Q1 2025 Sterlite Technologies Ltd Earnings Call Transcript
Key Points
- Sterlite Technologies Ltd (BOM:532374) achieved a highest-ever optical connectivity attach rate of 23%, indicating strong growth in this segment.
- The company has identified AI data centers as a future growth area, aiming for 25% of revenue from this segment in the medium term.
- Significant progress in ESG initiatives, including a commitment to being a net-zero emission organization by 2030 and winning over 100 ESG awards.
- Successful cost optimization measures have led to a quarter-on-quarter improvement in EBITDA margins.
- The company has reduced its net debt by INR 769 crores, showcasing effective financial management.
- Global OFC consumption declined by 7% in 2023, with a 12% decline in North America, impacting overall demand.
- Inventory levels in the U.S. and Europe remain high, affecting factory utilization and leading to lower margins.
- The EBITDA loss for the STL Digital business stands at INR 17 crores, indicating challenges in this segment.
- Freight costs have increased by 2-3%, impacting overall profitability.
- The company faces potential challenges from provisional anti-dumping duties imposed by the European Commission, which could affect its competitive position.
Ladies and gentlemen, good day, and welcome to the STL Q1 FY25 Earnings Conference Call. I'm Chetan Wani, and I'm responsible for Investor Relations at STL. Today, we are joined by Ankit Agarwal, Managing Director and CEO Optical Networking business, STL; and Tushar Shroff; Group CFO, STL to walk us through the Q1 FY25 results and to answer any questions that you may have. (Operator Instructions) You can also download a copy of the presentation from our website that is www.stl.tech. You may please note that this call is being recorded.
Before we proceed with this call, I would like to add that some elements of today's presentation may be forward-looking in nature and must be viewed in relation to the risk pertaining to the business. The safe harbor clause indicated in the presentation also applies to this conference call. I now hand over the call to Ankit Agarwal for opening remarks. Over to you, Ankit.
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