Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — Q2 FY17 Earnings Presentation
24 slides from Sterlite Technologies's earnings presentation, Oct 27, 2016
Slide 1: Earnings Presentation: Q2 FY17
Earnings Presentation: Q2 FY17 Oct 27, 2016 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: Contents
Contents Company Overview 4 Business Dynamics 6 Q2 FY17 Business Updates 10 Q2 FY17 Consolidated Financial Update 13 Strategic Direction 19 Appendix 21 3
Slide 4: Company Overview
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Slide 5: 3 Business Platforms 5 Attractive Opportunities
Businesses with Focused Portfolio 3 Business Platforms 5 Attractive Opportunities Integrated Offerings International Markets End to End Offerings with: Top 5 Optical Fiber Company Products India Telco’s Globally System Defense/Other Best in class: Network Integration Utilities design, Build & Manage
Slide 6: Business Dynamics
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Slide 7: Global Fiber Demand Dynamics
Global Fiber Demand Dynamics 418 Demand 382 • World Cable demand was up 11% in H1 ’16 over H1 ’15 • China continues to be primary market with over 55% of 314 world cable demand 241 • H1 Fiber (OF) shipment in H1 2016 was 226 mfkm, 263 216 which indicates full year CY2016 demand will be more 156 than
Slide 8: System Integration Market
System Integration Market Values are in INR Cr. 29,607 25,766 23,872 11,232 Defence + PSU’s Smart Cities Bharat Net 12,016 8,872 Telco -NI 4,000 1,500 4,000 12,500 10,500 9,000 1,750 1,875 2,000 FY17e FY18e FY19e Source: Company estimates 8
Slide 9: Sterlite Tech Telecom/ Data Business Offerings
Sterlite Tech Telecom/ Data Business Offerings Layers Sterlite Offerings Customers Telecom Software- Network Management. Telecom Software Global Telco’s & Billing Solution Active Network System Integration India Govt. Network Integration: Fiber Cable Network -Services India Telco’s -Solutions Produc
Slide 10: Q2 FY17 Business Updates
Q2 FY17 Business Updates 10
Slide 11: Q2FY17: Business Highlights
Q2FY17: Business Highlights Fiber capacity expanded to 25 Mn Selected as one of the two global Fiber fkm. Accelerated capacity to 30 Mn by cable supplier to a large global Telco Mid of FY18 capturing over 65% of its market share Achieved stronger Order book of Rs 3rd Smart city order win with 2,324
Slide 12: Sterlite Tech: Appoints Industry Leaders To Advisory Board
Sterlite Tech: Appoints Industry Leaders To Advisory Board • Former Reliance Jio MD and one of the founding members of private telephony in India • Served as Group-CEO, Maxis • Sterlite Tech to leverage the expertise of both Sandip Communications and Hutch (Vodafone), Das and Shantharaju on strategi
Slide 13: Q2 FY17 Consolidated Financial Update
Q2 FY17 Consolidated Financial Update All financial Numbers reported are as per Indian Accounting Standard (Ind-AS) 13
Slide 14: Quarterly Financial Performance
Quarterly Financial Performance -4% -5% 595 614 603 140 571 551 122 115 116 109 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Revenue (INR Cr.) EBITDA (INR Cr.) +39% Company registered sales of Rs 551 Cr 61 De-Growth in absolute EBITDA due to low cable uptake, d
Slide 15: Quarterly Volume Performance
Quarterly Volume Performance +30% -42% 6.1 2.0 5.4 5.5 5.5 4.7 1.5 1.5 1.3 1.2 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 OF Volume OFC Quarterly volumes for OF have crossed the 6 million mark for Q2 FY17 - annualized rate of 24 Mn fkm OF sales volume growth
Slide 16: International Revenue Profile
International Revenue Profile +28% 5% 2% 42% of Total Revenues 9% 30% of Total Revenues 5% 52% 231 181 27% Q1 FY17 Q2 FY17 China Middle East Latin America International Revenues (INR Cr.) Europe Asia Africa Revenues contribution increases to 42% from International Geo’s for Q2FY17 16
Slide 17: Order Book Profile
Order Book Profile +11% 2,324 3% 2,099 30% 67% Q1 FY17 Q2 FY17 Order Book (INR Cr.) Product Services Software Order book growth increased by 11% on QoQ basis, driven by strong products & services business demand 17
Slide 18: Consolidated P&L and Balance Sheet
Consolidated P&L and Balance Sheet P&L (INR Cr.) Q2 FY17 Balance sheet (INR Cr.) Q2/H1 FY17 Revenue 551 Net Worth 832 EBIDTA 109 EBITDA % 20% Net Debt 1,024 Depreciation 38 Total 1,857 EBIT 72 Fixed Assets 1,109 EBIT % 13% Interest 37 Net Working Capital 628 PBT 35 Goodwill 120 Tax (21) PAT (After m
Slide 19: Strategic Direction
€ Sterlite Tech Strategic Direction
Slide 20: Strategic Direction
Strategic Direction E) Reward Shareholders A) Market focused approach to drive sustained profitable growth Strategic Direction D) Defined principles B) Expanding ROCE for the for Inorganic Growth business C) Disciplined Financial control 20
Slide 21: Appendix
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Slide 22: 5 Year Journey: Consolidated P&L metrics
5 Year Journey : Consolidated P&L metrics +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 Continued grow
Slide 23: 5 Year Journey: Telecom Business Volume Journey
5 Year Journey : Telecom Business Volume Journey 20.1 +15% 7.7 +15% 17.7 6.5 13.8 5.2 12.5 4.6 11.7 3.7 FY 12 FY 13 FY 14 FY 15 FY 16 FY 12 FY 13 FY 14 FY 15 FY 16 OF Volume (Mn Fkm) OFC Volume (Mn Fkm) Volume of OF continues to growth @ of 15% CAGR levels Cabling volume also continues to growth
Slide 24: Thank You
(€ Sterlite Tech « Thank You
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