Sterlite Technologies Limited · NSE:STLTECH

Sterlite Technologies — Q3 FY2025 Earnings Presentation

31 slides from Sterlite Technologies's earnings presentation, Jan 17, 2025

Slide 1: Earnings Presentation Q3 FY'25
Earnings Presentation Earnings Call Q3 FY’25 17th January 2025
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 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. Jeewan Jyoti: Empowering underprivileged women by training them in Covered 11+ schools and benefitted 5,000+ students vocational skills. Benefitted 5,100+ women. 4523 k
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 260,000+ MT 16 Waste diverted from landfills (FY19 – Q3FY25) Aligned with 16 of the 17 SDGs Tw
Slide 8: Optical Business; STL's focus on gaining market share
Optical Business; STL’s focus on gaining market share Strategic Focus on gaining Focus on Profitable Focus on 1 Priorities for FY25 2 market share in Optical business 3 order wins in Global Services 4 growth in STL Digital 5 Robust Financials © 2024-2025 Sterlite Technologies Limited 8
Slide 9: OFC Demand: near-term softness, robust medium to long term growth
Near-term demand softness, robust growth in medium to long term Reflections 4.1% CAGR 700 620 As per CRU; 595 568 • 2024 volumes are expected to hit the lowest 600 577 545 OFC Demand (Mn Fkm) 536 527 point in last four years. • China demand contracted, however Global 500 demand ex-China suggested gr
Slide 10: AI revolution and Data Centre expansion presenting unprecedented opportunity
AI revolution and Data Centre expansion presenting unprecedented opportunity Opportunity Fibre explosion in DC STL’s AI-DC Portfolio Estimated global data centre capacity demand, gigawatts AI-Driven Fibre Make in India for the World 250 Demand 200 150 100 50 36x more fiber required for End to end po
Slide 11: Three investment cycles coinciding
Three investments cycles coinciding Multi-year network build cycle 5G FTTx Data Centres Supported by: Global Rise in no of Global 5G Operators Global FTTx deployments • Atleast 14 European 509 515 524 535 578 582 585 622 618 Global optical cable demand countries switching 26% growth for data centres
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 – World’s Slimmest Optical Fibre PUREST GRADE SILICON Multiverse / MCF – Game-Changing Multicore Fibre Innovation Eco-labelled Certified - Sustainability at Its Core Green Hydrogen - Pione
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% 21% 8% 8% Q2FY25 Q3FY25 Q1 FY25 Q2 FY25 Q3FY25 Market Share = STL Sales Volume / Total Market Demand Attach rate = Optical connectivity revenue / OFC revenue Stable OFC marke
Slide 14: Optical Networking Business financial highlights
Optical Networking Business financial highlights Revenue* (INR Cr.) 3,053 2,761 1,027 924 810 857 777 Q3 FY25 revenue at INR 924 Cr. • Improved volumes and revenues on Q4FY24 Q1FY25 Q2FY25 Q3FY24 Q3FY25 9MFY24 9MFY25 y-o-y basis EBITDA* (INR Cr.) EBITDA % Q3 FY25 EBITDA margin at 12.9% 561 • Improve
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 Product development & innovation: 74
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 1 © 2024-2025 Sterlite Technologies Limited 6
Slide 17: Global Services Business financial highlights
Global Services Business financial highlights Revenue* (INR Cr.) 1,133 1,000 405 355 356 323 289 Q3 FY25 revenue at INR 289 Cr. • Continued focus on selective order intake Q4FY24 Q1FY25 Q2FY25 Q3FY24 Q3FY25 9MFY24 9MFY25 Q3 FY25 EBITDA at INR 20 Cr. EBITDA* (INR Cr.) EBITDA % • Strong execution focu
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 FTTH , UK Telangana 69% Completed 63% All Projects Completed Fibre roll out Bharatnet Project (Large Indian telco) Network Modernization 76% Phas
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 1 © 2024-2025 Sterlite Technologies Limited 9
Slide 20: Continued growth momentum in STL Digital
Continued growth momentum in STL Digital Identity Service offerings Industry vertical ▪ Robust deal flow, across • Enterprise saas • Technology geographies from marquee services • Life sciences & healthcare customers during Q3FY25 • Product engineering • Manufacturing • Delivery Centre in • Cloud &
Slide 21: Digital business financial highlights
Digital business financial highlights Revenue* (INR Cr.) 220 212 78 71 80 77 64 Q3 FY25 Revenue at INR 77 Cr. Q4FY24 Q1FY25 Q2FY25 Q3FY24 Q3FY25 9MFY24 9MFY25 • Revenues improved on q-o-q basis EBITDA*(INR Cr.) Q3 FY25 EBITDA at INR 4 Cr. • Focus on profitable growth leading to Q4FY24 Q1FY25 Q2FY25
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 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 2 © 2024-2025 Sterlite Technologies Limited 3
Slide 24: STL financial highlights
STL financial highlights 4,338 559 3,892 1,413 1,218 1,322 1,261 151 378 1,140 109 133 93 67 12.9 9.7 7.7 10.7 10.5 5.9 8.2 Q4FY24 Q1FY25 Q2FY25 Q3FY24 Q3FY25 9MFY24 9MFY25 Q4FY24 Q1FY25 Q2FY25 Q3FY24 Q3FY25 9MFY24 9MFY25 Revenue* (INR Cr.) EBITDA* (INR Cr.) EBITDA % PAT* (INR Cr.) Q4FY24 Q1FY25 Q2F
Slide 25: Diversified revenue mix
Diversified revenue mix Customer segment split Geographical distribution Large order wins in Revenues* (INR Cr.) Revenues* (INR Cr.) Q3 FY25 5,478 1,218 1,413 1,261 5,478 1,218 1,413 1,261 • Secured large long term contract from 2% 1% 1% 1% a leading American customer for 15% 19% OFC supply 3% 29% 2
Slide 26: Order Book Highlights
Order Book Highlights Open order book (INR Cr.) Order book spread (INR Cr.) 8,630 9,050 8,117 933 Q2FY25 Q3FY25 Q4FY25 FY26 and beyond Customer wise open order book Open order book BU wise Enterprises Digital & Technology 12% 5% Global Services - Capex 18% Optical Networking 24% 48% Citizen networks
Slide 27: Consolidated Financials: Abridged Version
Consolidated Financials: Abridged Version P&L (INR Cr.) Q3FY24 Q2 FY25 Q3 FY25 9M FY24 9M FY25 Revenue* 1,322 1,413 1,261 4,338 3,892 EBITDA* 109 151 133 559 378 EBITDA % 8.2% 10.7% 10.5% 12.9% 9.7% Depreciation 84 83 84 250 249 Key Updates EBIT* 25 68 49 309 129 • Net Debt stands at 2,195 Cr at 9MF
Slide 28: 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 29: 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 — Q3 FY2025 Earnings Presentation on 6ix

Sterlite Technologies — Q3 FY2025 Earnings Presentation

Slide 1: Earnings Presentation Q3 FY'25

Slide 2: Safe Harbour

Slide 3: Ankit Agarwal, Managing Director

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: near-term softness, robust medium to long term growth

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, 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