Sterlite Technologies (STLTECH) Q2 24/25 earnings summary

Executive summary

• Strategic focus remains on growing optical fiber cable market share, expanding data center and enterprise segments, and driving technology and cost leadership in optical networking.

• Q2 FY25 revenue was INR 1,413 crores, with sequential growth but lower year-over-year due to reduced OFC volumes.

• H1 FY25 revenue reached INR 2,631 crores, EBITDA at INR 244 crores, and after-tax loss at INR 60 crores.

• STL Digital is prioritizing profitability and scaling through targeted investments.

• ESG initiatives have led to over 100 awards, with significant progress in waste reduction, emissions, and water recycling.

Financial highlights

• Q2 FY25 consolidated revenue was INR 1,413 crores; EBITDA was INR 151 crores (10.7% margin); after-tax loss was INR 13 crores.

• H1 FY25 revenue was INR 2,631 crores, EBITDA at INR 244 crores, and after-tax loss at INR 60 crores.

• Net debt stands at INR 2,169 crores, with a debt-to-equity ratio of 0.74%.

• Open order book at Q2 FY25 was INR 8,630 crores, with 60% from telcos.

• Cash and cash equivalents increased to INR 410 crores as of September 30, 2024.

Outlook and guidance

• Medium-term global OFC demand projected to grow at 4.3% CAGR to 2028, with ex-China growth at 7%.

• North America and India expected to outpace global growth, driven by 5G, FTTx, and data center expansion.

• BEAD and BharatNet projects to drive future demand, with BEAD volumes expected to peak in 2026-2027.

• Q3 expected to be seasonally slow, with order uptick anticipated in Q4 as budgets are released.

• Demerger of Global Services Business is pending final NCLT approval, with all shareholder and creditor approvals obtained.