STL Announces Fiscal Year 2019 Results 

LONDON, April 24, 2019 -- Sterlite Technologies Ltd - STL [BSE: 532374, NSE: STRTECH], a global data network solutions company, reported another year of solid financial performance. The company’s steady growth over the last several quarters is a result of its strategic focus on offering data network solutions to an expanding global market of telcos, cloud companies, citizen networks and large enterprises.

FY’19 – A transformative year

As cloud companies intensified network build, telcos increased fibre deployment with high-impact solutions, defence modernised its networks, and rural and urban broadband accelerated, FY’19 was a transformative year for STL. It acquired new customers and launched end-to-end solutions, on the back of accelerated innovation, an agile supply chain and best-in-class talent.

·         35 new customers: The company won customers across all its customer segments, prominent ones being two of the world’s top cloud companies; several tier one telcos, including partnership for network creation for one of the world’s largest greenfield rollouts of 4G; and modernising the Indian Navy’s digital communications network. With this, India, Europe and LATAM now account for about 90% of the company’s revenues.

·         Six new solutions and several partnerships: With its unique silicon-to-software capability, the company designed and launched several network solutions. Some notable launches included FTTx Mantra (fully integrated, ready to implement FTTx solution) and TruRibbon (high-density optical fibre cable for high-capacity networks). The company partnered with industry leaders for some of these, including several partnerships for the Defence, and with open-source consortiums such as O-RAN and TIP.

·         271 patents: The company filed its highest-ever patents in a single year, taking its global patent filing count to 271. These filings protect the company’s deep technology investment in strategic areas. It also launched SPEL – India’s first technology lab for structured networking solutions. This is in addition to its two earlier labs – Centre of Excellence for broadband research and Centre for Smarter Networks for next-generation network applications.

·         Capacity expansion and agile delivery: With the acquisition of Metallurgica Bresciana in Italy, the company strengthened its position in Europe and acquired new product and customer portfolios. Meanwhile, its planned expansion with new Industry 4.0 plant at Aurangabad is ready to come online with 50 million fkm fibre capacity by June 2019, while it is on track to deliver its doubled fibre cable capacity of 33 million fkm by June 2020.

·         Best-in-class talent: The company continued to strengthen its technology expertise with hiring key talent for optical fibre research, software defined networks, converged networks, connectivity solutions and data science.

·         Environment, sustainability and governance: The company’s commitment to the environment won its optical fibre cable plant in Silvassa, India the prestigious IntertekZero Waste to Landfill Certification. It also became a signatory to United Nations Global Compact, the world’s largest forum on corporate sustainability.

Consolidated Financials – All-time high

This focus on deep customer engagement, solutions build for hyper-scale networks, ongoing innovation, agile supply and key talent contributed to the company’s excellent financial performance.

Q4 FY’19 Financial Highlights

·         Highest quarterly Revenues at $256 Million

·         Highest quarterly EBITDA at $47 Million, up 38% YoY

·         Highest quarterly PAT at $24 Million, up 47% YoY

FY’19 Financial Highlights

The company’s financials have continued to show superlative growth. Key metrics are:

·         Open order book at $1,502 Million, 2.1 times the annual revenue

·         Revenues at $727 Million, up 59% YoY

·         EBITDA at $166 Million, up 48% YoY

·         PAT at $80 Million, up 68% YoY

·         ROCE at all-time-high of 34%

The company continues to stay committed to deliver PAT of $100 Million in FY’20.

With these strong numbers, the Board of Directors has recommended Final Dividend of 175% of face value per share for FY’19.

FY’20 and beyond – An exciting future

As telcos, cloud companies and new digital infrastructure players create hyper-scale networks, STL is at the helm of this network creation opportunity. With its data network solutions for Mobility, Last-mile access, Long-haul connectivity, Network modernisation and Data centres, across large customer segments globally, the company’s total addressable market has expanded to a market size of $75 Billion by FY’23.

As the company’s focus expands to end-to-end technology solutions for data networks, it is refreshing its identity to reflect a simplified, transformed company that is leading the future of networks.

To know more about the company’s strategy and FY’19 results, please see the Investor Presentation.

About Sterlite Technologies Ltd - STL

STL is a global leader in end-to-end data network solutions.

We design and deploy high-capacity converged fibre and wireless networks. With expertise ranging from optical fibre and cables, hyper-scale network design, and deployment and network software, we are the industry's leading integrated solutions provider for global data networks. We partner with global telecom companies, cloud companies, citizen networks and large enterprises to design, build and manage such cloud-native software-defined networks.

STL has innovation at its core. With intense focus on end-to-end network solutions development, we conduct fundamental research in next-generation network applications at our Centres of Excellence. STL has strong global presence with next-gen optical preform, fibre and cable manufacturing facilities in India, Italy, China and Brazil and two software-development centres.

Source: STL