Sterlite Technologies Limited (STL) disclosed a consolidated loss of Rs 82 crore for the fourth quarter ending March 31, 2024, attributing it to a downturn in the optical networking business. This marked a stark contrast to the profit of Rs 63 crore recorded in the same period last year.
During the quarter, the company’s consolidated revenue from operations witnessed a significant decline of about 39 percent, amounting to Rs 1,140 crore compared to Rs 1,872 crore in the corresponding quarter of March 2023.
Ankit Agarwal, Managing Director of STL, commented, “FY24 had its challenges, but we were resilient in actioning our priorities on customer, cost, and cash. We see the market turning gradually, and early signs of this are visible in our customer discussions and order volumes.”
STL emphasized the recent successful Rs 1,000 crore fundraise through a Qualified Institutional Placement (QIP), signaling strong investor confidence in its growth trajectory.
Furthermore, the company utilized the lean industry period to fortify its capabilities across various domains, including its cost structure, balance sheet, global operations, and product portfolio.
For the fiscal year ended March 31, 2024, STL reported a consolidated loss of Rs 57 crore, a sharp contrast to the profit of Rs 127 crore in the previous fiscal year. The optical networking business revenue nearly halved to Rs 777 crore during the quarter, down from Rs 1,505 crore in the March 2023 quarter. Similarly, annual revenue from the optical networking business witnessed a decline of about 30 percent.
Looking ahead, Agarwal emphasized the significance of AI in the fiber space, foreseeing 5G, fiber to the home, and data center build-outs as the primary drivers of fiberization in the years to come.
STL has completed its capex investment cycle and commenced operations in its Palmetto Plant in South Carolina, United States. Additionally, it secured its first set of large order wins in North America and expanded its customer base globally, forming deep partnerships with leading service providers across various regions.
Moreover, the company witnessed rapid growth in its digital business, achieving a 4.25 times year-on-year revenue increase and forging strategic partnerships with industry giants like SAP and Google while acquiring 25 global customers.
