STL [NSE: STLTECH], an industry-leading integrator of digital networks, today announced the consolidated financial results for its fourth quarter and financial year ending March 31, 2021. The company reported Rs. 4,825 crore in revenue and an order book of over Rs. 10,700 crore, backed by large global deals.
FY21- Beginning of the next decade of digital network creation
2020 witnessed telcos committing billions of dollars towards strengthening digital networks. The need for high bandwidth and low latency added impetus to 5G and FTTx plans. This accelerated the shift towards Open Networking with multiple global trials for Open RAN. 2021 is set to usher in the decade of network creation; with 5G, FTTx and O-RAN at the centre stage. These mega trends are expected to boost the optical demand, early signs of which are already visible.
STL built capabilities and won global deals
As investments in digital networks accelerated in 2020, STL continued to perform and grow by delivering robust optical, system integration and virtualised access solutions. Fuelled by global expansion and new product launches, STL enhanced its addressable market to $40bn.
In Q4 FY’21, STL demonstrated sequential QoQ revenue growth, while strengthening its core optical solutions and expanding its wireless footprint.
Some key highlights:
- Won marquee deals – STL won multi-year, multi-million global deals, such as:
- A three-year strategic collaboration with Openreach to provide millions of kms of optical fibre cable to help connect UK with a full-fibre network
- ~$100Mn deals in the MEA region – for building future-ready digital networks
- Partnership with Airtel to build optical network across 10 circles
- Exhibited strong growth in OFC volume and Optical Interconnect business – STL grew its OFC volume by more than 35% in FY’21. Optotec’s interconnect products are now integrated into its Opticonn solution
- Grew Patent portfolio by 105%– With 191 filings in FY’21, STL’s global patents reached 569, also adding the first 5G patent
- Developed 5G and Open source products – STL developed hardware plus software offerings including Garuda indoor small cells and 5G radios and tested programmable FTTx with a large Asian telco
- Delivered exponentially despite the pandemic – With technology excellence, STL took Project Varun (Navy Communication Network) and Mahanet (Rural broadband) to 92% and 98% completion, respectively
- Hired industry stalwarts globally – across the US, the UK, Singapore and India
Achieved glowing industry recognition for disruptive technologies
- Recognized by BCG – Top 100 Tech Challengers for the next generation of innovation in emerging countries
- Featured in STL Partners’ prestigious lists – ‘10 next-gen RAN solutions providers’ and ‘60 Edge computing companies’ to watch out for
- Awarded by DuPont – Safety & Sustainability for zero waste to landfill
Demonstrated revenue growth and robust financials
STL closed the year with 27% YoY revenue growth, and exports at 42%. Here are some key financial highlights:
Three levers will fuel future growth
Going forward, our three levers will drive growth; leveraging the continued success of Optical Connectivity solutions, Networks Services and building a new Access Solutions business
- Growing OFC volume and Optical Interconnect business
- Building a strong portfolio of open-source Access Solutions
- Taking the System Integration business global while scaling in India
“In current times, our topmost priority is keeping our employees and communities safe while continuing to engage deeply with our customers,” said Dr. Anand Agarwal, Group CEO, STL. “The next decade of network creation has begun, with accelerated investments towards 5G, FTTx, and O-RAN. STL has used this momentum as a springboard to enhance its capabilities and deliver. Going forward, we will continue to create value for our customers and deliver growth for our shareholders with a razor-sharp focus on technology innovation, global expansion, and deep customer engagement.”