Sterlite Technologies posts 13.6% rise in Dec quarter profit to Rs 50 cr

Optical and digital solutions company Sterlite Technologies on Friday reported a net profit of Rs 50 crore for the December 2022 quarter against a loss of Rs 138 crore a year ago.

The loss in Q3 FY22 included a one-time provision, a top company official explained.

The revenue from operations for the just-ended quarter stood at Rs 1,882 crore, which on a year-on-year basis was about 46 per cent higher than the Q3 FY22.

In a statement on the Q3 scorecard, STL said it demonstrated a sharp focus on growth areas, operational efficiencies and strategic capital allocation, resulting in strong financial performance.

"Company revenues grew by 46 per cent on a year-on-year basis, and 28 per cent on YTD (year-till-date) basis, and EBITDA increased by 17 per cent on a YTD basis," STL said.

It recorded a net profit of Rs 50 crore in Q3 FY23, a turnaround compared to the losses of Rs 138 crore in the same period the previous year.

Seen sequentially, the net profit was up 13.6 per cent from Rs 44 crore in the September 2022 quarter.

The order book at Rs 12,054 crore was "robust", it said, adding that on the back of its capability to engineer unique solutions for service providers, the company signed multi-million, multi-year contracts with top-tier service providers.

STL Managing Director Ankit Agarwal said a sharp focus on cash and profitability, and calibrated exits from sub-scale businesses have poised the company 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," Agarwal said.

The company will continue to prioritise growth areas, optimise our capital structure and execute with discipline during Q4 and beyond.

Asked about the factors for the dramatic turnaround in performance for Q3 FY23, Agarwal said it is on account of one-time provision entailing contracts in the services business with regard to certain government projects.

"We had taken one-time provisions last time...that was on account of our contracts in the services business where we had certain government projects that we felt from a prudent accounting measure...we would take the provision. Those are still provisions that continue in our books," Agarwal told PTI.