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Sterlite Technologies Q4 Review - Mixed Operating Performance In The Quarter: Yes Securities

Sterlite Technologies Q4 Review - Mixed Operating Performance In The Quarter: Yes Securities

<div class="paragraphs"><p>Racks of servers at a data center. (Photographer: Andrey Rudkov/Bloomberg)</p></div>
Racks of servers at a data center. (Photographer: Andrey Rudkov/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.

Yes Securities Report

Sterlite Technologies Ltd.'s reported an overall, mixed performance for the quarter. While, revenue growth was above estimate, Ebitda margin was below estimate on higher raw material, freight cost and other investments in UK business.

Sterlite Technologies is expected to benefit from multi‐year digital creation cycle led by 5G, FTTx and fibre demand from hyper scalars. Also, optical fibre cable prices are on the rise globally and should benefit the company.

It has been gaining market share in global optical fibre cable market. The rise in revenue mix from international clients is in right direction. Besides optical fiber business, the focus on system integration business and wireless solutions would help to drive revenue growth going ahead.

It is expected that Ebitda margin should rise to normalised level by H2 FY23, led by price increase and other cost optimisation measures. Capex intensity will moderate going ahead and it will keep debt under control.

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Yes Securities Sterlite Technologies Q4FY22.pdf

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