Sterlite Technologies - Recovery Begins: ICICI Direct

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Direct Report.Sterlite Technologies Ltd. has stated that optical fibre cable capacity utilisations are at 88% (based on capacity of ~37 million square metres). The company market share (excluding China) grew to ~11% in H1 FY23 versus ~9% in FY22, led by sharp increase in OFC market share in Americas, where it enjoyed ~14% market share in H1 FY23 versus ~7% in FY22. Sterlite Tech has also maintained that, going ahead, growth should be driven by growing OFC volumes (increasing market share, increasing optical interconnect attach rate and developing new products) and consolidate the services business (focus on profitable growth and reduce working capital). We highlight that this is a complete shift from earlier stance of expanding services business, which has had stretched working capital cycle history. We bake in revenues compound annual growth rate of ~21.4% in FY22-24E. We expect H2 FY22 revenues to remain healthy driven by continued robust capacity utilisation in the product segment as well as improved traction in services business. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Sterlite Technologies - Recovery Begins: ICICI Direct

The company market share (ex China) grew to ~11% in H1 FY23 vs ~9% in FY22, led by sharp increase in OFC market share in Americas.

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