Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Q3 FY18 Earnings Presentation
28 slides from Sterlite Technologies's earnings presentation, Jan 17, 2018
Slide 1: Q3 FY18 Earnings Presentation
Q3 FY18 Earnings Presentation Jan 17, 2018 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: Industry Trends and Outlook
Industry Trends and Outlook 3
Slide 4: Data Consumption Trends – Roadmap to 2021
Data Consumption Trends – Roadmap to 2021 58% 61 GB 3.5 of the Population will be of the traffic per month, networked devices and using the Internet per user connection per person up from 44% in 2016 up from 24 GB in 2016 up from 2.3 in 2016 80% 53 Mbps 20 Mbps of all Internet traffic will average b
Slide 5: Platforms Driving Data Consumption Trends
Platforms Driving Data Consumption Trends Smart Energy Cognitive Analytics Community- Centric Open Collaboration Smart Smart Mobility Water Embedded Cloud sensors computing Sharing Economy Enterprise App Stores Smart Public Smart Services Buildings Product Smart Pervasive Wearables On-Demand Smart D
Slide 6: Growth Driver 1: 5G
Growth Driver 1: 5G $12 Trillion 22 Million Estimated value of 5G-related goods and Jobs worldwide across the 5G value chain services Enhanced Mission- Massive mobile critical Internet of broadband services Things Extreme speed and Secure, reliable, Extreme density, capacity and responsive low power
Slide 7: Growth Driver 2: The Future of the Enterprise
Growth Driver 2: The Future of the Enterprise New Models of Work The Evolution of Apps at Work New Devices Community-Centric Enterprise App Wearables Open Collaboration Stores Unified Information Non-Hierarchical Streams Apps + Data Internet of Things Organizations Dashboards Borderless Dynamic On-D
Slide 8: Growth Driver 3: Smart Cities
Growth Driver 3: Smart Cities Smart Public Smart Energy Smart Mobility Smart Water Smart Buildings Smart Data Center Smart Integration Services Smart grids EV Charging Plant & Network Public Safety Multiple Disparate Efficient Data Centers City-wide Platforms Infrastructure & Energy Performance Vi
Slide 9: Growth Driver 4: IoT is disrupting the physical world
Growth Driver 4: IoT is disrupting the physical world Cognitive Analytics Boosting Operational Embedded Performance and lowering costs Cloud sensors computing Driving engagement and customer experience Creating new products and business models Advancing environmental leadership Product Lifecycle Per
Slide 10: Optical Fiber – Bedrock of digital integration
Optical Fiber – Bedrock of digital integration 10
Slide 11: Optical Fiber is the most preferred medium for data transmission
Optical Fiber is the most preferred medium for data transmission The technology Advantages of optical fiber Fiber optical cables surrounding fiber use light-bursts optic has been around since the 1) Greater bandwidth and speed instead of Electricity Fiber Optics have a 1870’s 2) Longer distances Fib
Slide 12: More Data, More Fibre
Growth in data consumption is closely linked with growth in Optical Fibre consumption More More Data Fibre 500 1600 450 1400 400 1200 350 300 1000 250 CAGR: 17% 800 200 CAGR: 36% 600 Global Fiber Global Annual 150 IP traffic Consumption 400 (mfkm) 100 (Exabytes) 50 200 0 0 CY06 CY07 CY08 CY09 CY10 C
Slide 13: Global Demand for Optical Fiber Continues to Reflect Strong Annual Growth
Global Demand for Optical Fiber Continues to Reflect Strong Annual Growth 3,549 Optical Fiber Demand ( Mn fkm ) 481 429 58 North America Europe 51 48 382 China 38 43 India Others +17% 314 40 33 263 246 40 28 218 32 277 32 243 188 32 29 216 173 24 30 139 24 156 25 119 20 132 26 121 96 24 24 99 75 80
Slide 14: Our Strategic Positioning
Our Strategic Positioning 14
Slide 15: Uniquely Positioned to Deliver Smarter Networks
Uniquely Positioned to Deliver Smarter Networks Silicon Optical Fibre System Integration Glass Preform Fiber Cables Software SILICON The only company in the world to have To SOFTWARE integrated silicon to software capability Translating to Industry Best Margin Profile 15
Slide 16: End to End Data Network Creation
End to End Data Network Creation End to End Capability to Design, Build & Manage Data Networks for Telcos, Smart Cities, Rural Broadband & Defence Future Network Stack Digital Customer System of Marketing Management Engagement Software & System of Records Solutions Layer Data Management Network Mana
Slide 17: With Technology at the Core of Our Offerings
With Technology at the Core of Our Offerings With Technology at the Core of Our Offerings Among top global companies in terms of capacity Wide portfolio of products - Center of Excellence, Center for Smarter Sterlite Tech differentiated and innovative Aurangabad Networks, Gurgaon Academy Evolution i
Slide 18: Business Updates: Q3FY18
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Slide 19: Q3 Business Highlights at a glance
Q3 Business Highlights at a glance • The Company's optical fibre capacity expansion to 50 million in Aurangabad • Recorded highest ever Order Book (Rs. 4,573 received MSIPS approval from the Ministry of Cr), a 71% Y-o-Y growth – driven by strong Electronics & IT, and was accorded Ultra demand in Int
Slide 20: Awards & Recognitions
Awards & Recognitions Visionary Company in Gartner Magic Quadrant for Integrated Revenue and Customer Management , 2017 Telecom Asia Readers' Choice Award for BSS Innovation of the Year 2017 WBA ‘Best Connected City’ Global Award Telecom Leadership Forum Awards WBA ‘Best Connected City’ Global Award
Slide 21: Strong sales outlook riding on substantially built order book
Strong sales outlook riding on substantially built order book Order Book Mix +71% 4573 3832 3018 3140 2674 3236 2339 1541 1641 1124 1550 1477 1499 1493 1338 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Products Services & Software • Increasing Order book reflects predictable outlook for the company Numbers ar
Slide 22: Financial Performance: Q3FY18
Financial Performance: Q3FY18 22
Slide 23: Quarterly Financial Performance
Quarterly Financial Performance +14% +44% 836 208 732 744 779 707 179 166 164 145 Q3 FY17 Q4 FY17 Q1 FY 18 Q2 FY 18 Q3 FY 18 Q3 FY17 Q4 FY17 Q1 FY 18 Q2 FY 18 Q3 FY 18 Revenue (INR Cr.) EBITDA (INR Cr.) +83% 90 71 64 61 49 Highest ever EBITDA of more than 200 Cr 83% YoY growth in bottom line S
Slide 24: Financial Performance
Financial Performance P&L (INR Cr) FY17 9M FY17 9M FY18 Revenue 2,594 1,886 2,359 EBIDTA 542 377 551 EBITDA % 21% 20% 23% Depreciation 159 115 130 EBIT 383 262 421 EBIT % 15% 14% 18% Interest 123 99 79 PBT 260 164 343 Tax 40 12 97 Net Income (After 201 138 222 Minority Interest) ROCE % 21% 19% 29% 2
Slide 25: Financial Performance
Financial Performance 1,030 1.2x Cash flow 9M FY18 -14% 884 -35% Cash Profit ( After Tax ) 375 0.8x Operating Cash Flow 365 Capex 285 Net Cash flow 80 As on 31st As on 31st As on 31st As on 31st Dec ’16 Dec ’17 Dec ’16 Dec ’17 Net Debt Debt to Equity Ratio Values in INR Cr. 25
Slide 26: Demonstrated Historical Performance
Demonstrated Historical Performance +38% 551 +24% 2,594 542 2,275 2,359 475 1,619 345 1,096 1,148 181 151 FY 13 FY 14 FY 15 FY 16 FY17 9M FY 18 FY 13 FY 14 FY 15 FY 16 FY17 9M FY 18 Revenue EBITDA 29% +44% 421 20% 21% 350 383 18% 249 7% 8% 90 94 FY 13 FY 14 FY 15 FY 16 FY17 9M FY 18 FY 13 FY 14 FY 1
Slide 27: Creating Shared Value
Creating Shared Value EDUCATION ENVIRONMENT 172,000 students covered since inception 409 farmers impacted through Phase II and 89958 during FY 2017-19 of Project Jaldoot and a total of 867 since 2016 480 schools covered in 2017-18 94188 cu. m of water conserved in 2017 and a total of 738,188 m3 Clas
Slide 28: Thank You
(€ Sterlite Tech « Thank You
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