STL has announced its financial results for the quarter ended September 30, 2021. The company reported a robust 30 per cent YoY revenue growth and recorded Rs 15.08 billion in revenues with approximately 43 per cent coming in from the EMEA region and approximately 12 per cent from Americas, demonstrating increased global traction for its integrated digital network solutions.

The world is witnessing massive network creation in the areas of 5G, FTTx and Open RAN with an increased focus on optical connectivity. This has led to rapid growth in fibre demand and a buoyant long-term outlook. With its global footprint, fibre capacity of 50 million fibre kilometers and planned cable capacities of 42 million fibre kilometers, STL is very well positioned to lead in this decade of network creation.

Delivering on the strategic roadmap

Over the past few quarters, STL has taken a series of strategic steps to deliver on its global plans through the company’s three growth levers – Grow optical business, globalise system integration, and build disruptive wireless solutions. This focused strategy is now yielding results.

  • Optical Networking– STL is ready for the next phase of growth with global solution centres and burgeoning demand for its technology oriented optical interconnect portfolio. Focusing on advanced optical technologies, STL also announced general availability of its pFTTx offering
  • System Integration– With its field-to-factory expertise, the company announced 2 top tier wins to the tune of GBP 42 million in the UK
  • Wireless Solutions– This quarter, STL launched Accellus, its flagship solution for 5G-ready, open and programmable networks. With its disruptive efforts in this area, STL has built formidable intellectual property with 54 patents as of Q2 FY’22

Accelerated technology innovation 

The company continued to focus heavily on technology innovation, taking big steps like investing approximately 3.5 per cent of its revenues in R&D and announcing a 5G R&D lab in the UK. STL further strengthened its patent portfolio in Q2 FY’22, taking the total patent count to 636. 5G wireless solutions and optical interconnect – STL’s strategic growth areas, contributed to more than 50 per cent of IP filings in the current quarter.

Financial Highlights (Rs billion)

P&L (Rs. Bn) Q2’ FY22 Q2’ FY21 YoY growth H1’ FY22 H1’ FY21 Half year growth
Revenue 15.08 11.06 30% 28.17 20.36 38%
EBITDA 2.69 2.12 27% 5.08 3.43 48%
PAT 1.06 0.58 81% 2.22 0.64 244%

 

Elaborating on these achievements, Ankit Agarwal, managing director, STL remarked, “With our eyes on the future, we have been taking some formative steps over the past few quarters. We have elevated our global leadership team, executed strategic M&A and launched disruptive solutions for programmable, optical and wireless networks. These steps are now translating into revenue growth. With our robust optical, wireless and system integration capabilities, we are all set to deliver on the new architecture of digital networks and take the power of connectivity to billions across the globe.”