Sterlite Technologies (STLTECH) Q4 10/11 earnings summary

Executive summary

• FY11 net revenue fell 7% YoY to ₹2,263 crore; EBITDA declined to ₹282 crore and PAT to ₹141 crore, while core power conductor, optical fiber and cable sales volumes reached historical highs.

• International sales rose 26% YoY to ₹700 crore, equal to 31% of net revenue; the March 31, 2011 order book was ~₹2,200 crore, with most scheduled for FY12 execution.

Financial highlights

• Net revenue ₹2,263 crore vs ₹2,432 crore in FY10; EBITDA ₹282 crore vs ₹404 crore, EBIT ₹226 crore vs ₹356 crore, and PAT ₹141 crore vs ₹246 crore.

• Diluted EPS was ₹3.72 vs ₹7.34; the Board recommended a 25% dividend, or ₹0.50 per ₹2 share, subject to shareholder approval.

• Interest and finance charges increased to ₹47 crore from ₹38 crore, reflecting higher working capital and interest rates; depreciation rose to ₹56 crore from ₹48 crore after capacity additions were capitalised.

Outlook and guidance

• The ~₹2,200 crore order book was expected to be substantially executed in FY12, supported by orders from utilities, state transmission companies, electricity boards and telecom service providers.

• Optical fiber capacity expansion to 20 million km was on track for full operation during FY12; ongoing expansion projects were expected to be commissioned by the end of FY12.

• Power conductor capacity of 160,000 MT was achieved; broader plans described capacity enhancement to 200,000 MT, alongside optical fiber capacity expansion to 20 million km.