G, FTTx, and Rural broadband, STL continues to make consistent efforts to scale up its global capabilities and develop industry-leading technology solutions. The company’s three growth levers – Globalise system integration, Grow optical business, and Build disruptive wireless solutions – are now yielding results.
Globalise System Integration
• Strategic acquisition in Europe – STL today announced that it will acquire Clearcomm Group – a leading Network Integration company in the UK to further globalize its system integration business. The combined capability of STL and Clearcomm will enable the company to greatly contribute towards ‘Project Gigabit’. This move combined with the existing data center integration capabilities will further augment STL’s presence in network integration in UK and Europe.
• During the quarter, STL also received its first FTTx orders in the UK for its network integration services business.
Grow Optical Business
• Capacity enhancement to 42 Mn fKm with Investments in US and UK – Committing Rs. 2 billion investments to establish optical fibre cable manufacturing and R&D labs in the UK and US. Through these plans, the company confirmed its plans to increase the OFC capacity to 42 Mn fKm, from an existing 33 Mn fKm.
• Leveraging Optical Interconnect capabilities – With the acquisition of Optotec earlier this year, the company’s portfolio for end-to-end FTTx has opened up a total optical solutions addressable market of USD18 billion.
• Successful field trials for Programmable FTTx – The company crossed a significant milestone by successfully integrating its pFTTx solution in the live broadband access network of Chunghwa Telecom.
Build disruptive, wireless solutions
• Recognized for leading technology solutions: STL has been acknowledged by Gartner as a global 5G RAN vendor, and as an Enabler in the Digital Marketplace and OSS/BSS Telecom customer software solutions
• Research and Development efforts: The Company has committed 3-4% of its revenues towards R&D for research and innovation in optical and wireless technologies
As global trends re-energize, STL has been delivering on its financial plan. The company has demonstrated improvement across all financial metrics.
The company has posted net profit/(loss) of Rs. 1309 crore (Rs. 13.09 billion) for the period ended June 30, 2021, as against net profit/(loss) of Rs.8.76 billion for the period ended June 30, 2020, i.e. the revenue has grown by 49% year-on-year.
Also, the company has reported an EBITDA of Rs.2.34 billion for the period ended June 30, 2021, as compared to Rs.1.31 for the same period in the previous financial year. Thus, the EBITDA has grown by 82% year on year. PAT increased to Rs. 1.16 billion in Q1 FY22 as against Rs. 0.06 billion in Q1 FY21.
Delivered responsibly, with a strong ESG focus during the tough second wave of Covid-19, STL continued to maintain a strong focus on ESG. The company’s CSR initiatives positively impacted over 180,000 lives. STL’s environmentally conscious efforts were recognized widely across the Asian Leaders Awards for Waste Management and Best Corporate Responsibility Practices.
Explaining these strategic moves and achievements, Dr. Anand Agarwal, Group CEO, STL, remarked, “During the current unprecedented times, STL continues to provide support in the form of extended services and stronger connectivity to our community and customers. We take pride in solving our customers’ challenges through our global end-to-end solutions.” He added, “In anticipation of the shifts in the industry, STL has continued to strengthen its technology capabilities through investment in developing ecosystems and hiring top industry talent. As we increase our participation in our customers’ digital transformation, we have built a healthy order book, and are confident of delivering the most advanced digital networks for our customers.”