Agarwal sees robust medium to long-term growth in Optical Fibre Cable market
STL (NSE: STLTECH) has announced two long-term engagements in the US with Windstream and TruVista, and signed a partnership for building and maintaining data centres for a leading public sector entity in India.
Further STL said on 26 Oct 2023 that it is strengthening its reputation as the leading fiberisation partner. The company has secured an order of Rs.370 crore with a leading Indian service provider.
Championing hi-tech R&D as an Indian company, STL has announced its participation in the Advanced Optical Communications (AOC) Test Bed for advancements in 5G, 6G and enterprise technologies.
STL has been rated as a top ESG performer with a rating upgrade to ‘A’ in the Morgan Stanley Capital International (MSCI) index along with an overall score of 92 percentile in the EcoVadis Sustainability Assessment score.
Sharing insights on the market outlook and STL’s growth prospects, STL Managing Director Ankit Agarwal said, “We are confident and excited about the robust medium to long-term growth in the Optical Fibre Cable market.
“With our strategic focus on deep customer engagement, product innovation and sustainability we are well poised to capture long-term growth and drive towards our ambition of becoming one of the top three optical companies in the world.”
STL gained momentum in India and EMEA with its Optical Fibre Cable, Optical Connectivity, and Enterprise offerings, with nearly 72% of its revenue coming from these markets.
The company displayed resilient performance in the US amidst short-term demand softening.
The launch of STL’s South Carolina Plant in the US and its strategic and timely BEAD qualification have put the company in the driving seat for the upcoming network rollouts for federal and private projects in the US, starting calendar year 2024.
In this crucial quarter, the company said it has accelerated its focus on long-term success drivers of deep customer partnerships, sustainability and product innovation.
STL has also become the ‘first in the world’ to launch a range of Eco-labelled Certified Optical Products. This range of optical products is recognised by US-based Sphera, an ESG performance consulting services company, and verified by Metsims Sustainability Consulting, a global sustainability consulting firm, said STL at the India Mobile Congress 2023 on 27 Oct.
Agarwal also updated on STL performance in the quarter ended 30 Sept 2023. STL reported 2% to Rs.1,494 crore in revenues which for the first half of FY24 was also down 5% to Rs.3,016 crore.
Focusing on operational efficiencies and improved realisation, the company recorded a 13% YoY growth in EBITDA to Rs.451 crore for the first half but it was down 8% to Rs.216 crore for 2Q.
Overall, it reported a robust open order book of Rs.10,516 crore across its three business units – Optical Networking, Global Services, and Digital. Fiinews.com
