Sterlite Tech posts Rs 20-cr loss in June quarter

Sterlite’s revenue grew 20.30% to Rs 1,575 crore year-on-year (y-o-y) with 62% of revenue coming from Europe and the US. STL reported one of the highest quarterly order books at Rs 2,700 crore during the first quarter with the total order book at Rs 11,200 crore.

Sterlite Tech posts Rs 20-cr loss in June quarter
Around 60% to 65% of STL's revenues come from outside India and a large part of it from the US market.

Digital network integrator Sterlite Technologies (STL) on Monday reported a consolidated net loss of Rs 20 crore for the June quarter on higher logistics and input costs compared to a profit of Rs 115.75 crore during the same quarter last year.

Sterlite’s revenue grew 20.30% to Rs 1,575 crore year-on-year (y-o-y) with 62% of revenue coming from Europe and the US. STL reported one of the highest quarterly order books at Rs 2,700 crore during the first quarter with the total order book at Rs 11,200 crore.

Ankit Agarwal, managing director, Sterlite Tech, said they had seen a significant cost increase in container costs and as a lot of the products were getting shipped to the US and Europe, they were impacted by it. He expects improvement from the second quarter onwards with some cost reduction and a 9-10% cost increase passed on to customers in the US.

Around 60% to 65% of STL’s revenues come from outside India and a large part of it from the US market. Further, fibre prices had improved over the last two to three quarters and were starting to stabilise, Agarwal said. On the debt front, the company had plans to reduce it from the Rs 3,200 crore level to Rs 2,700-2,800 crore. STL was also planning to divest non-core businesses in its portfolio.

STL plans to expand fibre cable capacity from 33 million fibre km to 42 million fibre km. The company is setting up a manufacturing facility in the US in South Carolina with a capacity of five million fibre km which is expected to start operations in Q3FY23.

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