STL has announced its financial results for the quarter ended (QE) June 30, 2023. The company reported Rs 15.22 billion in revenues and a robust open order book of Rs 109.38 billion across its three business units – optical networking, global services, and digital. Amidst global headwinds, STL delivered a strong 42 per cent year-on-year (YoY) earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth on the back of a relentless focus on operational efficiencies, while its profit after tax PAT surged by 156 per cent. The company also delivered operational profitability with a steady EBITDA percentage of 15.4 per cent in the current quarter.
Despite a 3.4 per cent decline in the global optical fibre cable (OFC) demand in H1 CY2023, STL maintained its 11 per cent global (ex-China) OFC market share, reflective of its reputation as a preferred partner for its customers. The company continued to show momentum in its key markets and businesses while keeping customer-centricity and profitability at the core.
Optical networking business continued its focus on customer-centricity, product innovation, and operational efficiencies to deliver an EBITDA of Rs 2.46 billion (~22 per cent) in the current quarter, up by 53 per cent on a YoY basis. The business intensified its focus on EMEA, APAC, and India, to maximise growth potential across global markets. Meanwhile, global services business won strategic projects across its portfolio in Q1 FY24 with orders worth ~Rs 4.7 billion. Notable wins were with a private telecom player in India for fibre rollouts and a data centre build and manage project with a leading public sector enterprise. The focus remains on value-added services to enhance the margin profile and optimise fund involvement.
Last quarter, STL announced its foray into the multi-trillion dollar IT services industry with STL Digital. This quarter, STL Digital achieved a substantial order inflow of ~Rs 3.5 billion, reporting an open order book in excess of Rs 9 billion. With 50+ leaders and 950+ consultants, STL Digital is well-prepared to deliver top-notch solutions to its customers.
In a boost to STL’s net zero by 2030 progress, Morgan Stanley Capital International (MSCI) significantly upgraded STL’s environmental, social, and governance (ESG) rating from BBB to A, validating STL’s commitment to sustainability and responsible governance. Continuing its on-ground efforts zealously, STL reported that it has diverted over 225,000 metric tonnes of waste, reduced 23,000+ metric tonnes of tCO2e, and conserved 675,000+ cubic meters of water in the past five years.
Commenting on the results, Ankit Agarwal, managing director, STL, said, “Amidst global challenges, we continue to drive our market presence and pursue our ambition to be among the world’s top three optical companies. We are focused on long-term, sustainable growth and aim to deliver a 7 per cent to 9 per cent revenue increase this financial year while targeting a net debt to EBITDA ratio of less than 2.5 to further strengthen our financial position. With a proactive approach and an exceptional team, we embrace the future with optimism and stay agile to seize new opportunities in the dynamic market landscape.”
