Sterlite Technologies reports strong set of financial performance numbers in Q2FY16

Sterlite Technologies is a manufacturer of power transmission and telecom products company. The company operates in two business segments: power transmission and telecom product. The product portfolio of company includes optical fiber, fiber optical cables, structure data cable, OPGW cables and power conductor, telecom system and solution.

Recently, Sterlite Technologies announced outstanding Q2FY16 results, the total income of the company was sharply up by 78.38 per cent to Rs 1056.15 crore against Rs 592 crore y-o-y basis. The Company has well diversified revenue base across telecom and power business with overall 25 per cent of revenues coming from exports. Revenues from the Telecom products and Solutions business for the quarter stood at Rs. 478 crore and Revenues from the Power products and solutions business for the quarter stood at Rs. 562 crore.

The EBITDA increased by 126 per cent to Rs 132.69 crore, EBITDA margin expanded by 265 basis points to 12.56 per cent on yearly basis. The other income of the company reduced to Rs 3.66 crore against Rs 22.77 crore, decreased by 84 per cent y-o-y, finance cost increased by 55.7 per cent to Rs 66 crore compared to Rs 42.42 crore, tax expenses increased to Rs 10 crore against Rs (-0.95) crore on yearly basis. The Net Profit of Sterlite Technologies jumped by 134 per cent to Rs 29.39 crore in Q2FY16 compared to RS 12.56 crore in Q2FY15.

In this Quarter, the company completed the acquisition of Elitecore Technologies, adding distinctive capabilities in the telecom software solutions space. Sterlite announced its demerger plan in May 2015 remains on track and is expected to be completed by March 2016.

Commenting on the results, Pravin Agarwal, Vice Chairman, Sterlite Technologies Ltd., said, “We had an excellent quarter amidst a not so encouraging macro backdrop. We continue to be positive and optimistic on the developments within the company as well as in the markets we operate. Globally, the data consumption continues to grow as per our expectations and as the next generation of networks is created, we are investing in building an organization with strong capabilities built on world class manufacturing capabilities. The combination of capacities and capabilities should help to deliver our longer term vision of being the partner of choice of telecom operators as well as power utilities globally. ”

The FII holdings of Sterlite reduced by 7 basis points to 2.87 per cent, DII holdings increased by 103 basis points to 10.34 per cent as on 30th September 2015. Today Sterlite technologies is trading at Rs 91, down by 2.25 per cent.