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STL delivers a strong third quarter with continued Q-o-Q growth

  • Revenue at Rs. 1314 crores, with strong Q-o-Q and Y-o-Y growth
  • Maintains a healthy order book of Rs. 10,000+ crores backed by new customers and products
  • Continued investments in capabilities and capacities

Pune, India – 20 January 2021: STL [NSE: STLTECH]: an industry-leading integrator of digital networks, today announced the financial results for the third quarter ended December 31, 2020. STL recorded revenues of Rs 1314 crores, demonstrating growth compared to last year and the preceding quarter. The outlook for 2021 looks promising as STL maintained its order book above Rs. 10,000 crores, and commercially launched new products for optical and wireless networks, setting the stage for disruptive growth in the 5G era.

2020 was a landmark year for Digital Networks

As the pandemic brought normal life to a standstill, 2020 established the power of digital networks beyond any doubt. With digital becoming the primary mode of human interaction, user penetration accelerated and network builders committed disproportionate investments. This has triggered an unprecedented decade of network creation. As the new network drives connectivity to billions of unconnected users, 5G and FTTH became mainstream. A new architecture emerged, based on 4 key technology confluences of- i) wired and wireless, ii) hardware and software, iii) compute and connectivity, iv) at the edge. Recognizing these major shifts, STL focused on strengthening its core capabilities in optical solutions, network software, and system integration, while establishing new solutions in next-gen wireless access.

STL achieved strong results and established new solutions with marquee customers for future growth

In Q3, STL demonstrated continued growth and financial performance in its core business areas and invested in capability building, capacity enhancement, new product development, and the strengthening of its leadership team.

Some key highlights:

  • Continued profitable growth. STL recorded consistent revenue growth in comparison with both the past quarter and the same period last year. This revenue growth has been driven by All-time high volumes of optical fibre and cables through deep customer engagement and Improved pace of network deployment, through process automation and robotics
  • Investment in capabilities. After the successful investment in ASOCS to help drive virtual RAN solutions in early 2020, STL enhanced its Opticonn solutions with the acquisition of Optotec – a Europe based leader of Optical Interconnect Products. This strengthens STL’s end-to-end Optical Connectivity portfolio, and increased the STL’s addressable market by $8-10 Bn
  • Enhancement of capacity. As the upcoming decade of digital network creation will keep driving demand for optical fibre, STL has committed Rs. 300 crores to expand its Optical Fibre Cable capacity from 18 to 33 million fibre kilometers. This expansion is on track for completion by June 2021
  • Development of advanced technology products. STL’s R&D efforts have been pivotal in creating sustainable value for its customers. Telcos globally have entrusted their core network build outs to STL, given these advanced solutions. In this quarter, STL launched many disruptive products: 

o   Celesta – industry’s most advanced high fibre count ribbon cable with STL’s indigenously developed Stellar fibre, that is fast and easy to deploy. This slim cable that holds nearly 7,000 optical fibres has helped STL win large scale deals with two leading European telcos for nationwide deployment of optical networks

o   5G Portfolio – across Multi-Band New Radio, Wi-Fi-6, and Indoor Small Cell – STL has developed comprehensive hardware plus software solutions for unique use cases such as indoor Garuda 5G Small cells, Outdoor multi-band radio and Wi-Fi6 offerings. These have been developed in compliance with O-RAN standards, and with an ecosystem of radio, software, and virtual infrastructure technology companies

  • Strengthening of the core leadership team to drive growth – STL welcomed to its team, Sandeep Girotra as the Global Sales Head, and a range of leaders with deep expertise in the digital networks industry, core technologies, and key account management, across India, UK, and USA. STL also enhanced its Board of Directors with the appointment of industry leaders Mr BJ Arun, Mr S. Madhavan and Mr Ankit Agarwal
  • Recognized by BCG amongst top 100 Tech Challengers for the next generation of innovation in emerging countries, on the back of STL’s continued growth and new unparalleled technology innovations

Q3’ FY 21 Financial Highlights

Revenue:  Rs. 1,314 crores  up 13% Q-o-Q

EBITDA:  Rs. 238 crores  up 12% Q-o-Q

PAT:  Rs. 87 crores  up 48% Q-o-Q

Order Book:  Rs. 10,737 crores

Commenting on STL’s performance and outlook, Dr. Anand Agarwal, Group CEO, STL said “Our strong evolving suite of end-to-end converged network solutions is fundamental to our continued growth. Post 2020, we are looking at a decade of extensive network creation. Mindful of this, we have invested in strong global talent and built solutions that can deliver best-in-class digital networks across the globe. Our philosophy of deep customer engagement, coupled with sustained investments will help drive profitable growth for our key accounts, as they deliver the best digital experience to their customers.”

To know more about the company’s strategy and Q3’ FY 21 results, please log in to the Analyst Call today at 16.00 IST.

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