Sterlite Technology - Result Update - Nirmal Bang

- Below expected performance of Sterlite Technology is dec quarter is on account of lower demand from China and USA of optical fibre and optical fiber cable.

- Revenue grew 24.9% yoy led by Power segment

- EBITDA grew 8.3% yoy at Rs 56.5 cr led by higher operating costs. EBITDA margins fell 105 bps to 6.8% impacted by lower volumes and hence lower margins in Telecom Product & Solutions segment

- PAT was higher by 6.3% yoy, aided by lower tax rate

- Management expect it to improve back to normal in next two quarters

- The stock is trading at TTM PE of 25.3x and 12.4 times FY13E EPS of Rs 2.5.

- Downside is limited in the stock and long term outlook continues to remain positive

Source : Equity Bulls

Keywords