Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

Sterlite Technologies - Q1FY22 First Cut - ICICI Direct

Posted On: 2021-07-23 04:08:30 (Time Zone: UTC)


(CMP - Rs. 311, Market Cap - Rs. 12345 crore)

Sterlite Tech's performance for Q1FY22 was a mixed bag with a slight topline miss but better than expected margins. The bottomline beat was also aided by net exceptional gain of Rs. 16.2 crore.

Q1FY22 Earnings Summary

- Revenue came in at Rs. 1309 crore, up 49% YoY but down 11% QoQ, slightly lower expectations of Rs. 1348 crore (~53% YoY growth). We note that growth is on a benign base as Q1FY21 had ~39% YoY revenues decline. We await revenue breakup such as product/services. The order inflows traction, however, has been encouraging with key order wins in Q1 such as a) Multi-million dollar deal with a large European telco for the Opticonn solution, b) Incremental order for Lead360 from a large Indian Telco and c) Strategic Partnership with a leading Telecom solution provider in UK to connect homes to broadband by deploying FTTx Mantra

- EBITDA came in at Rs. 231.9 crore (I-direct estimate: Rs. 229.2 crore), up 90.6% YoY but down ~10% QoQ. Reported EBITDA margins came in higher at 17.7% (vs. our estimate of 17%), up 380 bps YoY, given the operating leverage

- PAT came at Rs. 115.8 crore, vs. Rs. 6 crore in base quarter but down 7% QoQ. The PAT was also aided by net exceptional gain of Rs. 16.2 crore

- The company also announced a small acquisition of Clearcomm Group Ltd, a UK based network integration company which has annual revenues of GBP 20 million. The transaction is structured to acquire 100% of the share capital in two tranches. Tranche 1 entails acquisition of 80% of the share capital which will happen immediately, and is based on an Enterprise Value of GBP 15.5 million. The balance 20% shareholding will be acquired in 2023

- The company is also looking to raise funds through equity, convertibles or combination thereof, of ~Rs. 1000 crore, which we believe is to fund the acquisition and capex plans ahead

The company has also maintained that going ahead growth should be driven by growing OFC volumes, optical interconnect business, scaling up SI business and building access solution business. Therefore, traction, going ahead will be a key monitorable. We remain cautious on leverage (net debt/equity at 1.2x and net debt/EBITDA at 3x as on FY21) and believe cash generation will also be key to re-rating. We will come out with an update soon post the conference call.

Shares of STERLITE TECHNOLOGIES LTD. was last trading in BSE at Rs. 303.05 as compared to the previous close of Rs. 295.9. The total number of shares traded during the day was 386447 in over 9576 trades.

The stock hit an intraday high of Rs. 318 and intraday low of 298. The net turnover during the day was Rs. 119923577.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.


Other Headlines:

Automobile Sector - Monthly Quick View - Aug'21 - Mixed Performance across Segments - Reliance Securities

Axis Securities initiating coverage on ICICI Securities

Company Update - Minda Corporation - Q1FY22 - ICICI Direct

Quant Pick - PVR Ltd - ICICI Direct

Quant Pick - ONGC - ICICI Direct

Peak in the headline wholesale inflation is behind us - WPI August 2021 - Acuité Ratings

Sansera Engineering - IPO - Strong Outlook with Steady Cash Flow - Reliance Securities

APL Apollo Tubes - Journey from a semi-commodity player to a branded one - HDFC Securities

Nazara Technologies Ltd - Upbeat in medium-term, Uncertain over Long-term - YES Securities

IPO Review - Sansera Engineering Ltd - ICICI Direct

Overall index is still 0.3% lower than the pre-pandemic levels - IIP July 2021

YES SECURITIES on Monthly General Insurance & Mutual Funds Data

India urban logistics spaces expected to cross 7 million sq. ft by 2022: JLL

Neogen Chemicals - Breaking into the next orbit with a bang - HDFC Securities

Gladiator Stocks - Bharti Airtel Ltd - ICICI Direct

Gladiator Stocks - V-Guard - ICICI Direct

Balkrishna Industries - Industry export growth accelerates - ICICI Securities

HDFC Life Insurance - Exide Life Acquisition - Maintain ADD - YES Securities

Gladiator Stocks - Grindwell Norton - ICICI Direct

Gladiator Stocks - Godrej Properties - ICICI Direct

Monthly Auto Volumes - August 2021 - ICICI Direct

Stock Tales - Easy Trip Planners - ICICI Direct

IPO Review - Vijaya Diagnostic Centre Ltd - ICICI Direct

AU Small Finance Bank - Attrition at top level remains key challenge; business momentum sustained in Jul/Aug'21 - ICICI Securities

Gladiator Stocks - State Bank of India - ICICI Direct

Gladiator Stocks - PNC Infratech - ICICI Direct

Vijaya Diagnostic Centre Ltd - IPO Note - YES Securities

Consumer Durables Sector - Lockdown mars performance yet again - Institutional Research Desk at HDFC Securities

75% of the employees today want to be in office at least once a week as compared to 52% in October 2020: JLL

Gladiator Stocks - Safari Industries - ICICI Direct

Gladiator Stocks - Interglobe Aviation - ICICI Direct

IPO Review - Ami Organics Ltd - ICICI Direct

Q1FY22 GDP - 31st Aug 2021 - Acuité Ratings & Research

Avanti Feeds - Higher input prices hurt margins - ICICI Securities

Company Update - Restructuring - Aarti Industries - ICICI Direct

Q1FY22 Company Update - MM Forgings - ICICI Direct

Company Update - Arvind Fashions - ICICI Direct

Zomato - Can margins and multiples surprise? - ICICI Securities

Ujjivan Small Finance Bank - Top management change and lumpy provisioning concern to weigh on valuation in near term - ICICI Securities

Bharat Dynamics - Guided missile systems to drive orderbook and profit growth - ICICI Securities

Economy - Continued accommodation necessary despite inflationary risks: MPC minutes - ICICI Securities

InterGlobe Aviation - Annual report analysis: Liquidity management remains the mainstay in anticipation of traffic recovery - ICICI Securities

General insurance - Health remains dominant growth driver; Strong all-round performance by Bajaj Allianz - ICICI Securities

Earnings Wrap Q1FY22: Resilient earnings, limited impact of second Covid wave - ICICI Direct

Fine Organic Industries Results Review - In-line performance - HDFC Securities

Power Plus Sector Update - July witnessed strong ~10% generation growth - HDFC Securities

Information Technology Sector Update - 'Hit Refresh' - HDFC Securities

Maintain ADD on JK Cement - Healthy performance - HDFC Securities

Maintain BUY on Star Cement - Margin recovers on pricing gain - HDFC Securities

Maintain BUY on Sadbhav Engineering - Long road to recovery - HDFC Securities


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020