Sterlite Technologies Limited (STL) [BSE: 532374, NSE: STRTECH], a major Indian manufacturer of Optical Fibre Cables (OFCs) and a Vedanta company, has announced its financial results for Q2 of the 2022-23 financial year.
Sterlite Tech’s Standalone Financials for Q2 of FY23
STL reported Rs. 1,336 crore as its standalone revenue from operations during the quarter ended 30th September 2022.
The company reported a standalone net loss of Rs. 6 crore for this period.
STL’s Consolidated Financial Performance
YoY Comparison of STL’s Financial Results: Q2 FY-23 vs. Q2 FY-22
Sterlite Technologies clocked a consolidated revenue of Rs. 1,768 crore from its operations during the second quarter of FY-23, as against Rs. 1,508 crore for Q2 of the previous fiscal. This reflects a steady Year-over-Year (YoY) growth of 17.24%.
The company earned a consolidated net profit of Rs. 40 crore in the quarter ended 30th September 2022, as compared to a net profit of Rs. 105 crore in the corresponding period of the FY22. Therefore, STL’s consolidated profits have slumped by 61.90% on a YoY basis.
QoQ Comparison of Sterlite Tech’s Financials: Q2 FY-23 vs. Q1 FY-23
On a Quarter-over-Quarter (QoQ) basis, STL’s consolidated revenue from operations recorded an increase of 12.25% from Rs. 1,575 crore clocked during Q1 of FY-23.
Sterlite Technologies had reported a net loss of Rs. 23 crore in Q1 of the ongoing fiscal. Therefore, there has been an increase of 273.91% in the company’s net profit.
STL had been reporting net losses since Q3 of FY22. The quarter ended 30th September 2022 marks the first instance after three consequtive quarters when the company has reported a consolidated net profit.
Summary of Sterlite Tech’s Q2 FY23 Financial Performance
Commenting on the company’s financial performance, Mr. Ankit Agarwal, Managing Director, STL said, “This quarter saw one of the highest order intakes of about 3,200 crore. We believe that our focused efforts will create stakeholder value and bring us closer to being amongst the top 3 optical players globally.”
STL’s stated that its order book has been the highest since the past 3.5 years, standing at Rs. 11,697 crore as of 30th September 2022.
For the half year ended 30th September 2022, the company reported a consolidated revenue of Rs. 3,343 crore, out of which 27% came from India, and the rest was attributed to STL’s overseas operations.
Sterlite Tech stated that it holds about 11% of the global Optical Fibre Cables (OFC) market share (excluding China), and about 14% market share in the United States. The company’s major global orders include one from Australia’s Vocus and another from a telecom service provider in the USA.
STL to Pull out of Non-Core Business, Focus on OFC to Enhance Profitability
During an interview with The Economic Times, Mr. Ankit Agarwal said, “We have actually successfully built some of the products such as macro radios and on the WiFi front. So our conversations are going on with various other partners who are in the wireless so that some of our assets or IP (Intellectual Property) can be moved on to them.”
He further added that the company will be dialling down its wireless business, in which it has been investing consistently. This would improve the company’s profitability by around Rs. 30-40 crores by Q4 of FY-23. Mr. Agarwal said that most divestment decisions with regard to STL’s non-OFC business will be taken in Q3 of FY-23.
About Sterlite Technologies Ltd.: Pune-headquartered Sterlite Technologies Ltd. is an Indian technology company, with a presence in over 150 countries. Sterlite Tech has active manufacturing facilities in India, Italy, China, Brazil and the US.