Sterlite Technologies (STLTECH) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue was INR 1,218 crore, up sequentially but down year-over-year due to lower OFC volumes.

• EBITDA margin improved to 7.6%, with EBITDA at INR 93 crore; net loss narrowed to INR 47 crore from INR 83 crore in Q4 FY24.

• Strategic focus on regaining optical market share, expanding data center products, and digital business growth.

• Large order wins in UK, Italy, and India, with a diversified revenue mix and open order book at INR 9,883 crore.

• Completed QIP, raising capital and reducing promoter shareholding from 53.98% to 44.18%.

Financial highlights

• Q1 FY25 consolidated revenue was INR 1,218 crore, up from INR 1,140 crore in Q4 FY24.

• EBITDA stood at INR 93 crore, margin at 7.6%, up from 5.9% in Q4 FY24.

• Net loss after tax was INR 47 crore, improved from INR 83 crore loss in Q4 FY24.

• Net debt reduced by INR 769 crore from FY24; debt-to-equity ratio improved to 0.68.

• Open order book at quarter-end was INR 9,883 crore, diversified across segments.

Outlook and guidance

• Demand normalization expected in 1-2 quarters as US and Europe inventory declines.

• Targeting 8%-10% steady-state EBITDA margin in services and 5%-7% annual growth in digital business.

• Aims for 25% of revenue from data center products in the medium term.

• Confident of returning to 20%+ EBITDA margins as factory utilization improves.

• Management expects no material impact from QIP-related promoter shareholding change.