Optical networking solutions provider Sterlite Tech has posted a very good set of financials for the first quarter ended 30 June, with net profits almost doubling when compared to the same quarter a year ago.
The India-headquartered firm recently acquired Metallurgica Bresciana, the Italian optical fibre cable manufacturer. With this deal, Sterlite augmented its access to European Tier-1 customers and enhanced its supply chain flexibility to better serve the European market.
For the first quarter, revenues were up 18% to €110m, and EBITDA rose 54% to €32m. Profits after tax almost doubled to €15m (up 99% year-over-year).
Sterlite has given strategic guidance for net income growth of €85m for the full year, which is expected to be achieved with the help of the Italian acquisition. Metallurgica reported revenues of €48.7m and net income of €4.2m in 2017.
“I am confident that our strategy of building next-generation smarter networks that are fibre-led will create a differentiating impact on customers. Our solutions are enabling data security for defence establishments and hyper-connectivity for telcos, global internet companies and enterprises,” said Anand Agarwal (pictured), CEO at Sterlite Tech.
Going forward, the company says it is focusing on building infrastructure for 5G backhaul, fibre-to-the-home, data centres and Internet of Things applications.
The company has a customer presence across products, services and software in more than 100 countries and manufacturing, R&D and software development facilities in India, China, Italy and Brazil.
Earlier this year, Sterlite was awarded a major contract to design, build and manage the Indian Navy’s communications network. This is the first time that an integrated naval communications network at such a scale is being built in India. The scope of the deal requires Sterlite to design, build and manage the communications network over a decade through its system integration capabilities.