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ICICI Direct: Sterlite Technologies’ Demand Recovery Key For Rerating  

ICICI Direct: Sterlite Technologies’ Demand Recovery Key For Rerating

Green LED lights and rows of fibre optic cables are seen feeding into a computer server inside a comms room at an office. (Photographer: Simon Dawson/Bloomberg)
Green LED lights and rows of fibre optic cables are seen feeding into a computer server inside a comms room at an office. (Photographer: Simon Dawson/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Sterlite Technologies Ltd.’s Q2 FY21 performance was weak, albeit much better sequentially, on the operating front as expected, which is reflective of the weak demand in the product segment and residual Covid-19 led execution challenges in solutions /services business.

Revenues came in at Rs 1160 crore, down 14.7% YoY with product forming approximately 65% (implying approximately 11% decline YoY) and services 35% of the topline, which would have declined approximately 20% YoY as per our calculations.

Ebitda was at Rs 202 crore, down approximately 30% YoY, with margins at 17.5%, down 376 basis points YoY, impacted by negative operating leverage on account of revenues decline.

Click on the attachment to read the full report:

ICICI Direct Sterlite Tech Q2FY21 Result Update.pdf

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