ICICI Direct's research report on Sterlite Technologies
Sterlite Tech’s (STL) performance in Q3FY21 was a mixed bag as topline beat (with growth returning after 4 quarters of decline) was offset by lower than expected margins. Revenues came in at Rs 1314 crore, up 9.3% YoY. Product and services were in the ratio of 55:45. EBITDA came in at Rs 230 crore, down 4.7% YoY, owing to revenue mix. Reported EBITDA margins came in at 17.5%, down 257 bps YoY. PAT came in line at Rs 86.6, up 64.6% YoY, as Q3FY20 had one-off tax settlement. On adjusted basis, PAT was down 4% YoY.
We upgrade to HOLD (vs. REDUCE earlier), valuing it at revised target price of Rs 200/share, largely on the back of reversal of revenue decline cycle.
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