Sterlite Technologies (STLTECH) Q4 08/09 earnings summary

Executive summary

• FY 2008-09 net revenue rose 36% YoY to Rs. 2,289 crore; EBITDA increased 18% to Rs. 238 crore, while adjusted PAT after prior-period depreciation was Rs. 90.15 crore vs. Rs. 100.72 crore.

• Higher volumes and expanded capacity supported growth despite global economic pressure; international sales reached Rs. 593 crore, 26% of net revenue.

Financial highlights

• Net revenue rose from Rs. 1,686 crore to Rs. 2,289 crore; EBITDA increased from Rs. 201 crore to Rs. 238 crore.

• Adjusted PAT after prior-period depreciation fell to Rs. 90.15 crore from Rs. 100.72 crore, mainly due to higher borrowing costs and adverse foreign-exchange movements.

• Operating cash flow was Rs. 475.54 crore; debt declined to Rs. 497 crore from Rs. 663 crore, supported by internal accruals and lower working capital.

Outlook and guidance

• FY 2009-10 expansion projects were expected to commission in H1, supporting strong revenue growth from increased capacity.

• Management expected profitable growth and strong free cash flow, citing demand for telecom and power transmission solutions, cost-reduction initiatives and technology development.

• Demand outlook in emerging markets remained positive, while liquidity constraints, cost pressures and global recession were identified as industry challenges.