STL delivers strong operating profitability, continues customer momentum in Q1FY24

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MUMBAI, India, July 27, 2023 /PRNewswire/ — STL [NSE: STLTECH], a leading Optical and Digital solutions company, today announced its financial results* for the quarter ended 30th June 2023. STL reported INR 1,522 Cr in revenues and a robust open order book of INR 10,938 Cr across its three business units- Optical Networking, Global Services, and Digital.

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Amidst global headwinds, STL delivered a strong 42% YoY EBITDA growth on the back of a relentless focus on operational efficiencies, while its PAT surged by an impressive 156%. The company also delivered operational profitability with a steady EBITDA percentage of 15.4% in the current quarter.

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Despite a 3.4% decline in the Global OFC demand in H1 CY2023, STL maintained its 11% global (ex-China) OFC market share, reflective of its reputation as a preferred partner for its customers. The company continued to show momentum in its key markets and businesses while keeping customer-centricity and profitability at the core.

Optical Networking Business exhibits resilient performance and maintains OFC market share amidst headwinds

Optical Networking Business continued its focus on customer-centricity, product innovation, and operational efficiencies to deliver an EBITDA of INR 246 Cr (~22%) in the current quarter, up by 53% on a YoY basis. The business intensified its focus on EMEA, APAC, and India, to maximise growth potential across global markets.

Global Services Business gathers momentum with 82% QoQ growth in orders 

Global Services Business won strategic projects across its portfolio in Q1 FY24 with orders worth ~INR 470 Cr. Notable wins were with a private telecom player in India for fibre rollouts and a data centre build and manage project with a leading public sector enterprise. The focus remains on value-added services to enhance the margin profile and optimise fund involvement.

STL Digital picks up pace with 20+ prestigious customers

Last quarter STL announced its foray into the multi-trillion dollar IT services industry with STL Digital. This quarter,  STL Digital achieved a substantial order inflow of ~INR 350 Cr, reporting an open order book in excess of INR 900 Cr. With 50+ leaders and 950+ consultants, STL Digital is well-prepared to deliver top-notch solutions to its customers.

In a boost to STL’s Net Zero by 2030 progress, Morgan Stanley Capital International (MSCI) significantly upgraded STL’s ESG rating from BBB to A, validating STL’s commitment to sustainability and responsible governance. Continuing its on-ground efforts zealously, STL reported that it has diverted over 225,000 metric tonnes of waste, reduced 23,000+ metric tonnes of tCO2e, and conserved 675,000+ cubic meters of water in the past five years.

Commenting on the company’s quarter performance, Ankit Agarwal, Managing Director, STL, said, “Amidst global challenges, we continue to drive our market presence and pursue our ambition to be among the world’s top 3 optical companies. We are focused on long-term, sustainable growth and aim to deliver a 7% to 9% revenue increase this financial year while targeting a net debt to EBITDA ratio of less than 2.5 to further strengthen our financial position. With a proactive approach and an exceptional team, we embrace the future with optimism and stay agile to seize new opportunities in the dynamic market landscape.”

Financial highlights

Financials*

INR Cr

Q1FY23

Q1FY24

YoY Growth

Revenue

1,487

1,522

2 %

EBITDA

165

235

42 %

PAT

18

46

156 %

*All financials are from continued operations

About STL – Sterlite Technologies Ltd:

STL is a leading global optical and digital solutions company providing advanced offerings to build 5G, Rural, FTTx, Enterprise, and Data Centre networks. Read more, Contact us, stl.tech | Twitter | LinkedIn| YouTube

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