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Aug 02, 2012, 04.39 PM IST
CRISIL Research has come out with its report on Sterlite Technologies. The research firm has maintained the fundamental grade of 3/5 to the company in its July 30, 2012 report.
Sterlite Technologies Ltd’s (Sterlite Tech’s) Q1FY13 revenues were higher while PAT was slightly below CRISIL Research’s expectations. Higher-than-expected sale of fibre cables (better realisation though it is a low-margin product) resulted in higher revenues but lower margins. Revenues grew 58% y-o-y and 7% q-o-q to Rs 8,661 mn, primarily driven by high sales volume of all the products. EBITDA margin expanded by 252 bps y-o-y to 8% as the company, like in Q4FY12, reported improved profitability in both its segments. However, contrary to our expectations, profitability hardly increased sequentially. Adjusted PAT grew 250% y-o-y (11% q-o-q) to Rs 183 mn following revenue growth and improvement in profitability. We maintain our fundamental grade of 3/5.
Telecom segment: capacity expansion and favourable product mix; good prospects
Conductor business: low profitability; increasing competition
Fair value estimate lowered to Rs 37; CMP has upside
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
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