STL, a global data networks innovator, today announced financial results for the third quarter ending December 31, 2019. The company continues to grow its healthy order book of Rs. 8,535 crore with a strong growth outlook.
Data growth is accelerating. Global data consumption will grow by 5-6x times in the next 5 years as all users and enterprise applications become data driven and the next 50% of the world comes online. Leading network creators are investing in this future.
- 5G commercial launches are already underway across major markets such as China, and the US, followed by large scale 5G roll outs in Europe expected by 2020.
- Global cloud companies are investing more than ever towards building massive Hyperscale and Edge data centres.
Continuing the relentless pursuit for driving customer value
- Scaling up on execution: Completed 65% of Indian Navy project and established the first ever Data Centre for Navy’s seamless transition to new-age applications. 55% of Mahanet project delivered with network infrastructure deployment to over 2000 gram panchayats.
- Winning new opportunities: Awarded T-Fiber project worth about Rs. 1100 crore to deliver digital infrastructure to 6 million rural citizens of Telangana and selected by Telekom Albania for its multi-year, multi-million dollar digital transformation program.
- Focusing on environment sustainability: Continued commitment to sustainability with diversion improvement at Waluj plant from 95% to 97% and plant certified as “Near to Zero Waste to Landfill”.
- Gaining industry recognition: Awarded “Best in Class Supply Chain Sustainability” Winning award in ELSC Leadership Awards 2019, 1st prize in CII’s SCALE 2019 National Award- Supply Chain and Logistics Excellence, and SAP ACE and Uipath most innovative Bot award.
Enhancing technology prowess
- Strengthening Capabilities: Acquired 12.8% stake in ASOCS, a pioneer in virtual Radio Access Networks (vRAN) for creating cutting edge 5G solutions and empowering customers to build best in class network.
- Extending solution suite: Leveraged IDS UK’s Inside Data Centre design and deployment capability for expanding reach with global customers.
- Embracing 5G: Collaborated with IIT- Madras for 5G advancements in India and to realise the enormous potential of 5G for customers and industry in India and global markets.
Q3FY20 Financial Highlights
Revenue: Rs. 1,203 crore
EBITDA: Rs. 247 crore
PAT: Rs. 91 crore (excluding exception items)
Order Book: Rs. 8,535 crore
Exports at 31% of revenue
Commenting on the results, Anand Agarwal, Group CEO, STL, said, “Amidst long term data network growth, the market environment in 2019 witnessed uncertainty and sluggish growth on account of the economic downturn. Within this business environment globally, we increased our order book over the last quarter and have shown a 21% revenue growth (9-months YTD) as compared to last year. Our transformation from an optical fiber company to an end-to-end data networks integrator has significantly increased our overall addressable market. We continue to be extremely bullish and focused on our data network integration capabilities by investing in growth areas such as Data Centers and Wireless solutions.”
To know more about the company’s strategy and Q3, FY20 results, please log in to Analyst Call today at 16.30 IST.