Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q4 FY24 Earnings Presentation

31 slides from Sterlite Technologies's earnings presentation, May 8, 2024

Slide 1: Earnings Presentation Q4 FY24
stl.tech Earnings Presentation Earnings Call Q4 FY24 8th May 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, Managing Director
Ankit Agarwal Managing Director 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 Net-Zero by 2030 target, from the fr
Slide 4: Strategic Priorities for FY25
Strategic Priorities for FY25 Strategic Focus on gaining market 1 Priorities for FY25 2 share in Optical business Focus on Profitable 3 order wins in Global Services 4 Strong growth in STL Digital 5 Robust Financials © 2024-2025 Sterlite Technologies Limited 4
Slide 5: Delivered on strategic priorities of FY24
Delivered on strategic priorities of FY24 Momentum in optical Optimised cost structure Strengthened y-o-y reduction in major cost connectivity Optical Networking Secured first order in North America components Improved profitability in Scaled Digital Business Pivoted Services Business Global Service
Slide 6: 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 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 245,000+ MT 16 Waste diverted from landfills (FY19 – FY24) Two of the Big Four Aligned with 16
Slide 8: Focus on gaining market share in Optical business
Optical Business navigating short-term softness; STL’s focus on gaining market share Focus on gaining 1 Strategic Priorities for FY25 2 market share in Optical 3 business Profitable order wins in Global Services 4 Strong growth in STL Digital 5 Robust Financials © 2024-2025 Sterlite Technologies Lim
Slide 9: Near-term demand softness, robust growth in medium to long term
Near-term demand softness, robust growth in medium to long term • Temporary downturn in North America due to inventory digestion FY24 Reflections: • OFC consumption for 2023 declined by 7% 700 +4.4% CAGR 666 globally, led by ~12% decline in North America 642 617 • Inventory played a major role, subo
Slide 10: Fiber, a necessity for AI led Digital Society
Fiber, a necessity for AI led Digital Society Digital Society Connecting the unconnected Cloud Computing AR | VR IoT Video | Online Gaming 1/3rd of global population Projected to grow at 15% Projected growth at 32% 24% CAGR projected growth Network intensive leisure activities e.g remains offline an
Slide 11: Three investments cycles coinciding
Three investments cycles coinciding Multi-year network build cycle 5G FTTx Data Centers Additionally supported by North America Government policy Subscriptions Growth FTTx in NA in M fkm Data Center Market • USA Govt Funding of ~$97 669 25.76 K bn for broadband infra mn 15.93 K MW 60 63 (BEAD progra
Slide 12: Strong tailwinds in US on optical demand
Strong tailwinds in US on optical demand North America optical cable demand, mfkm North America CAGR=+13.0% US BEAD c government • $ 42.5 Bn Program push for • State of Louisiana expected to begin utilizing funds by April, 24 155 171 OFC infra • Most states are likely to receive 139 113 122 funding
Slide 13: Observing decline in market share; improvement in optical attach rate
Observing decline in market share; improvement in optical attach rate Global (ex-China) OFC market share Optical connectivity attach rate 12% 13% 10% 8% FY23 FY24 FY23 FY24 Market Share = STL Sales Volume / Total Market Demand Attach rate = Optical connectivity revenue / OFC revenue Observing OFC ma
Slide 14: Optical Networking Business financial highlights
Optical Networking Business financial highlights Revenue* (INR Cr.) 5,439 1,505 3,830 1,112 1,084 857 777 FY24 revenue at INR 3,830 Cr. • OFC volume lower on y-o-y basis Q1FY24 Q2FY24 Q3FY24 Q4FY23 Q4FY24 FY23 FY24 EBITDA* (INR Cr.) EBITDA % FY24 EBITDA margin at 16.2% • Reduction in EBITDA on accou
Slide 15: Well positioned to grow the Optical Business
Well positioned to grow the Optical Business 1 Local capacities: Completed capacity expansions, well placed to win in the market and closer to Focused Markets 2 Cost structure: Optimized cost structures both in terms of variable & fixed costs 3 Product development & innovation: 681 patents1 with con
Slide 16: Profitable order wins in Global Services
Profitable order wins in Global Services Strategic Profitable order 1 Priorities for FY25 2 Focus on gaining market share in Optical business 3 wins in Global Services 4 Strong 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.) 1,511 1,456 405 353 375 352 323 FY24 revenue at INR 1,456 Cr. • Selective order intake & execution Q1FY24 Q2FY24 Q3FY24 Q4FY23 Q4FY24 FY23 FY24 FY24 EBITDA at INR 110 Cr. EBITDA* (INR Cr.) • Favourable project mix and improved EBITDA %
Slide 18: Project execution on track
Project execution on track India - Public India - Private UK Transformative Modern Optical Gigabit Rural digital inclusion Network Networks Fiber roll out Fiber roll out FTTH , UK Telangana 68% Completed (Large Indian telco) 37% All Projects Completed Phase - 3 36% Completed Bharatnet Project Networ
Slide 19: Growth in STL Digital continues
Growth in STL Digital continues Strategic 1 Priorities for FY25 2 Focus on gaining market share in Optical business 3 Profitable order wins in Global Services 4 Strong growth 5 in STL Digital 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  Strong deal flow, new customer • Product engineering • Manufacturing acquisitions in US and India across • Delivery centre in • Cloud & cyber B
Slide 21: Digital business financial highlights
Digital business financial highlights Revenue* (INR Cr.) 298 78 80 78 62 35 70 FY24 Revenue up at INR 298 Cr. Q1FY24 Q2FY24 Q3FY24 Q4FY23 Q4FY24 FY23 FY24 • Revenue growth continued EBITDA*(INR Cr.) FY24 EBITDA loss at INR 83 Cr. Q1FY24 Q2FY24 Q3FY24 Q4FY23 Q4FY24 FY23 FY24 -12 • EBITDA losses trend
Slide 22: Tushar Shroff, Group CFO
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 Focus on gaining market Robust 1 Priorities for FY25 2 share in Optical business 3 Profitable order wins in Global Services 4 Strong growth in STL Digital 5 Financials © 2024-2025 Sterlite Technologies Limited 23
Slide 24: STL financial highlights
STL financial highlights 6,925 931 1,872 5,478 280 627 1,522 1,494 1,322 235 1,140 216 13.4 15.0 11.4 15.4 14.5 109 67 8.2 5.9 Q1FY24 Q2FY24 Q3FY24 Q4FY23 Q4FY24 FY23 FY24 Q1FY24 Q2FY24 Q3FY24 Q4FY23 Q4FY24 FY23 FY24 Revenue* (INR Cr.) EBITDA % EBITDA* (INR Cr.) 245 FY24 Revenue at INR 5,478 Cr 82 4
Slide 25: Diversified revenue mix
Diversified revenue mix Customer segment split Geographical distribution Multi million dollar order Revenues* (INR Cr.) Revenues* (INR Cr.) wins in Q4 FY24 6,925 5,478 6,925 5,478 • Large UK telecom player for 4% 1% 2% 5% 15% optical fiber cable 3% 26% 35% • Long term large orders for fiber cable su
Slide 26: Order Book Highlights
Order Book Highlights Open order book (INR Cr.) Order book spread (INR Cr.) 10,290 9,392 9,849 898 Q3FY24 Q4FY24 Q1 FY25 Q2 FY25 and beyond Customer wise open order book Open order book BU wise Enterprises Digital & Technology 19% 6% Global Services - Capex 20% 48% Optical Networking 22% 59% Citizen
Slide 27: Consolidated financials: abridged version
Consolidated financials: abridged version P&L (INR Cr.) Q4 FY23 Q3 FY24 Q4 FY24 FY23 FY24 Revenue* 1,872 1,322 1,140 6,925 5,478 EBITDA* 280 109 67 931 627 EBITDA % 15.0% 8.2% 5.9% 13.4% 11.4% Depreciation 78 84 85 309 335 EBIT* 201 25 -18 622 291 Key Updates Interest 89 94 88 311 369 • Net Debt has
Slide 28: Global Services demerger status
Global Services demerger status Current Structure Proposed Structure Shareholding as on May 3rd,2024 Public Public Promoter Public Promoter Promoter Group Shareholders Shareholders Group Shareholders Group 55.81% 44.19% 55.81% 44.19% 55.81% 44.19% Current Updates Optical STL STL STL Networks  First
Slide 29: Summary focus areas
Summary focus areas • Drive cost leadership and pursue our ambition to be the ‘Global Top 3’ Optical Business • Increase sales in focused markets to fill the short-term volume gap • Increase optical connectivity growth and attach rate • Continued focus on select projects to improve profitability and

Sterlite Technologies — Q4 FY24 Earnings Presentation on 6ix

Sterlite Technologies — Q4 FY24 Earnings Presentation

Slide 1: Earnings Presentation Q4 FY24

Slide 2: Safe Harbour

Slide 3: Ankit Agarwal, Managing Director

Slide 4: Strategic Priorities for FY25

Slide 5: Delivered on strategic priorities of FY24

Slide 6: Grow Build Consolidate

Slide 7: Committed to net-zero emissions by 2030

Slide 8: Focus on gaining market share in Optical business

Slide 9: Near-term demand softness, robust growth in medium to long term

Slide 10: Fiber, a necessity for AI led Digital Society

Slide 11: Three investments cycles coinciding

Slide 12: Strong tailwinds in US on optical demand

Slide 13: Observing decline in market share; improvement in optical attach rate

Slide 14: Optical Networking Business financial highlights

Slide 15: Well positioned to grow the Optical Business

Slide 16: Profitable order wins in Global Services

Slide 17: Global Services business financial highlights

Slide 18: Project execution on track

Slide 19: Growth in STL Digital continues

Slide 20: Continued growth momentum in STL Digital

Slide 21: Digital business financial highlights

Slide 22: Tushar Shroff, Group CFO

Slide 23: Focus on maintaining operating profitability & reducing debt

Slide 24: STL financial highlights

Slide 25: Diversified revenue mix

Slide 26: Order Book Highlights

Slide 27: Consolidated financials: abridged version

Slide 28: Global Services demerger status

Slide 29: Summary focus areas

Slide 30: Lets answer your queries!

Slide 31: beyond tomorrow