Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q2 FY2025 Earnings Presentation

32 slides from Sterlite Technologies's earnings presentation, Nov 5, 2024

Slide 1: Earnings Presentation Q2 FY25
Earnings Presentation Earnings Call Q2 FY25 5th November 2024
Slide 2: Safe Harbour
Safe Harbour 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 genera
Slide 3: Ankit Agarwal
Ankit Agarwal Managing Director and CEO-Optical Networking Business A believer in purpose-led organizations, Ankit has been leading STL’s growth journey as it transforms billions of lives by connecting the world. He holds sustainability very close to his heart and is leading the company’s ambitious
Slide 4: Strategic Priorities for FY25
Strategic Priorities for FY25 Strategic Focus on gaining market Focus on Profitable Focus on 1 Priorities for FY25 2 share in Optical business 3 order wins in Global Services 4 growth in STL Digital 5 Robust Financials © 2024-2025 Sterlite Technologies Limited 4
Slide 5: Grow, Build, Consolidate
Strategic priorities for FY25 01 02 Consolidate 03 Build Grow Optical Networking Global Services STL Digital • Increase OFC market share • Build capability for value • Consciously invest in and optical connectivity added services building technology and attach rate domain capability • Focus on proje
Slide 6: Transforming lives through social responsibility initiatives
Transforming lives through social responsibility initiatives RoboEdge: Empowering students with NextGen skills & focus on Robotics. Celebrating 10 Years of Jeewan Jyoti: Empowering underprivileged women Covered 11+ schools and benefitted 5,000+ students by training them in vocational skills. Benefit
Slide 7: Committed to net-zero emissions by 2030
Committed to net-zero emissions by 2030 MSCI * ESG rating at A ENVIRONMENTALLY SOCIALLY GOVERNED SUSTAINABLE RESPONSIBLE WITH CARE Eco-labelled products Committed to the UN SDGs1 Strong internal governance 250,000+ MT 16 Waste diverted from landfills (FY19 – Q2FY25) Two of the Big Four Aligned with
Slide 8: Optical Business; STL's focus on gaining market share
Optical Business; STL’s focus on gaining market share Focus on gaining 1 Strategic Priorities for FY25 2 business Focus on Profitable market share in Optical 3 order wins in Global Services 4 Focus on growth in STL Digital 5 Robust Financials © 2024-2025 Sterlite Technologies Limited 8
Slide 9: OFC Demand (Mn Fkm)
Near-term demand softness, robust growth in medium to long term 700 4.3% CAGR 632 654 Reflections 606 600 577 579 As per CRU; OFC Demand (Mn Fkm) 536 547 • Global OFC demand till Sept, 2024 contracted 500 marginally • 2024 demand expected to contract or stay flat 400 300 200 Future Outlook • Observi
Slide 10: AI revolution and Data Centre expansion presenting unprecedented opportunity
AI revolution and Data Centre expansion presenting unprecedented opportunity OPPORTUNITY STL’s AI-DC Portfolio India DC Capacity in (MW) Fibre explosion in 1,800 Data centres 950 IMC 2024 – STL Launches AI-DC Portfolio, boost to Make in India 2024 2026 Initiative India AI DC Capacity (MW) 36x fibre
Slide 11: Three investment cycles coinciding
Three investments cycles coinciding Multi-year network build cycle 5G FTTx Data Centres Additionally supported by; North America • Improved telecom Subscriptions Growth 430 mn FTTx in NA in M fkm Data Centre Market company tariffs in 25.76 K 260 mn 15.93 K MW Indian market 58 65 52 MW 39 39 44 • Ant
Slide 12: Hi-Tech manufacturing and Next Gen products
Hi-Tech manufacturing and Next Gen products ‘First in the World / India’ PRODUCTS/ INITIATIVES • 160 micron fibre – worlds slimmest optical fibre PUREST GRADE SILICON • Multiverse / MCF – Revolutionary Multicore fibre • Eco-labelled Certified Optical products • Green Hydrogen project in Optical indu
Slide 13: Market share and optical connectivity attach rate
Market share and optical connectivity attach rate Global (ex-China) OFC market share Optical connectivity attach rate 22% 22% 13% 8% 8% 6% H1CY23 H1CY24 Q2FY25 FY24 Q1 FY25 Q2 FY25 Market Share = STL Sales Volume / Total Market Demand Attach rate = Optical connectivity revenue / OFC revenue Observed
Slide 14: Optical Networking Business financial highlights
Optical Networking Business financial highlights Revenue* (INR Cr.) 2,196 1,837 1,084 1,027 857 810 Q2 FY25 revenue at INR 1,027 Cr. 777 • OFC volume lower on y-o-y basis • Improved volumes and revenues on q-o-q basis Q3FY24 Q4FY24 Q1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2 FY25 EBITDA margin at 12.9% EB
Slide 15: Well positioned to grow the Optical Business
Well positioned to grow the Optical Business 1 Local capacities: Completed capacity expansions, positioned closer to focused markets and well placed to win in the market 2 Cost structure: Continue to optimize cost structure both in terms of variable & fixed costs 3 Product development & innovation:
Slide 16: Focus on Profitable order wins in Global Services
Focus on Profitable order wins in Global Services Strategic Profitable order Focus on 1 Priorities for FY25 2 Focus on gaining market share in Optical business 3 wins in Global Services 4 growth in STL Digital 5 Robust Financials © 2024-2025 Sterlite Technologies Limited 16
Slide 17: Global Services Business financial highlights
Global Services Business financial highlights Revenue* (INR Cr.) 728 711 405 355 375 356 323 Q2 FY25 revenue at INR 356 Cr. • Stable revenues on q-o-q basis • Continued focus on selective order intake Q3FY24 Q4FY24 Q1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 EBITDA* (INR Cr.) Q2 FY25 EBITDA at INR 24 Cr. EBI
Slide 18: Project execution on track
Project execution on track India - Public India - Private UK Transformative Modern Optical Gigabit Rural digital inclusion Network Networks Fibre roll out Fibre roll out FTTH , UK Telangana 69% Completed (Large Indian telco) 61% All Projects Completed Phase - 3 48% Completed Bharatnet Project Networ
Slide 19: Focus on growth in STL Digital
Focus on growth in STL Digital Strategic Focus on Profitable Focus on 1 Priorities for FY25 2 Focus on gaining market share in Optical business 3 order wins in Global Services 4 growth in STL Digital 5 Robust Financials © 2024-2025 Sterlite Technologies Limited 19
Slide 20: Continued growth momentum in STL Digital
Continued growth momentum in STL Digital Identity Service offerings Industry vertical • Enterprise saas • Technology services • Life sciences & healthcare • Product engineering ▪ Robust deal flow, in US and India • Manufacturing from marquee customers during • Delivery Centre in • Cloud & cyber Bang
Slide 21: Digital business financial highlights
Digital business financial highlights Revenue* (INR Cr.) 140 135 81 78 71 78 64 Q2 FY25 Revenue at INR 64 Cr. Q3FY24 Q4FY24 Q1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 • Revenue declined on y-o-y basis due to focus on profitable growth EBITDA*(INR Cr.) Q3FY24 Q4FY24 Q1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2 FY25
Slide 22: Tushar Shroff
Tushar Shroff Group CFO Tushar has a rich experience of nearly three decades and is highly focused on building resilient and value-creating organizations. Tushar has deep expertise in the areas of fundraising, capital structuring, merger & acquisition, treasury management, taxation, financial accoun
Slide 23: Focus on maintaining operating profitability & reducing debt
Focus on maintaining operating profitability & reducing debt Strategic Robust 1 Priorities for FY25 2 Focus on gaining market share in Optical business 3 Profitable order wins in Global Services 4 Focus on growth in STL Digital 5 Financials © 2024-2025 Sterlite Technologies Limited 23
Slide 24: STL financial highlights
STL financial highlights 1,322 1,494 1,413 1,140 1,218 109 216 93 151 67 14.4 8.2 7.7 10.7 5.9 Q3FY24 Q4FY24 Q1FY25 Q2FY24 Q2FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY24 Q2FY25 EBITDA % Revenue* (INR Cr.) EBITDA* (INR Cr.) Q2 FY25 Revenue at INR 1,413 Cr • OFC volumes lower on y-o-y basis 28 • Improved volumes
Slide 25: STL H1 FY25 Financial Highlights
STL H1 FY25 Financial Highlights 3,016 2,631 451 244 15.0 9.3 H1FY24 H1FY25 H1FY24 H2FY25 EBITDA % Revenue* (INR Cr.) EBITDA* (INR cr.) 74 • H1 FY 25 Revenues at INR 2,631 crores • H1 FY 25 EBITDA at INR 244 crores -60 H1FY24 H1FY25 • H1 FY 25 PAT loss at INR 60 crores PAT* (INR Cr.) © 2024-2025 Ste
Slide 26: Diversified revenue mix
Diversified revenue mix Customer segment split Geographical distribution Large order wins in Revenues* (INR Cr.) Revenues* (INR Cr.) Q2 FY25 5,478 1,218 1,413 5,478 1,218 1,413 • Secured Large orders from a leading 2% 1% 1% American customer 15% 19.0% 3% 29% 35% 37% • Large orders from leading UK 11
Slide 27: Order Book Highlights
Order Book Highlights Open order book (INR Cr.) Order book spread (INR Cr.) 9,883 8,630 6,997 1,633 Q1FY25 Q2FY25 Balance 6m FY25 FY26 and beyond Customer wise open order book Open order book BU wise Enterprises Digital & Technology 13% 4% Global Services - Capex 21% 45% Optical Networking Citizen n
Slide 28: Consolidated Financials: Abridged Version
Consolidated Financials: Abridged Version P&L (INR Cr.) Q1FY25 Q2 FY24 Q2 FY25 H1 FY24 H1 FY25 Revenue* 1,218 1,494 1,413 3,016 2,631 EBITDA* 93 216 151 450 244 EBITDA % 7.7% 14.4% 10.7% 15.0% 9.3% Depreciation 82 85 83 166 165 Key Updates EBIT* 11 131 68 284 80 • Net Debt stands at 2,169 Cr at H1 F
Slide 29: Global Services demerger status
Global Services demerger status Completed – May 2023 Completed –Sept 2023 In Progress Board / Audit Committee Stock Exchange Filings NCLT Filings and Listing of Resulting Co Approval for Demerger and receipt of In-principle Approvals (Post receipt of NCLT Approvals (In Progress) Order) • Scheme file
Slide 30: Summary focus areas
Summary focus areas • Drive technology and cost leadership to be in ‘Global Top 3’ • Increase sales in focused markets to fill the short-term volume gap Optical Business • Increase optical connectivity growth and attach rate • Rapidly building data center product portfolio • Continued focus on selec

Sterlite Technologies — Q2 FY2025 Earnings Presentation on 6ix

Sterlite Technologies — Q2 FY2025 Earnings Presentation

Slide 1: Earnings Presentation Q2 FY25

Slide 2: Safe Harbour

Slide 3: Ankit Agarwal

Slide 4: Strategic Priorities for FY25

Slide 5: Grow, Build, Consolidate

Slide 6: Transforming lives through social responsibility initiatives

Slide 7: Committed to net-zero emissions by 2030

Slide 8: Optical Business; STL's focus on gaining market share

Slide 9: OFC Demand (Mn Fkm)

Slide 10: AI revolution and Data Centre expansion presenting unprecedented opportunity

Slide 11: Three investment cycles coinciding

Slide 12: Hi-Tech manufacturing and Next Gen products

Slide 13: Market share and optical connectivity attach rate

Slide 14: Optical Networking Business financial highlights

Slide 15: Well positioned to grow the Optical Business

Slide 16: Focus on Profitable order wins in Global Services

Slide 17: Global Services Business financial highlights

Slide 18: Project execution on track

Slide 19: Focus on growth in STL Digital

Slide 20: Continued growth momentum in STL Digital

Slide 21: Digital business financial highlights

Slide 22: Tushar Shroff

Slide 23: Focus on maintaining operating profitability & reducing debt

Slide 24: STL financial highlights

Slide 25: STL H1 FY25 Financial Highlights

Slide 26: Diversified revenue mix

Slide 27: Order Book Highlights

Slide 28: Consolidated Financials: Abridged Version

Slide 29: Global Services demerger status

Slide 30: Summary focus areas

Slide 31: Lets answer your queries!

Slide 32: beyond tomorrow