Sterlite Tech Q3 results: Loss at Rs 57 crore amid optical demand headwinds

Optical and digital solutions company Sterlite Technologies (STL) on Thursday reported a loss of Rs 57 crore on a consolidated basis in December quarter 2023-24, hit by ongoing optical demand headwinds, especially in the US and parts of Europe.

The company had posted a net profit of Rs 51 crore in the year-ago period.

Revenue from operations was Rs 1,322 crore in Q3FY24, the company said in a regulatory filing. Revenue stood at Rs 1,883 crore in the year-ago period.

EBITDA declined sequentially to Rs 109 crore from Rs 216 crore.

"The company reported a sequential decline in revenue and EBITDA in Q3 FY24 amidst ongoing optical demand headwinds, especially in the US and parts of Europe," STL said in a release.

Ankit Agarwal, Managing Director of STL said the downturn is temporary.

While this downturn is temporary, the cost base and capabilities that we have built around product design, quality, manufacturing presence, and sustainability will reap benefits far into the future," Agarwal said.

He added: Regardless of the market cycle, we are as customer-centric as ever. I am confident that once the optical demand is normalised, we will hit the ground running and fast-track towards becoming one of the top 3 optical players in the world."

According to a media release, the company's order book stands at Rs 9,849 crore across its three business units- Optical Networking, Global Services, and Digital.

The release said STL is using this period to become more lean and agile and establish an industry-leading cost model.

Sterlite Technologies is a global optical and digital solutions company providing advanced offerings to build 5G, Rural, FTTx, Enterprise, and Data Centre networks.