Sterlite Technologies Limited, a leading global provider of transmission solutions for the power and telecom industries, announced its results for the quarter and nine-months ended December 31, 2010.

Financial highlights for the nine months ended December 31 2010

  • Net revenues of Rs 15.80 billion, EBITDA of Rs 2.33 billion and net profit of Rs 1.30 billion
  • The company maintained operating profitability at 14.7 per cent for the nine-month period
  • Revenue from international sales during the period accounts for Rs 4.74 billion, which is about 30 per cent of net revenues.
  • Significant progress was made in the Indian private sector for telecom and power businesses, with about 41 per cent of revenues earned from this industry segment
  • Sales to Europe and the Americas accounted for about 43 per cent of the total international sales. Sales to China and Africa were about 37 per cent of the total international sales
  • The power business earned revenues of Rs 10.92 billion in the nine-month period; an EBIDTA margin of 9.1 per cent
  • The telecom business earned revenues of Rs 4.89 billion in the nine-month period; an EBIDTA margin of 27.3 per cent.
  • We start the Q4 FY11 with a strong order book of about Rs 17 billion.

Business highlights in Q3 FY11

  • Good Tier-1 clients added and strategic product approvals received for all businesses, across geographies.
  • With the expanded capacities coming online, optical fiber and fiber optic cables business did the highest-ever sales volumes.
  • Sterlite and Jiangsu Tongguang Communication Company, agreed to form a joint venture company in Haimen, Jiangsu Province, China to manufacture, market and distribute optical fiber used in the production of fiber optic cables.
  • Awards: ’10th Greentech Environmental Excellence Award 2010′, ‘5th Employer Branding Awards 2010-11’, ‘Spotlight Award 2010’ for Sterlite’s Annual Report 2009-10 from LACP (League of American Communication Professionals)

 Update of capacity expansions

  • The capacity expansion project for power conductors, from 115,000 MT to 160,000 MT, has been completed and the Company should see the utilization of this capacity in the coming quarters.
  • The capacity expansion project for optical fibers, from 12 mn-km to 20 mn-km, is on track for completion within the scheduled timeline.
Pravin Agarwal, whole-time director, Sterlite Technologies says, “Our company has a business model for sustainable growth and an effective strategy and management team is in place to drive our business. I am confident that as a company, we are resilient to withstand the near-term challenges posed by a dynamic environment. We are working actively towards ensuring a return to our normal performance, with expanded capacities and good order book for FY12 and beyond.”