Sterlite Technologies Limited · NSE:STLTECH
Sterlite Technologies — H1 FY2016 Earnings Presentation
30 slides from Sterlite Technologies's earnings presentation, Oct 26, 2015
Slide 1: Q2 & H1FY16 – Earnings call
Sterlite Technologies Limited Q2 & H1FY16 – Earnings call 26 October 2015 www.sterlitetechnologies.com
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: Telecom business
Telecom business www.sterlitetechnologies.com
Slide 4: Value proposition for the telecom business
Value proposition for the telecom business Beneficiary of exponential growth in data consumption Best in class Established track operations; Fully record, robust integrated outlook Cutting edge technology with focus on R&D and engineering Significant global presence Unique skill sets with market and
Slide 5: Wide footprint within the telecom sector
Wide footprint within the telecom sector STL Telecom Business Products Network & System Integration Software and Services • Optical fibers & preform • End-to-end project • OSS / BSS software • Fiber optic cables and management solutions structured data cables • Specialized team with • Other services
Slide 6: Forefront of emerging data opportunity
Forefront of emerging data opportunity Data consumption continues to grow fiber demand North America Europe China 2014 2019 By 2019, there will be nearly 3.9 billion global Internet users (more India Others World Total than 51 percent of the world’s Data in Petabytes per month Exponential data consu
Slide 7: Beneficiary of the global telecom capex spend
Forefront of emerging data opportunity Beneficiary of the global telecom capex spend 35% US Europe China India Average capex Global telecom service Capex spend as % of revenues 30% spend / year providers continue to 25% invest heavily in building 20% China $50bn next generation networks 15% Europe $
Slide 8: Telecom services business – System and network integration
Telecom services business – System and network integration Services Design Build Integrate Manage Opportunities Network Layer Digital India 3 ICT Application System Smart integration Cities 2 Active network Fiber Infra network Network Access 1 Passive network integration Solution • Sterlite to offer
Slide 9: Capabilities acquired through Elitecore
Capabilities acquired through Elitecore • Elitecore is a Telecom Software Product and Services Core competencies company having global presence in providing monetizing Monetization of Next Generation Networks and customer experience solution to CSPs. Real Time Analytics • Indigenously developed end
Slide 10: Elitecore is a profitable niche player with strong growth prospects
Elitecore is a profitable niche player with strong growth prospects Elitecore is a pure play BSS / OSS player With strong partner relationships Expected addressable market size (Fy15 to Fy20) $bn Financial performance 12 11.0 30 3 8.8 2.7 7.8 7.7 3.9 20 2.1 2 7 2.7 2.7 3.1 2.7 0.7 5.7 7.1 10 1 2 0.9
Slide 11: Sterlite + Elitecore: a win-win outcome
Sterlite + Elitecore : a win- win outcome Very strong economic and strategic rationale for the transaction • Is a strong strategic fit to Sterlite as it plans to build capabilities in the services and solutions space – create a new facet within the telecoms value chain • Sterlite to be able to offer
Slide 12: Leader in developing broadband solutions for converged communication networks
Leader in developing broadband solutions for converged communication networks Offer full range of products and solutions – complete system integration Continually build capabilities for Enter high value product segments future networks – focus on high value engineered products Be Partner of choice f
Slide 13: Power business
Power business www.sterlitetechnologies.com
Slide 14: Our power business
Our power business Products Solutions Infrastructure Key Customers • Full range conductors from • Engineering T&D • Largest private sector • Central and Private sector ACSR to high performance networks & re- independent power power utilities conductors conductoring solutions transmission company in
Slide 15: Connecting key generating centers with load centers
Connecting key generating centers with load centers Build-Own-Operate-Maintain (BOOM) Model with 7 Projects in Portfolio Amargarh 6 o 5000 Km circuit transmission lines & 3 substations across 12 states Jalandhar o Estimated capital expenditure of US $ 1.3bn 4 Kota 1 o Three project fully commissio
Slide 16: Financials
Financials www.sterlitetechnologies.com
Slide 17: Quarterly standalone financials
Quarterly standalone financials INR Crore 979 975 1,056 1,010 895 Revenues 564 592 510 10 Q1 FY15 Q2 FY 15 Q3 FY 15 Q4 FY15 Q1 FY16 Q2 FY16 INR Crore 150 131 136 119 102 81 EBITDA 100 71 50 - Q1 FY15 Q2 FY 15 Q3 FY 15 Q4 FY15 Q1 FY16 Q2 FY16 INR Crore 39 40 29 30 23 20 PAT 20 13 9 10 - Q1 FY15 Q2 FY
Slide 18: Volume analysis for the Telecom business
Volume analysis for the Telecom business OF India (Million fkm) China volumes (Million fkm) Total OF (Million fkm) 4.6 4.9 4.5 4.7 OF Volumes 5.0 4.3 3.9 4.0 1.1 1.3 1.3 1.2 0.9 1.3 3.0 2.0 3.5 3.6 3.5 3.0 3.0 3.2 1.0 - Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 Q1 FY 16 Q2 FY16 2.5 OFC Volumes 2.0 1.5 2.2
Slide 19: Financial Performance of the Telecom business
Financial Performance of the Telecom business INR Crore 2,000 1,619 1,500 Revenues 982 1,000 517 462 500 - FY15 Q1 FY 16 Q2 FY16 H1 FY16 INR Crore 400 345 300 215 EBITDA 200 102 113 100 - FY15 Q1 FY 16 Q2 FY16 H1 FY16 INR Crore 150 118 100 73 PAT 32 40 50 - FY15 Q1 FY 16 Q2 FY16 H1 FY16 NOTE: The pe
Slide 20: Operating highlights for the Telecom business
Operating highlights for the Telecom business Mix between domestic revenues and exports was at 26% for the business, main export markets were China and Europe Revenues for the quarter from the NFS order were at Rs 78 crore and for the half year was at Rs163 crores against Rs 69 crore for the ful
Slide 21: Financial performance of the Power business
Financial performance of the Power business INR Crore 2,000 1,478 1,500 1,142 Revenues 1,000 522 627 500 - FY15 Q1 FY 16 Q2 FY16 H1 FY16 INR Crore 300 214 200 167 EBITDA 96 118 100 - FY15 Q1 FY 16 Q2 FY16 H1 FY16 INR Crore - FY15 Q1 FY 16 Q2 FY16 H1 FY16 (50) PAT (55) (64) (100) (150) (121) (119) NO
Slide 22: Product volumes and level of investment in the Power business
Product volumes and level of investment in the Power business Conductors (MT) 40,000 30,347 30,176 30,000 26,855 27,396 20,000 14,952 8,794 10,000 - Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 Q1 FY 16 Q2 FY16 INR Crore Sterlite Standard Chartered 2,000 1,750 1,750 1,650 1,650 1,650 1,500 450 450 450 500 50
Slide 23: Proforma financials for Telecom and Power
Proforma financials for Telecom and Power Consolidated FY 2014-15 (Carved out) Consolidated H1 FY 2016 (Carved Out) Tel Power Total Tel Power Total Revenue 1,619 1,478 3,097 Revenue 982 1,142 2,124 EBIDTA 345 167 512 EBIDTA 215 214 429 EBITDA Margin 21% 11% 17% EBITDA Margin 22% 19% 20% Depreciation
Slide 24: Sterlite Technologies Investor Relations App
S Sterlite STERLITE TECHNOLOGIES IS NOW MOBILE AND AT YOUR FINGERTIPS With mobile becoming the new desktop, we decided to bring all investor relations related communications at your fingertips. Introducing the Sterlite Technologies Investor Relations App. Oo L Sterlite * YOUR ONE STOP SHOP FOR ALL T
Slide 25: Additional financial information
Additional financial information www.sterlitetechnologies.com
Slide 26: Additional financial information – Standalone financials
Additional financial information – Standalone financials Q2 FY 16 Q1 FY 16 Q2 FY 15 6M FY 16 6M FY 15 FY 15 Sales 1,056 975 592 2,031 1,156 3,030 EBITDA 136 119 81 256 153 386 EBITDA % 13% 12% 14% 13% 13% 13% Depreciation 31 29 27 60 54 108 EBIT 105 91 54 196 99 278 EBIT % 10% 9% 9% 10% 9% 9% Intere
Slide 27: Additional financial information – Standalone financials
Additional financial information – Standalone financials Telecom Standalone (INR Cr) Q2 FY 16 Q1 FY 16 Q2 FY 15 6M FY 16 6M FY 15 FY 15 Sales 478 424 287 902 608 1,487 EBITDA 112 101 76 213 145 345 EBITDA % 23% 24% 26% 24% 24% 23% Depreciation 22 19 18 41 38 76 EBIT 90 82 57 172 108 269 EBIT % 19% 1
Slide 28: Additional financial information – Consolidated financials
Additional financial information – Consolidated financials Standalone Consolidated Standalone Consolidated Standalone Consolidated Quarter ended Half year ended Year ended Particulars Sep 15 Sep 15 Sep 15 Sep 15 Mar 15 Mar 15 (Unaudited / (Unaudited / (Unaudited) (Unaudited) (Audited) (Audited) Unre
Slide 29: Additional financial information – Consolidated financials
Additional financial information – Consolidated financials Standalone Consolidated Standalone Consolidated Standalone Consolidated Quarter ended Half year ended Year ended Segment Reporting Sep 15 Sep 15 Sep 15 Sep 15 Mar 15 Mar 15 (Unaudited / (Unaudited / (Unaudited) (Unaudited) (Audited) (Audited
Slide 30: Thank you
Thank you www.sterlitetechnologies.com
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