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Sterlite Technologies Q3 FY-24 Financials: Revenue Slumps 30%, Company Reports Loss

Sterlite Technologies Limited, STL Logo

Sterlite Technologies Limited (STL), [BSE: 532374, NSE: STRTECH], an Indian provider of data network solutions and manufacturer of Optical fibre cables has announced its Q3 FY-24 financial results.

Sterlite Technologies’ Standalone Q3 FY-24 Financial Figures

Sterlite Technologies reported a standalone revenue of Rs. 867 crore from operations and a net loss of Rs. 75 crore in Q3 of FY-24.

Correspondingly, the company recorded a loss per share of Rs. 1.88 in Q3 of FY-24 [EPS of (-)1.88].

Sterlite Tech’s Consolidated Q3 FY-24 Financial Performance

Comparison of Sterlite Technologies Revenue: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

YoY Comparison of Sterlite’s Financial Figures: Q3 FY-24 vs. Q3 FY-23

Sterlite Technologies earned a consolidated revenue of Rs. 1,322 crore from operations during Q3 FY-24, representing a decrease of 29.79% on Year-over-Year (YoY) basis. The company had clocked a revenue of Rs. 1,883 crore in Q3 of FY-23.

Comparison of Sterlite Technologies PAT: Q3 FY23 vs. Q3 FY24 vs. Q2 FY24

In Q3 FY-24, the company reported a net loss of Rs. 59 crore against Profit After Tax (PAT) of Rs. 47 crore during Q3 FY-23.

Per share, the company suffered a loss of Rs. 1.43 during Q3 FY-24 while STL had reported Earnings Per Share (EPS) of Rs. 1.28 during Q3 FY-23.

QoQ Comparison of STL’s Financial Results: Q3 FY-24 vs. Q2 FY-24

On a Quarter-over-Quarter (QoQ) basis, the company recorded a decrease of 11.51% in its revenue from operations which stood at Rs. 1,494 crore during Q2 FY-24.

Further, the company’s PAT stood at Rs. 32 crore during Q2 FY24 against a loss of 59 Cr reported for Q3 FY24.

STL’s Share Price Down 4% After Announcing Q3 FY-24 Results

Sterlite Technologies’ share price dropped by 4.20% after the company announced its Q3 FY-24 financials as compared to STL’s share price a day before posting its results.

Further volume of trades of company’s shares peaked at 42,30,000 on the day of announcement of Q3 FY-24 financials from 8,04,000 trades one day before the company announced its results. This represents an increase to over 5 times in volume of share trades.

Economic Factors Lead to Decrease in OFC Demand – Sterlite Tech

Sterlite-technologies
Opticale Fibre Cable

As per STL’s press release for its Q3 of FY-24 results, within the optical networking industry, telecom and broadband service providers are re-evaluating their order planning. This adjustment is primarily driven by economic factors such as increased cost of capital, inflationary pressures, and existing inventory levels, leading to a temporary decrease in demand for optical fiber cables.

Mr. Ankit Agarwal, Managing Director of STL, added, “While this downturn is temporary, the cost base and capabilities that we have built around product design, quality, manufacturing presence, and sustainability will reap benefits far into the future”.

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.