Sterlite Technologies Ltd's Q3FY19 consolidated net profit rises 61.62% yoy to Rs145.60cr : Beats Estimates

The company’s consolidated revenue stood at Rs1,334.87cr, up 59.83% yoy and 23.1% qoq.

Jan 24, 2019 09:01 IST India Infoline Research Team

Sterlite Technologies Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 1,334.87 59.8
EBITDA 293.82 45.7
EBITDA Margin (%) 22 [214]
Net Profit (adjusted) 145.60 61.6
***EBITDA margin change is bps
Sterlite Technologies posted a strong set of numbers and beat the street estimates on key performance parameters. Consolidated revenues surged 60% yoy to Rs1,335cr in Q3FY19, beating the consensus estimates by 18%. EBITDA jumped 46% yoy to Rs294cr for the December quarter, beating the estimates by 3%. However, EBITDA margin for the Q3FY19 stood at 22% vs. 24% in Q3FY18, registering contraction of 214bps yoy. Net profit increased by 49% yoy to Rs148cr in Q3FY19 as compared to Rs99cr in Q3FY18, 6% above the consensus estimates.
  • Revenue growth was driven by sustained momentum of the execution of order book which is at all-time high of Rs10,231cr at the close of Q3FY19.
  • Surge in cost of material (up 89% yoy to Rs661cr) and higher employee benefit expenses (up 64% yoy to Rs149cr) led to 214bps contraction in EBITDA margins for the quarter.
  • Stellar performance at the bottom-line is primarily attributed to strong growth in the top-line.
  • The current order book provides visibility for next 2.5 years.
  • Sterlite continues to expedite strategic guidance of US$100mn PAT by FY20.
  • The company reported that its capacity expansion plan of optical fibre is on track and will achieve 50mn fkm capacity by mid CY19.

Technical View:

Sterlite Technologies Ltd is currently trading at Rs. 290.45, down by 2.95 points or 1.01% from its previous closing of Rs. 293.40 on the BSE.
The scrip opened at Rs. 294 and has touched a high and low of Rs. 299.10 and Rs. 288.80 respectively. So far 30,33,151 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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