Sterlite Technologies Limited: Value Pick Stock May 2020, Update
Update
“Divestment of stake in Impact Data Solutions Limited (UK)”
Sterlite Technologies Limited has informed the exchange (on 4th October 2022) that “kindly refer to our previous communication dated September 26, 2022, regarding the Company entering into definitive documents to sell its stake (through its wholly-owned subsidiary) in Impact Data Solutions Limited (IDS UK) to Hexatronic Group AB (publ)”
“We now wish to inform you that the divestment of the Company’s stake in Impact Data Solutions Limited (IDS UK) has been completed on October 4, 2022”
Share of Sterlite Technologies Ltd closed at INR 181 (UP 9.15%) today when the market closed with a volume of 89,03,295 shares on the NSE.
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25 July 2022
Update
Q1 FY23 Earnings
Revenues
Sterlite Technologies Ltd (STL) – one of the industry’s leading integrators of digital networks today reported its financial results for the first quarter ended June 30, 2022.
The Consolidated revenue of the company stood at INR 1580 crore for the April – June 2022 quarter as against INR 1613 crore for the January – March 2022 quarter, a fall of 2.05 percent Q-O-Q basis. However, the year-on-year revenue of the company grew by 20 percent (revenue of INR 1316 crore for the period ended 30 June 2021)
Total Expenses of the Company are as follows –
INR 1461 Cr as on 30 June 2022,
INR 1077 Cr as on 30 June 2021,
INR 1491 Cr as on 31 March 2022
EBITDA
The EBITDA of the company stood at INR 119 Cr for Q1 FY23 as against INR 122 Cr for the January – March 2022 quarter, while the same was INR 238 Cr for the April – June 2021 period.
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PAT
STL registered a net loss of INR 23 Cr for the first quarter ended 30 June 2022 (because of higher material costs as well as higher employee benefits and other expenses) which was a net profit of INR 107 Cr a period one year ago. However, there was a net loss of INR 26 for the quarter ended 31 March 2021.
STL Plans For Growth In The Coming Years –
Increased focus on Optical Business: The Company has a fibre capacity of 50 mn fkm and will increase the cable capacity to 42 mn fkm in FY23. It made great strides in the Optical Interconnect business providing fibre cable plus interconnect accessories as a solution to key customers in the US and Europe. It is also starting its world-class manufacturing facility for optical fibre cables in the US, which is expected to go live in Q3 FY23.
Expanded Global Services: STL is working with leading telcos across India and the UK for their 5G and FTTH deployments. In the UK, STL has partnered with leading telcos and alternate network providers and plans to ramp up execution and scale to enable service providers’ plans to connect over 60 mn homes by 2030.
MD Said –
Commenting on the results, Ankit Agarwal, MD of the company said “Our global footprint, technology-led solutions, and effective supply chain management continue to be major contributors to our growth.
With increased focus on efficiency and prudent capital management, we expect to sustain this positive momentum. As ubiquitous networks are built in this decade, we are fortunate to play a significant role in transforming billions of lives through digital networks.”
Daily Chart –
sterlite technologies share price ends at INR 142.20, down 3.76% on the NSE with a volume of 16,98,851 shares.
sterlite technologies is a value pick stock of Finblab (has given 3x returns from the recommended price of INR 87, currently 2x returns).
Final Comment: The Company has posted a weak set of numbers Q-O-Q and Y-O-Y basis. Keeping future industry growth in mind, Finblab maintains a positive view on the company.
>>> Also Read – IMPORTANT Q1 RESULTS FOR THIS WEEK
4 MAY 2020
With expertise ranging from (1) optical fibre and cables, (2) hyper-scale network design, and (3) deployment and network software, Sterlite Technologies Limited (STL) is the industry-leading integrated solutions provider for global data networks.
The company has expanded its portfolio to manufacture and supply Power Transmission Conductors, Aluminum & Alloy Rods, Copper Telecom Cables, Structured Data Cables, and Customer Premise Equipment and Cable Accessories.
Sterlite Technologies Limited: History
Sterlite Technologies Limited (formerly known as Sterlite Tech) formed in the year 1988 is a digital technology company with offices in India, China, Europe, the US, SEA, and MEA.
Sterlite Technologies: Business
Sterlite Technologies Limited`s business activities involve the manufacturing of telecommunication cables.
STL is specialized in optical fiber and cables, hyper-scale network design, and deployment and network software and offers bespoke integrated solutions for global data networks of CSPs, Telcos, and OTTs.
With core capabilities in optical connectivity, network and system integration, and virtualized access solutions, STL is the industry’s leading end-to-end solutions provider for global data networks.
The Company has also united with global telecom companies, citizen networks, cloud companies, and large enterprises to design, build, and manage such as cloud-native software-defined network.
STL has a solid world-wide presence with next-gen optical preform, fibre, and cable manufacturing facilities in India, China, Italy, and Brazil and 2 software-development centres.
The Company has the first optical fiber cable plant in India to receive “zero waste” to landfill certification.
The Company’s products cater to various sectors such as aviation, defense, oil and gas, railway, roadways, telecom, power, and broadband. The company also engaged in the business of Telecom, Power Product and Solutions.
Sterlite Technologies: Geographical Presence
The Company has 20 plus sales and marketing offices, 6 manufacturing units and state of the art development centres across the world as of March 31, 2018.
The Company has a major presence in a country like India, Brazil, United States, China, Italy, the Middle East, and Europe.
Listed On
The shares of Sterlite Technologies Limited are presently listed at Bombay Stock Exchange (BSE); CODE 532374 and National Stock Exchange (NSE) as STRTECH
Stock Info: Sterlite Technologies
Share Holding Pattern
Financials: Sterlite Technologies
Conclusion
Sterlite Technologies Limited (STL) is an industry-leading integrator of data networks.
Promoters of the company are having more than 53 per cent stake with 0 per cent pledge shares.
Along with this, some of the top institutions like Life Insurance Corporation of India, DSP SMALL CAP FUND, ADITYA BIRLA SUN LIFE DIGITAL INDIA FUND, and Reliance Etf Nifty Midcap 150 ETF is having more than 1 per cent stake in the company.
Recently, the board of the company has approved the buyback of fully paid-up equity shares of the face value of INR 2 each for a total amount not exceeding INR 145 Cr.
The government consistently focuses on the development of smart cities across the country which can help a company like STL.
On the technical front, Sterlite Technologies Limited is trading well above its 20 EMA and 50 EMA on the daily chart.
Keeping the above-listed factors in mind, Sterlite Technologies Ltd looks good at INR 87. Finblab recommends investing in the stock in a staggered manner for medium to long term.
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