Sterlite Technologies (STLTECH) Q4 13/14 earnings summary

Executive summary

• FY14 standalone revenue fell 19% to ₹2,726 crore, while EBITDA rose 4% to ₹271 crore and PAT increased to ₹50 crore; improved profitability reflected better-margin orders and cost controls.

• Consolidated revenue declined 17% to ₹2,564 crore; higher project-related interest and depreciation contributed to a ₹35.5 crore consolidated net loss.

• FY15 began with a ₹2,550 crore order book; strategy emphasized international expansion, global customer accounts and execution of transmission and broadband projects.

Financial highlights

• Standalone net revenue was ₹2,726 crore versus ₹3,354 crore in FY13; EBITDA was ₹271 crore versus ₹260 crore, and PAT was ₹50 crore versus ₹47 crore.

• Standalone EBIT was ₹168 crore versus ₹174 crore; finance costs declined to ₹95 crore from ₹106 crore, while depreciation rose to ₹103 crore from ₹86 crore.

• Consolidated revenue was ₹2,564 crore versus ₹3,092 crore; EBITDA increased to ₹298 crore from ₹238 crore, but PBT was a ₹15 crore loss versus ₹43 crore profit.

• Consolidated finance costs rose to ₹180 crore from ₹106 crore; depreciation and amortisation increased to ₹133 crore from ₹89 crore, contributing to a ₹35.5 crore net loss versus ₹25.2 crore profit.

Outlook and guidance

• FY15 opening order book stood at ₹2,550 crore; further project wins and new geographies were central to plans to reduce reliance on the domestic market.

• FY15 plans included progressive commissioning of ENICL, BDTCL and JTCL lines and substations; financial closure for RAPP and ERRS-7 was expected in the next financial year.

• Growth opportunities cited included 3G/4G rollouts, NOFN, defense networks, FTTH, transmission corridors and reconductoring; management noted signs of demand revival in domestic power transmission.

• Financial statements showed ₹574 crore of consolidated capital commitments net of advances; further financing and project execution remained important to delivery plans.