Optical and Digital solutions company STL has announced its financial results for the quarter ended June 30, 2023. The company reported Rs 1,522 Crores in revenues, along with an open order book of Rs 10,938 Crores across its three business units - Optical Networking, Global Services, and Digital, according to the announcement.
Strong EBITDA Growth
Despite facing global headwinds, STL showcased a remarkable 42 percent Year-on-Year (YoY) growth in EBITDA, attributing it to its relentless focus on operational efficiencies. Additionally, the Profit After Tax (PAT) witnessed a staggering surge of 156 percent. The company achieved operational profitability, maintaining a steady EBITDA percentage of 15.4 percent during the current quarter.
Amidst a 3.4 percent decline in the Global Optical Fiber Cable (OFC) demand in the first half of CY2023, STL managed to retain its 11 percent global (excluding China) OFC market share, reinforcing its position as a preferred partner for customers. According to the statement, the company continued to exhibit momentum in key markets and businesses, keeping customer-centricity and profitability at the core of its operations.
By prioritizing customer-centricity, product innovation, and operational efficiencies, the business delivered an EBITDA of Rs 246 Crores (around 22 percent) in the current quarter, marking a substantial 53 percent YoY growth. STL stated that it intensified its focus on the EMEA, APAC, and Indian regions to maximize growth potential across global markets.
Global Services Business
The Global Services Business gained momentum, achieving 82 percent Quarter-on-Quarter (QoQ) growth in orders during Q1 FY24. The business secured key projects, such as partnering with a telecom company in India for fibre rollouts and managing a data centre for a public sector enterprise.
STL announced that its Digital division had gained 20+ clients, resulting in orders worth around Rs 350 Crores and an open order book of over Rs 900 Crores. The division has a team of 50+ leaders and 950+ consultants providing top-notch solutions.
STL reported notable on-ground efforts, including diverting over 225,000 metric tonnes of waste, reducing 23,000+ metric tonnes of tCO2e, and conserving 675,000+ cubic meters of water over the past five years.