Telecom - Equipment & Accessories
Sterlite Technologies Limited, together with its subsidiaries manufactures and sells telecom products in India and internationally. It operates through Optical Networking Business, Global Service Business, and Digital and Technology Solutions segments. The company designs and manufactures optical fibres, optical fibre cables, specialty cables, and optical interconnect products. It also offers fiber roll out, end to end system integration, and network deployment, network engineering, network fulfillment, assurance and field services; data center networks, cloud services, RAN, and security services; and digital and technology solutions, which enables digital transformation of telcos and enterprises. In addition, the company provides enterprise LAN solutions; access network distribution solutions; and operates Neox communication platform. Sterlite Technologies Limited was founded in 1988 and is based in Pune, India. Sterlite Technologies Limited is a subsidiary of Twin Star Overseas Ltd.
Balance Sheet: Reasonably good balance sheet.
Smart Money: Smart money looks to be reducing their stake in the stock.
Growth: Declining Revenues! Trailing 12m revenue has fallen by -19.3% in past one year. In past three years, revenues have changed by -11%.
Technicals: SharesGuru indicator is Bearish.
Momentum: Stock has a weak negative price momentum.
Dilution: Company has a tendency to dilute it's stock investors.
Comprehensive comparison against sector averages
STLTECH metrics compared to Telecom
Category | STLTECH | Telecom |
---|---|---|
PE | -19.83 | 569.38 |
PS | 0.66 | 2.52 |
Growth | -19.3 % | 62.8 % |
STLTECH vs Telecom (2021 - 2025)
Analysis of Sterlite Tech's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
Optical networking business | 71.6% | 924 Cr |
Global Service Business | 22.4% | 289 Cr |
Digital and technology solutions | 6.0% | 77 Cr |
Total | 1.3 kCr |
Valuation | |
---|---|
Market Cap | 3.33 kCr |
Price/Earnings (Trailing) | -19.83 |
Price/Sales (Trailing) | 0.66 |
EV/EBITDA | 7.5 |
Price/Free Cashflow | 10.96 |
MarketCap/EBT | -15.42 |
Fundamentals | |
---|---|
Revenue (TTM) | 5.07 kCr |
Rev. Growth (Yr) | -5.59% |
Rev. Growth (Qtr) | -10.78% |
Earnings (TTM) | -168 Cr |
Earnings Growth (Yr) | 59.32% |
Earnings Growth (Qtr) | -71.43% |
Profitability | |
---|---|
Operating Margin | -4.26% |
EBT Margin | -4.26% |
Return on Equity | -5.72% |
Return on Assets | -1.9% |
Free Cashflow Yield | 9.13% |
Investor Care | |
---|---|
Dividend Yield | 1.28% |
Dividend/Share (TTM) | 1.5 |
Shares Dilution (1Y) | 22.24% |
Diluted EPS (TTM) | -3.8 |
Financial Health | |
---|---|
Current Ratio | 1.06 |
Debt/Equity | 0.9 |
Debt/Cashflow | 0.3 |
Summary of Sterlite Tech's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
Management Outlook:
STL's management anticipates robust growth in optical networking driven by increasing global fiber demand, particularly in North America (BEAD program) and India (BharatNet), with CRU projecting 4-5% annual global fiber growth (8.5% ex-China) through 2028. Data center demand, fueled by AI-driven GPU infrastructure, is a key focus, contributing 22% of Q3 revenue. The company aims to enhance market share, connectivity attach rates (sustained >20%), and expand its AI data center portfolio.
Major Points:
Key Catalysts: BEAD rollout, BharatNet execution, data center product scaling, and demerger completion.
Last updated: Jan 25
Question 1 (Nikhil Chaudhary): Can you provide details on STL's positioning in the data center market, especially capabilities versus competitors, and break down the 22% revenue contribution from data center/enterprise?
Answer: STL sees significant growth in data centers driven by AI/GPU demand, targeting India's projected 2-3GW capacity expansion. The company is building end-to-end solutions (fiber/copper) for AI-driven data centers. The 22% revenue includes enterprise and data center sales; specifics aren't split for competitiveness.
Question 2 (Nikhil Chaudhary): What is the CY25 demand outlook for optical fiber, and any updates on BEAD program delays?
Answer: BEAD-related demand in the US is expected from H2 CY25, with major growth in 2026. North America's fiber demand could grow to 120M fkm annually. India's BharatNet and European copper-to-fiber transitions will drive growth. Inventory normalization is underway, with improved customer inquiries.
Question 3 (Nikhil Chaudhary): How did optical/digital businesses sustain margins despite lower revenue?
Answer: Optical margins improved via cost optimization. Services EBITDA rose due to project selectivity. Digital's first EBITDA profit stemmed from higher-margin contracts and operational efficiency.
Question 4 (Sunny Gosar): Will BEAD drive all US telco capex, or is there dual growth from BEAD and organic demand?
Answer: BEAD, telco expansions (AT&T/Verizon), and AI data centers will drive demand. BEAD's stringent "Made in USA" requirements offer pricing premiums. North America's fiber demand could reach 120M fkm by 2026.
Question 5 (Sunny Gosar): When will BharatNet Jammu-Kashmir execution start?
Answer: Purchase orders are expected by Q1 FY26, with execution starting after approvals. The project includes 3-year deployment and 10-year maintenance.
Question 6 (Sunny Gosar): Why hasn't interest cost reduced proportionally to net debt?
Answer: Finance costs include bank charges beyond interest. YTD finance costs fell by Rs.50 crore. Further reductions are expected as debt declines.
Question 7 (Arun Malhotra): How will supply/demand dynamics and pricing affect margins?
Answer: Limited competition in data centers and BEAD's premium pricing will boost margins. BharatNet and India's demand recovery will aid realizations.
Question 8 (Arun Malhotra): Why have revenues declined despite demand optimism?
Answer: Lower US/Europe demand and inventory corrections impacted volumes. Cost cuts stabilized margins; utilization improvements will drive future growth.
Question 9 (Arun Malhotra): What is "attach rate," and why is it significant?
Answer: Attach rate (20-22%) measures connectivity product sales per cable dollar. Higher-margin connectivity boosts profitability as demand grows.
Question 10 (Rishikesh Oza): What is FY26 revenue/margin guidance?
Answer: STL aims to be a top-3 global player via optical growth, services demerger, and digital scaling. No specific guidance, but debt reduction and cash generation are priorities.
Question 11 (Vipul Kumar Shah): What is STL's capacity/utilization, and when will profitability return?
Answer: Current utilization is ~50%. EBITDA margins of 20% require 70-75% utilization. US capacity focuses on cables; realizations are 20-30% below 2019 peaks but expected to recover with demand.
Understand Sterlite Tech ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
TWIN STAR OVERSEAS LTD | 42.92% |
BANDHAN FLEXI CAP FUND | 5.33% |
HDFC MUTUAL FUND - HDFC DIVIDEND YIELD FUND | 3.44% |
VEDANTA LIMITED | 0.98% |
ANKIT AGARWAL | 0.17% |
NAVIN AGARWAL | 0.06% |
PRAVIN AGARWAL | 0.01% |
PRATIK PRAVIN AGARWAL | 0.01% |
Anil Kumar Agarwal | 0% |
Pravin Agarwal Family Trust | 0% |
JYOTI AGARWAL | 0% |
RUCHIRA AGARWAL | 0% |
SONAKSHI AGARWAL | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Sterlite Tech against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
POLYCAB | Polycab IndiaCables - Electricals | 82.84 kCr | 21.23 kCr | +6.91% | -2.24% | 44.42 | 3.9 | +24.92% | +11.16% |
TEJASNET | Tejas NetworksTelecom - Equipment & Accessories | 15.09 kCr | 8.39 kCr | +14.73% | -17.84% | 22.69 | 1.8 | +453.25% | +798.13% |
HFCL | HFCLTelecom - Infrastructure | 11.71 kCr | 4.65 kCr | +1.73% | -16.43% | 31.99 | 2.52 | -0.33% | +19.25% |
VINDHYATEL | Vindhya TelelinksTelecom - Infrastructure | 1.61 kCr | 4.14 kCr | +5.52% | -48.65% | 7.99 | 0.39 | -1.21% | -26.99% |
FOCUS | Focus Lighting and FixturesComputers - Software & Consulting | 60.77 Cr | 204.76 Cr | +27.72% | -38.29% | 110.8 | 2.84 | -2.96% | -27.21% |