Sterlite Technologies (STL) reported a consolidated net profit of Rs 50 crore in Q3 FY23 as against a net loss of Rs 138 crore recorded in Q3 FY22.
Revenue from operations surged 46.23% to Rs 1,882 crore in the quarter ended 31 December 2022 from Rs 1,287 crore posted in Q3 FY22.
The company reported a profit before tax of Rs 97 crore in Q3 FY23 as compared to pre tax loss of Rs 142 crore registered in the same period a year ago.
EBITDA surged to Rs 252 crore in Q3 FY23 as against Rs 8 crore posted in Q3 FY22. EBITDA margin climbed to 13% in Q3 FY23 as against 1% reported in the corresponding quarter previous year.
The company said that the fibre dense networks have become absolutely critical for both digital inclusion and advanced use cases. Service providers across the globe want to take more fibre, faster to their customers. In India, the 5G rollout is in full steam and presents the need for rapid fiberisation.
STL is constantly investing in fundamental capabilities and R&D to pack in more capacity and innovation into these optical network builds. The company is driving towards scalable growth in the Optical business and sustainable revenue streams in the Global Services business, it added.
During the quarter, the company's order book stood at Rs 12,054 crore on the back of its capability to engineer unique solutions for service providers, the firm signed multi-million, multi-year contracts with top-tier service providers.
The firm stated that it continued the positive momentum while focusing on prudent capital allocation and profitability. Specifically in optical business, the company recorded a 78% YoY increase in revenue on the back of customer wins and better realisations.
STL said that it will keep a close eye on its ambition to become Net-zero by 2030, STL concerted its efforts on sustainable operations by reducing its carbon emissions by 6,400 tCO2e, and diverting 33,000+ MT of waste from landfills. It also continued to press forward on water stewardship initiatives by harvesting and recycling of more than 125,000 m of water.
Ankit Agarwal, managing director of STL said Our performance this quarter has been strong. Sharp focus on cash and profitability, and calibrated exits from sub-scale businesses have poised us for long-term growth. I am excited about the market momentum and the pace of customer wins in our key markets. As we look ahead, I see technology innovation and R&D playing a pivotal role in our journey to become one of the top optical players in the world. Quarter four and beyond, we will continue to prioritise growth areas, optimise our capital structure, and execute with discipline.
Meanwhile, the company's board has approved the proposal of fund raising upto Rs 500 crore through the issuance of such number of fully paid-up equity shares / partly paid-up equity shares of face value of Rs 2 each, by way of a rights issue to the existing shareholders of the company. The promoter and promoter group of the company have confirmed that they will subscribe to the full extent of their aggregate rights entitlement.
Sterlite Technologies is a leading end-to-end solutions provider for global digital networks.
Shares of Sterlite Technologies fell 2.12% to Rs 175.75 on the BSE.
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