STL reports Q3 FY25 results; improves margins with a robust order book

MUMBAI, India, Jan. 17, 2025 /PRNewswire/ -- STL (NSE: STLTECH), a leading optical and digital solutions company, today announced its financial results for the quarter ended 31 December 2024. The Company reported revenues of INR 1,261 Crore for the quarter and a robust open order book of INR 9,050 Crore across its three business units - Optical Networking, Global Services, and Digital.

STL showcased strong resilience amidst seasonal demand softness. With a focus on customer centricity, product innovation, and cost leadership, STL delivered improved EBITDA margins Y-o-Y and recorded robust order booking this quarter.

Our ability to deliver purpose-engineered solutions, including Optical Fibre Cable (OFC) and Optical Connectivity (OC), has driven the attach rate to 21% in the current quarter. The Optical Networking Business (ONB) achieved ~8% Y-o-Y top-line growth with improved EBITDA margins. The Business saw significant wins from its diversified customer segment across geographies, including the US and Europe. The Company also won orders from key sectors like Railways in Europe and Fixed Wireless Access (FWA) deployment projects in India. With 10 manufacturing plants located closer to the key markets across 4 continents, STL is well-positioned to capture the future growth potential.

Some key highlights for Q3 FY25

• Integrated Data Centre solutions - STL is uniquely positioned to provide integrated connectivity solutions for GPU-dense data centres in India, featuring optical cables, connectivity, and interconnect offerings. STL recorded ~22% of its quarterly ONB revenues from the Data Centre and Enterprise suite of products and is progressing steadily towards achieving significant revenues in the medium-term.
• New product development - STL continues to innovate for its customers, addressing industry challenges such as limited duct space, rapid deployment, and simplified installation processes. By incorporating an AI-led Data Centre portfolio, Fibre Optic Sensing (FOS) solutions with embedded NVIDIA Edge AI, and introducing 7-core Multicore Fibre (MCF) for Quantum Computing and Silicon Photonics, STL has demonstrated its strong R&D capability. With continued focus on next-generation connectivity solutions and customer-centric innovations, STL's patent count stands at 740.
• STL Global Services Business won the J&K package of BharatNet, valued at ~INR 2,600 Crore. The demerger continues to progress as per the timeline.
• STL Digital achieved EBITDA breakeven, with a strong focus on customer satisfaction, delivery excellence, and profitable growth. STL Digital seamlessly executed the VRISE program for Vedanta, migrating their 8 business units to a unified SAP Cloud platform in a record time of 6.5 months.

Financial highlights (INR Cr)

STL installed 4,523 kW solar panels across its plants in Aurangabad and Silvassa to reduce its Carbon Footprint. Our Hybrid healthcare program, Swashthya Suraksha, across Aurangabad, Gadhchiroli, and Nandurbar districts, impacted more than 26 lakh lives. The Company continues to focus on other initiatives to promote a circular economy and maintain the ecosystem in our communities.

"We are well positioned to capitalise on opportunities in the evolving market landscape with our focus on new product development, diversified customer segments and key markets across the globe. Our Data Centre and Enterprise product portfolio continues to gain higher traction, driving increased customer interest and market adoption. We will continue to drive value for our customers, strengthening our position as leaders in cost efficiency and product innovation," said Ankit Agarwal, Managing Director, STL.

About STL - Sterlite Technologies Ltd:

STL is a leading global optical and digital solutions company providing advanced offerings to build 5G, Rural, FTTx, Enterprise and Data Centre networks. Read more, Contact us, stl.tech | Twitter | LinkedIn| YouTube

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