STL’s annual growth jumps 19%; reports highest ever revenue 

– 55 % of annual revenue from focus markets of US and EMEA
– Robust operational performance across businesses
– Margin softening due to inflationary pressures

STL [https://www.stl.tech/] [NSE: STLTECH], an industry leading integrator of digital networks, announced consolidated financial results for its fourth quarter and financial year ending March 31, 2022. The company recorded a robust order book of USD Mn 1,568 and highest ever revenue of USD Mn 775.

An unprecedented multi-year network build cycle is driving 5G, FTTx, data centre and Open RAN deployments. STL has been investing in world-class technology and talent and is well positioned to meet this demand. Pursuing its global ambition, STL reached 6% market share in Americas in its first year of operations and reported 25% share in the European market, up from 16% in FY21. FY22 was pivotal for STL as it announced manufacturing units in the UK and US and launched ‘All-in 5G’ solutions for converged and open source networks. It built a solid global leadership team to drive non-linear growth across businesses.

Key wins for FY22 driven by sharp focus on 3 growth levers:

– Grow optical business: Apart from delivering on its planned 7Mn fKM capacity enhancement in India and announcing plans for UK and US, STL made big strides in the Optical Interconnect business, taking the attach rate from 3% to 11%
– Globalise system integration: While continuing the momentum in India, STL launched its Global Services business in the UK with a combination of technology and trained manpower and clocked an open order book of USD Mn 135
– Build access solutions: This was a strong foundational year for its newest business as STL announced general availability for 3 of 5 products as a part of its open source and programmable Accellus solution

Key Performance Highlights:

– Diversified global customer wins – Netomnia, Openreach, Vocus, Meta Connectivity, Telecom Italia, PGCIL, Power & Tel and Giganet were some key customer wins for FY22
– Industry-leading technology innovation – STL filed 57 patents in Q4, taking its global patent portfolio to 733. 60% of the patents filed in FY22 are in the core optical business
– Strong ESG focus – STL continued its ESG focus with social programs impacting 1.37 Mn people. In FY22 STL planted ~169,000 trees and committed to net-zero emissions by 2030. It also won prestigious awards including The Global CSR, and Green World Awards
– Best-in-class people practices – For the third year in a row, STL won the Great Place to Work certification, a significant milestone in its journey of building a world class, global organisation

Financial highlights (USD Mn)

P&L (INR Cr.) FY’22 FY’21
Revenue 5,754 4,825
EBITDA 594 854
PAT 62 275

Commenting on the results, Ankit Agarwal, Managing Director, STL, said, “During FY22, we delivered exceptional revenue growth and grew significantly in our focus markets of US and Europe. We continue to witness inflationary headwinds as we start FY23 and are taking actions to mitigate the impact on margins. We are clearly in a multi-year network build cycle. I am confident that with a solid leadership in place, we will double down on technology innovation, operational excellence, and customer centricity to achieve 25% growth and deliver on our larger purpose of transforming billions of lives through digital networks.”

About STL:

STL is a leading integrator of digital networks providing All-in 5G solutions. Our capabilities across optical networking, services, software, and wireless connectivity place us amongst the top optical players in the world. These capabilities are built on converged architectures helping telcos, cloud companies, citizen networks, and large enterprises deliver next-gen experiences to their customers. STL partners with service providers globally in achieving a green and sustainable digital future in alignment with UN SDG goals.

STL has a strong global presence in India, Italy, the UK, the US, China, and Brazil. Read more [https://www.stl.tech/], Contact us [https://www.stl.tech/press_release.html].

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Source: Sterlite Technologies Ltd. (STL)