Sterlite Technologies (STLTECH) Q4 11/12 earnings summary

Executive summary

• FY12 net revenue rose 21% to ₹2,727 crore, while EBITDA fell 21% to ₹223 crore and net profit declined 69% to ₹44 crore.

• Volume growth, new markets and products strengthened the operating base, but input-cost increases, lower realizations and higher interest expense pressured earnings.

Financial highlights

• Standalone revenue from operations, net of excise, was ₹2,727.47 crore versus ₹2,262.55 crore in FY11; EBITDA was ₹223.23 crore versus ₹281.61 crore.

• Standalone PAT was ₹43.84 crore versus ₹140.53 crore; diluted EPS fell to ₹1.11 from ₹3.72.

• Exports increased 15% to ₹803 crore, representing 30% of revenue versus 31% in FY11; telecom exports rose 44% to ₹531 crore, while power exports fell 18% to ₹271 crore.

• Consolidated net revenue was ₹2,621.75 crore, EBITDA ₹215.73 crore and profit after minority interest ₹39.64 crore; diluted EPS was ₹1.00.

Outlook and guidance

• FY13 priorities: volume growth from organic expansion, innovation-led product additions, and expansion into new geographies and customer accounts.

• Optical fiber capacity expansion of 20 million km was on schedule; the China JV facility was expected to begin commercial production in H2 FY13.

• Three BOOM transmission projects, with combined investment of ~₹4,000 crore, were expected to generate partial revenue from FY14 and full revenue from FY15.

• Ongoing expansion projects were expected to be largely completed and commissioned by FY13-end.