Sterlite Technologies Q2 Results Review - Sequentially Improved Operating Performance: Yes Securities

Yes Securities Report

Sterlite Technologies Ltd. reported sequentially improved performance for the quarter. Both, the sequential revenue growth and Ebitda margin were as per expectation.

It reported revenue growth of 12.3% QoQ, led by 15.5% QoQ increase in Global networking segment, and 10.5% QoQ increase in Global Services segment.

There was sequential improvement in Ebitda margin(up 255 basis points QoQ) led by lower logistics cost and better realization.

Order book grew 4.4% QoQ to Rs 117 bllion.

Sterlite Tech is expected to benefit from multi‐year digital creation cycle led by 5G, fibre to the x and fibre demand from hyperscalars.

Also, optical fibre cable prices are on the rise globally and should benefit Sterlite Technologies. It has been gaining market share in global OFC market.

The rise in revenue mix from international clients is in right direction. We expect Ebitda margin to improve going ahead led by easing off certain cost pressure related to raw material and logistics.

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