Sterlite Technologies (STLTECH) Q4 16/17 earnings summary

Executive summary

• FY17 delivered 14% revenue growth, 31% PAT growth and 75% export growth; the ₹3,018 crore order book supported visibility across business lines.

• Strategy focused on integrating optical products, network and system integration services, and telecom software to design, build and manage broadband networks.

Financial highlights

• Consolidated revenue was ₹2,593.56 crore versus ₹2,274.86 crore in FY16; EBITDA was ₹530.47 crore versus ₹463.06 crore.

• Consolidated PAT was ₹217.71 crore versus ₹159.79 crore; PAT attributable to owners was ₹201.38 crore versus ₹153.71 crore.

• Consolidated diluted EPS rose to ₹4.98 from ₹3.82; exports increased 75% to ₹957 crore, or 37% of revenue versus 24% in FY16.

• Adjusted for the ₹32 crore one-time tax gain related to the proposed Speedon demerger, FY17 tax expense was ₹72 crore and adjusted effective tax rate was 28%.

Outlook and guidance

• Optical fibre capacity was on track to reach 30 million fkm in FY18; the next expansion phase targets 50 million fkm through phased greenfield investment.

• Planned capex for the 50 million fkm expansion was ₹1,000–1,200 crore; the ₹3,018 crore order book provided growth visibility.

• Management cited a strong outlook as fibre demand rises with network densification, 5G, rural broadband and Smart City deployments.