Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Q4 FY15 Earnings Presentation
22 slides from Sterlite Technologies's earnings presentation, May 18, 2015
Slide 1: Q4 FY15 Earnings Call
Sterlite Technologies Limited Q4 FY15 – Earnings call - 18 May 2015 www.sterlitetechnologies.com 1
Slide 2: Disclaimer
Disclaimer Certain words and statements in this communication concerning Sterlite Technologies Limited (“the Company”) and its prospects, and other statements relating to the Company’s expected financial position, business strategy, the future development of the Company’s operations and the general
Slide 3: Key Highlights FY15
Key Highlights FY15 Standalone revenue up 11% at Rs 3030 crore & EBITDA up 42% to Rs. 386 crore Strong uptrend in Telecom business ‟ robust growth accompanied by margin expansion and increase in ROCE Optical Fiber volumes higher by 28% on a yoy basis at 17.7 mfkm and cabling to fiber ratio at
Slide 4: Telecom products and solutions - Volumes
Telecom products and solutions - Volumes OF OFC (Million fkm) Total OF (Million fkm) 8.0 7.0 Quarterly Volume 6.0 4.9 5.0 4.3 4.6 3.5 3.9 4.0 3.4 2.3 1.4 2.2 3.0 1.6 1.7 1.8 2.0 2.1 2.9 2.4 2.6 1.0 1.8 1.8 - Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 OF OFC (Million fkm) Total OF (Million
Slide 5: Telecom products and solutions - Financials
Telecom products and solutions - Financials INR Crore Revenue EBITDA EBITDA % 500 467 30% 22% 26% 412 Quarterly Financials 400 24% 25% 19% 322 283 293 287 21% 20% 300 15% 200 13% 112 10% 70 76 88 100 38 55 5% Revenue , EBITDA - 0% EBITDA Margin Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 I
Slide 6: Power products and solutions - Volumes
Power products and solutions - Volumes Conductors (MT) 30,000 26,855 27,396 22,925 Quarterly Volume 20,000 18,010 14,952 10,000 8,794 - Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 Conductors (MT) 160,000 137,750 135,658 124,653 Annual Volume 120,000 94,587 77,996 80,000 40,000 - FY 10-11 F
Slide 7: Power products and solutions - Financials
Power products and solutions - Financials INR Crore Revenue EBITDA EBITDA/MT 600 495 12000 9,750 Quarterly Financials 500 461 10000 383 400 331 8000 7,333 287 300 229 6,986 6000 3,771 5,362 200 1,968 4000 100 17 18 14 19 2000 2 6 Revenue , EBITDA - 0 EBITDA /MT Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3
Slide 8: Standalone Financials
Standalone Financials Quarterly Financials Annual Financials INR Crore Revenue 895 979 INR Crore Revenue 1,000 3,354 750 680 646 592 3,750 2,727 2,726 3,030 564 2,263 500 2,500 250 1,250 - - Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY 15Q3 FY 15 Q4 FY15 FY 11 FY 12 FY 13 FY 14 FY 15 INR Crore INR Crore EBITDA 131
Slide 9: Order Book trends
Order Book trends INR Crore Total Telecom 4,900 5,000 4,712 4,711 4,404 4,000 2,600 3,000 2,521 2,400 2,129 200 2,296 345 2,188 2,000 2,400 2,500 2,416 2,582 1,000 2,176 2,216 - Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 www.sterlitetechnologies.com 9
Slide 10: Power Transmission Grid
Power Transmission Grid Revenue EBITDA INR Crore 80 74 60 60 46 41 40 16 16 18 14 20 0 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 INR Crore Equity Investment in Grid Business INR Crore Standard Chartered 2,000 1,650 1,650 1,650 1,500 450 450 450 950 1,000 500 950 1,200 1,200 1200 - Q1 FY 15 Q2 FY 15 Q3 FY
Slide 11: Balance Sheet
Balance Sheet Standalone Consolidated INR Crore Net Debt INR Crore Net Debt 1,600 6,000 1,377 1,400 4,882 5,000 1,200 1,064 4,015 4,000 1,000 873 800 3,000 2,205 600 2,000 400 1,000 200 - - FY13 FY 14 FY 15 FY13 FY 14 FY 15 www.sterlitetechnologies.com 11
Slide 12: Corporate Restructuring
Corporate Restructuring www.sterlitetechnologies.com 12
Slide 13: STL today - A combination of Businesses
STL today ‟ A combination of 2 Businesses… Telecom Business Power Business Telecom Products & Solutions Power Products Power Transmission ♦ Optical fibers & preform ♦ Power conductors ♦ 6 projects across 11 states won ♦ Fiber optic cables ♦ HV/EHV cables through competitive bidding on Business ♦ Dat
Slide 14: … with distinct and diverse needs
… with distinct and diverse needs Telecom Power Vision Company with unique abilities to provide Providing Solutions and Creating World class Power Broadband Solutions for Converged Networks transmission infrastructure Opportunity Solar and Smart Grid Business model Focus on the entire value chain fr
Slide 15: Requiring restructuring to unlock value
Requiring restructuring to unlock value Current Structure Post Restructuring Public Public Promoters Public shareholders Promoters Promoters shareholders shareholders 54.8% 45.2% 54.8% 45.2% Standard Sterlite Power STL Standard Chartered PE STL Transmission Ltd. Chartered PE (SPTL) 27.1% fully dilut
Slide 16: What it means for our shareholders
What it means for our shareholders* 5 shares in STL STL Telecom (Listed) SPTL (Unlisted equity) Option A 5 shares Value of share Rs 112.30 (based on 5:1 ratio) implying per share value of STL at Rs22.46 Scheme offers multiple options to cater to investor’s preference SPTL Listed RPS Option B • Optio
Slide 17: Winning outcome for all
Winning outcome for all Create two pure-play platforms with the flexibility to pursue growth independently The fundamental drivers for telecom remain very strong ‟ India is being built out and data consumption will grow exponentially The fundamental drivers for power remain very strong ‟ 24x7 power
Slide 18: Thank you
Thank you www.sterlitetechnologies.com 18
Slide 19: Appendix
Appendix www.sterlitetechnologies.com 19
Slide 20: Scheme highlights
Scheme highlights „ For every 5 equity shares held in STL, retain 5 shares of STL + option to receive either: – One equity share of face value Rs 2/- in SPTL; or Share – One Redeemable Preference Shares (RPS) of face value of Rs 2/- each in SPTL with a dividend of 8% of Entitlement Face value per an
Slide 21: Options for Public Shareholders
Options for Public Shareholders Resident shareholders of STL Foreign Portfolio Investors (FPI)* „ Options: „ Options: – Receive equity shares of SPTL , or If RBI approval received – Receive Redeemable Preference Shares (RPS) of SPTL and seek cash exit – Receive unlisted equity shares of SPTL which s
Slide 22: Proforma financials
Proforma financials Standalone FY 2014-15 (Carve out) Consolidated FY 2014-15 (Carve out) Tel Power Tel Power Revenue 1,530 1,500 Revenue 1,619 1,478 EBIDTA 345 41 EBIDTA 345 167 EBITDA margin 23% 3% EBITDA margin 21% 11% Depreciation 76 32 Depreciation 96 89 Interest 53 126 Interest 75 252 Cash Pro
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