Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Q1 FY17 Earnings Presentation
22 slides from Sterlite Technologies's earnings presentation, Jul 25, 2016
Slide 1: Earnings Presentation: Q1 FY17
Earnings Presentation: Q1 FY17 July 25, 2016
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: Contents
Contents Company Overview 4 Opportunity Landscape 8 Q1 FY17 Business Updates 12 Strategic Direction 17 3
Slide 4: Company Overview
(€ Sterlite Tech Company Overview
Slide 5: Sterlite Tech: Focused on Data Networks
Sterlite Tech: Focused on Data Networks Rural Defense/ International Telco’s Smart Cities Broadband Other Utilities markets Attractive • 4 G Backhaul • Infra to • End to end • Integrated • Exponential Applications rollout Solutions for growth in Data Opportunities Network upgrade Focused Strategy St
Slide 6: End to End Integrated solutions
What Sterlite Tech offers Specialty Fibre Products Intrusion Proof Cables Bend Insensitive Optical Fibre Customized Cables For Varied Applications End to End Integrated solutions Raw materials Preform Optic fiber OF cable Full control over the entire value chain driven by capacities and capabilities
Slide 7: Sterlite Tech – Progressive Transformation
Sterlite Tech – Progressive Transformation Added Smart City Suite Emerges as pure play-end to end Acquired EliteCore TELECOM Telecom solutions company BUSINESS Forayed into Services NFS order win Integrated Business Model Integrated Global Player in Products and Scaled up capacity JVs in China & Bra
Slide 8: Opportunity Landscape
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Slide 9: Opportunity landscape
Opportunity landscape World optical cable Global IP traffic will increase installations in H1 2016 with a CAGR of 53% from 2015 exceeded 200 million fibre-km to 2020 Data Penetration in India to Network operators in China drive investments of ~70 Bn installed 12% more fibre in H1 USD in digital infr
Slide 10: System integration opportunities FY'17
System integration opportunities FY’17 >16,000 >5,000 SI Projects >10,000 >1,000 Under Execution Bid-Participated- Pipeline:FY17 Total Result Awaited India market envisaged to provide continued large SI opportunities of similar size in next 3-4 years Values in INR Cr. 10
Slide 11: Key business highlights
Key business highlights • Fiber capacity to be ramped up to 25 Mn by mid of FY17 • Accelerating 30 Mn Capacity expansion (to mid of next year) in anticipation of global demand Products • Major inroad into a Tier-1 operator globally to add to our global footprint • Cable uptake to start happening fro
Slide 12: Q1 FY17 Consolidated Financial Update
Q1 FY17 Consolidated Financial Update Q1FY17 & Q1FY16 consolidated financial numbers are in Ind AS, while previous quarter consolidated financial numbers are in Indian GAAP From Q2FY17 onwards all historical consolidated Financial performance will be reflected in Ind AS 12
Slide 13: Financial highlights
Financial highlights • Revenue Growth remains strong at 22% on a YoY basis • EBITDA growth at 21% on YoY basis Performance • Service & software business accounted for ~25% revenues in Q1FY17 • ROCE of the business stands at 19% with Net Debt of Rs 1,039 crores • Record date for Demerger concludes, S
Slide 14: Quarterly financial performance – Consolidated Telecom business
Quarterly financial performance – Consolidated Telecom business +22% +21% 572 608 134 565 124 518 114 115 463 102 Q1 FY16* Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17* Q1 FY16* Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17* Revenue EBITDA +30% 52 37 40 Revenue profile reflect 22% growth on YoY basis 31 33 EBITDA grew by
Slide 15: Quarterly financial performance: Products
Quarterly financial performance : Products +21% -14% 5.4 5.5 5.5 1.9 2.0 4.5 4.7 1.6 1.6 1.3 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 OF Volume(MnFkm) OFC (Mn Fkm) Quarterly volumes for OF have consistently crossed the 5.5 million mark for the last 2 quarters
Slide 16: Quarterly Consolidated Revenue profile – Telecom business
Quarterly Consolidated Revenue profile – Telecom business Sterlite Tech -Revenue Profile International Market Revenue Profile Others South East 2% Asia International 8% Market 27% Europe Middle East 13% 33% Domestic China Market 44% 73% Revenues from International Market :27% China & Europe are our
Slide 17: Strategic Direction
(€ Sterlite Tech Strategic Direction
Slide 18: Strategic Direction
Strategic Direction E) Consistent Returns to the A) Market focused approach to Shareholders: drive sustained profitable 30% of PAT as dividend growth: End to end solutions & services Strategic Direction D) Defined principles B) Focus on Research & for Inorganic Growth: Development: Increasing Capabi
Slide 19: Appendix
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Slide 20: 5 year journey - Telecom business: Consolidated P&L
5 year journey - Telecom business : Consolidated P&L +28% 2,161 465 +36% 1,619 345 1,096 1,148 799 151 181 137 FY 12 FY 13 FY 14 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16 Revenue EBITDA 18% 18% +40% 334 249 8% 7% 8% 88 90 94 FY 12 FY 13 FY 14 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16 EBIT ROCE Con
Slide 21: Consolidated Financials: Q1FY16 Vs Q1FY17
Consolidated Financials: Q1FY16 Vs Q1FY17 Q1 FY16 Q1 FY17 P&L (Rs. Cr.) Ind AS Ind AS Revenue 463 565 EBIDTA 102 124 EBITDA % 22% 22% Depreciation 24 35 EBIT 78 89 EBIT % 17% 16% Interest 28 32 PBT 50 57 Tax 19 13 PAT (After minority Interest) 31 40 21
Slide 22: Thank You
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