Sterlite Q1 FY-25 Financials: Revenue down 20%, Company Reports Net Loss
Sterlite Technologies Limited (STL), [BSE: 532374, NSE: STLTECH], a major Indian Optical Fibre Cable (OFC) manufacturer, has announced its financial results for Q1 of FY-25.
Sterlite’s Standalone Q1 FY-25 Financial Results
During Q1 of FY-25, Sterlite Technologies earned a standalone revenue of Rs. 836 crore from operations and reported a loss of Rs. 57 crore.
Correspondingly, the company recorded loss per share of Rs. 1.18 during Q1 of FY-25.
Consolidated Quarterly Financial Figures of Sterlite Technologies
YoY Comparison of Sterlite Technologies’ Financials: Q1 FY-25 vs. Q1 FY-24
Sterlite Technologies’ Q1 revenue slumped by 19.97% YoY to Rs. 1,218 crore during FY-25 from Rs. 1,522 crore during FY-24. Further, the company reported a loss of Rs. 48 crore during Q1 of FY-25, as compared to a profit of Rs. 52 crore during Q1 of FY-24.
Sterlite Technologies’ loss per share stood at Rs. 0.99 during Q1 of FY-25 against Earnings per Share (EPS) of Rs. 1.35 during Q1 of FY-24.
Sterlite Technologies QoQ Financial Results Comparison: Q1 FY-25 vs. Q4 FY-24
On a Quarter-over-Quarter (QoQ) basis, the company’s revenue increased by 6.84% from Rs. 1,140 crore revenue clocked during Q4 of FY-24. Sterlite Technologies’ net loss decreased by 41.46% QoQ from Rs. 82 crore reported for Q4 of FY-24.
Segment-Wise Revenue Comparison of Sterlite Technologies
Optical networking business: Sterlite Technologies’ Optical networking business engages in designing and manufacturing of optical fibre, optical fibre cables and optical interconnect products.
This segment of the company brought in a revenue of Rs. 810 crore during Q1 of FY-25 against Rs. 1,112 crore during Q1 of FY-24. This shows a substantial YoY drop by 27.16% in Q1 revenue from this segment.
Global services business: Sterlite Technologies’ Global services business vertical deals with OFC network deployment and ‘end-to-end’ system integration.
The company’s revenue from Global services business segment remained flat YoY, showing a marginal growth of 0.57%, to Rs. 355 crore during Q1 of FY-25 from Rs. 353 crore in Q1 of FY-24.
STL highlighted in its Q1 FY-25 earnings call that the company has made ‘substantial progress on all key projects during this quarter (Q1 FY-25). While talking about the company’s major projects in India, Mr Ankit Agarwal, Managing Director of STL said that work undertaken by STL on the BharatNet project in Telangana is 69% complete.
Digital and technology solutions: According to STL, it’s Digital and technology solutions segment ‘enables digital transformation of telecom companies and enterprises’ by providing them with technology solutions.
Sterlite Technologies reported a revenue of Rs. 71 crore from its this segment for Q1 of FY-25. This reflects a YoY increase of 14.52% from the company’s Rs. 62 crore revenue clocked during Q1 of FY-24.
Talking about Digital and technology solutions segment of the company, Mr. Agarwal said “We are continuously working with new customers for growing our business in the US, Europe and India across technology and service verticals and observed a healthy fresh order flow during the last quarter”.
Sterlite Technologies’ Stock 3.7 % Down After Announcing Q1 FY-25 Financial Results
Sterlite Technologies’ share price decreased by 3.69% one day after the company announced its Q1 FY-25 financial results as compared to the share price on the day of result announcement.
Further, volume of share trades of the company peaked at 1,70,44,000 trades on the day of STL’s Q1 FY-25 financial result announcement against 53,35,000 trades on the next trading day.
Sterlite Technologies Reports Strong Order Book During Q1 of FY-25
During the company’s earnings call, Mr. Tushar Shroff, Chief Financial Officer of Sterlite Technologies, said “Our open order book stands at Rs.9,883 crores at the end of Q1 FY25 backed by steady order wins. Our order book is well diversified across our customer segments”.
Speaking about the orders received during Q1 of FY-25, Mr Shroff added that the company won ‘long term orders’ from UK telecom companies for optical interconnect and connectivity solutions. The company had also won orders for optical fiber cable and specialty cable products in Italy. Further mentioning about the orders in India, Mr. Shroff said that STL had won orders for fiber optic supply and deployment for a large private telecom operator in Q1 of FY-25. He further added, “We expect revenue mix to improve towards North America and Europe as the demand for optical products pick up in our global market”.
About Sterlite Technologies Limited: Sterlite Technologies Ltd. is a global leader in end-to-end data network solutions, headquartered in Pune, Maharashtra. It has offices in India, China, US, SEA, Europe, and MEA. The company is specialized in optical fiber and cables, hyper-scale network design, and deployment, and network software and offers bespoke integrated solutions.
