Sterlite Technologies standalone net profit rises 33% yoy to Rs.51.90 crore in Q4FY16

The company’s consolidated revenue stood at Rs. 1 crore, down 99.83% yoy and 99.9% qoq.

May 26, 2016 2:48 IST | India Infoline News Service
Sterlite Technologies , leading power & telecom products manufacturer,  standalone net profit of Rs. 51.90 crore for the quarter ended March 31, 2016, registering growth of 32.63% yoy and 25.7% qoq. The company’s standalone revenue stood at Rs. 575.59 crore, down 41.21% yoy but up 6.56% qoq.

Its standalone core operating profit of Rs. 115.71 crore for the quarter, clocked growth of 1.47% yoy and 9.46% qoq. Operating profit margin for the current quarter at 20.1% expanded by 845 bps yoy and 53 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 181.05 crore, growing by 114.92% yoy. Its standalone revenue for the period stood at Rs. 2,035.66 crore, registering decline of 5.35% yoy.

Sterlite Technologies  core operating profit stood at Rs. 545.30 crore, recording growth of 59.8% yoy. Operating margin for the current period at 25.31% expanded by 944 bps yoy.

On consolidated basis, For the year ended March 31, 2016, the company reported consolidated net profit of Rs. 151.06 crore as compared to net loss of Rs. 2.64 crore in the corresponding period of the previous year. Its consolidated revenue for the period stood at Rs. 2 crore, registering decline of 33.33% yoy.

Sterlite Technologies Ltd's core operating profit stood at Rs. 452.11 crore, recording decline of 1.85% yoy. Operating margin for the current period at 20.92% expanded by 605 bps yoy.

Sterlite Technologies Q4 FY16 –Decent performance:

Sterlite Technologies delivered topline growth of 19% yoy (for demerged telecom business) during Q4 FY16, marginally higher than IIFL estimate owing to higher than expected sales of Optic Fibre (OF). EBITDA Margins stood at 22% (decline by 90 bps yoy) in Q4 FY16 owing to increase in contribution of low margin OF segment in the overall revenues. EBITDA margins were largely in-line with IIFL estimates. During the quarter the company has achieved an annual run-rate of 22 mn fkm production of OF and is operating at full capacity.

The Company has completed the demerger process of power business which would be effective from mid June 2016 subject to certain pending approvals. Post demerger, the current stock price and target price would reduce by Rs.22.5 per share. The shareholders would be paid Rs.22.5 for each share held as on the record date or they can choose other available options like redeemable preference shares for the power business.

Stock Commentary:

Sterlite Technologies Ltd is currently trading at Rs. 88.8, up by 2.55 points or 2.96% from its previous closing of Rs. 86.25 on the BSE.

The scrip opened at Rs. 86.6 and has touched a high and low of Rs. 90.15 and Rs. 85.7 respectively. So far 1573495(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3408.5 crore.

The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 109.9 on 04-Aug-2015 and a 52 week low of Rs. 63.5 on 15-Jun-2015. Last one week high and low of the scrip stood at Rs. 91.45 and Rs. 84.5 respectively.

The promoters holding in the company stood at 54.71 % while Institutions and Non-Institutions held 16.03 % and 29.24 % respectively.

The stock is currently trading below its 50 DMA.

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