Sterlite Technologies (STLTECH) Q4 15/16 earnings summary

Executive summary

• FY16 delivered strong telecom-only growth: consolidated revenue ₹2,161 crore, EBITDA ₹465 crore and PAT ₹151 crore, up 33%, 35% and 27%, respectively, YoY versus adjusted FY15 pro forma results.

• The April 1, 2015 power-business demerger sharpened the focus on telecom; Elitecore’s software capabilities expanded the offering across products, services and software.

Financial highlights

• Consolidated net revenue was ₹2,161 crore in FY16 versus adjusted pro forma ₹1,619 crore in FY15; EBITDA was ₹465 crore versus ₹345 crore and PAT ₹151 crore versus ₹119 crore.

• Consolidated EBITDA margin was 21.5% versus 21.3% on adjusted pro forma FY15; net profit margin was 7% versus 7%, and EPS ₹3.75 versus ₹2.99, up 26%.

• Exports rose 17% to ₹547 crore from adjusted pro forma ₹466 crore; exports were 25% of revenue versus 29% in FY15.

• Standalone reported net revenue was ₹2,036 crore, EBITDA ₹446 crore and PAT ₹181 crore; prior-year figures are not comparable after the demerger and Elitecore merger.

Outlook and guidance

• Telecom infrastructure investment in India was projected at ₹2 lakh crore over five years; public-sector initiatives were estimated to represent over ₹100,000 crore of cumulative opportunity through 2019.

• Augmented optical fibre capacity reached 22 million fkm; cable capacity doubled to 15 million cabled fkm, supporting expected demand from network expansion and customer growth.

• Optical fibre operations were running at full capacity; international optical fibre and cable markets were expected to see single-digit growth.

• Management targeted a potential 10–15% share of ICT capex spend through integrated products, services and software, compared with 1–2% as a products-only business.