Sterlite Technologies - Q4FY18E Result Expectation

Consensus expectations for Q4FY18E:

• Consolidated Revenue – Rs876cr, up by 25%yoy, led by increase in volume and realization due to increasing contribution of value added fiber       
• EBITDA – Rs204cr, up by 26% yoy led by higher sales and operating leverage
• EBITDA Margin – 23.3%, flat on yoy basis
• Net Profit – Rs90cr, up by 42% yoy

   Q3FY18 performance highlights:

• Revenue – Rs835cr, up by 14%yoy, due to pick-up in optic fibre business
• EBITDA – Rs202cr
• EBITDA Margin – 24.2%
• Net Profit (adjusted) – Rs99cr
• Order book at quarter end stood at Rs4,573cr (up 71%yoy)

Remarks:

• On meeting the expectations, the stock would react positively, as the company has bright prospects backed by strong order book and margin expansion.
• The company may throw some light on status of smart cities bids. Commentary on order book particularly 5G orders is a key thing to watch out for.

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