MIRA
INFORM REPORT
|
Report Date : |
25.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
STERLITE TECHNOLOGIES LIMITED (w.e.f. 1.12.2007) |
|
|
|
|
Formerly Known
As : |
STERLITE OPTICAL TECHNOLOGIES LIMITED |
|
|
|
|
Registered
Office : |
Survey No. 68/1, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation
: |
24.03.2000 |
|
|
|
|
Com. Reg. No.: |
000340 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.712.800 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300DN2000PLC000340 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
SRTS1199C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAECS8719B |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Providing Transmission Products and Solutions for Evolving Application
in the Global Telecom and Energy Industries. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 41436000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are strong
and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealing at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
|
|
|
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Survey No. 68/1, |
|
Tel. No.: |
91 – 240 - 2564599 |
|
Fax No.: |
91 – 240 - 2564598 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Optical Fiber E2, E3, MIDC, Waluj, |
|
Tel. No.: |
91 – 240 – 2564599 |
|
Fax No.: |
91 – 240 - 2564598 |
|
|
|
|
Factory 2 : |
Fiber Optical
Cables, Survey No. 68 / 1, Rakholi Village, Madhuban Dam Road, Silvassa –
396230, India. |
|
Tel. No.: |
91 – 260 – 6612000 |
|
Fax No.: |
91 – 260 - 6612013 |
|
|
|
|
Factory 3 : |
Copper Telecom
Cables Survey No. 209, Phase 2, Piparia Industrial Estate, Silvassa – 396240,
|
|
|
|
|
Factory 4 : |
Structured Data
Cables Survey No. 33 / 1 / 1, |
|
Tel. No.: |
91 – 260 – 6452959 |
|
Fax No.: |
91 – 260 - 6612122 |
|
|
|
|
Factory 5 : |
Power
Transmission Conductors Survey No. 99, |
|
Tel. No.: |
91 – 260 – 6612200 |
|
Fax No.: |
91 – 260 - 6612260 |
|
|
|
|
Factory 6: |
Plot 2D, Sector 10, IIE SIDCUL, Haridwar – 249403, |
|
Tel. No.: |
91 – 1334 – 239463 |
|
Fax No.: |
91 – 1334 - 239375 |
|
|
|
|
Sales, Marketing and Representative Offices: |
Located at: ·
·
·
·
·
Campobello ·
·
Haridwar ·
·
·
·
Mumbai ·
Noida ·
Pune ·
·
Silvassa |
|
|
|
|
Corporate Office : |
4th Floor Godrej Millenium 9, |
|
Tel. No.: |
91 – 20 - 30514000 |
|
Fax No.: |
91 – 20 - 26138083 |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Anil Agarwal |
|
Designation : |
Non – Executive Chairman |
|
|
|
|
Name : |
Mr. Pravin Agarwal |
|
Designation : |
Wholetime Director |
|
|
|
|
Name : |
Mr. Arun Todarwal |
|
Designation : |
Non – Executive and Independent Director |
|
|
|
|
Name : |
Mr. A. R. Narayanaswamy |
|
Designation : |
Non – Executive and Independent Director |
|
|
|
|
Name : |
Mr. Haigreve Khaitan |
|
Designation : |
Non – Executive and Independent Director |
|
|
|
|
Name : |
Mr .Anand Agarwal |
|
Designation : |
Chief Executive Officer and Wholetime Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajendra Mishra |
|
Designation : |
Chief Operating Officer (Power) |
|
|
|
|
Name : |
Mr. Anurag Rai |
|
Designation : |
Vice President (Human Resource) |
|
|
|
|
Name : |
Dr. Anand Agarwal |
|
Designation : |
Chief Executive officer and Wholetime Director |
|
|
|
|
Name : |
Mr. Dharmendra Jain |
|
Designation : |
General Manager (Finance) |
|
|
|
|
Name : |
Mr. Anupam Jindal |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. K. S. Rao |
|
Designation : |
Chief Operating Office (Telecom) |
|
|
|
|
Name : |
Mr. Sandeep Deshmukh |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2010)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
860,810 |
0.22 |
|
|
4,765,295 |
1.21 |
|
|
5,626,105 |
1.43 |
|
|
|
|
|
|
209,402,750 |
53.29 |
|
|
209,402,750 |
53.29 |
|
Total shareholding of Promoter and Promoter Group (A) |
215,028,855 |
54.72 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
23,029,875 |
5.86 |
|
|
21,625,594 |
5.50 |
|
|
850 |
- |
|
|
914,737 |
0.23 |
|
|
8,663,257 |
2.20 |
|
|
54,234,313 |
13.80 |
|
|
|
|
|
|
23,798,760 |
6.06 |
|
|
|
|
|
|
82,509,697 |
21.00 |
|
|
12,542,772 |
3.19 |
|
|
4,824,080 |
1.23 |
|
|
4,245,053 |
1.08 |
|
|
200 |
- |
|
|
11,705 |
- |
|
|
303,527 |
0.08 |
|
|
85,550 |
0.02 |
|
|
133,245 |
0.03 |
|
|
44,800 |
0.01 |
|
|
123,675,309 |
31.47 |
|
Total Public shareholding (B) |
177,909,622 |
45.28 |
|
Total (A)+(B) |
392,938,477 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
392,938,477 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionsBUSINESS DETAILS
|
Line of Business : |
Providing Transmission Products and Solutions for Evolving Application
in the Global Telecom and Energy Industries. |
||||||||||||
|
|
|
||||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
Power Transmission Line – Distribution Conductor ** |
MT |
NA |
160000 |
125530 |
|
Copper Telecom Cables |
CKM |
9500000 |
2828400 |
720524 |
|
Fiber Optic Cables* |
FKM |
5309059 |
4500000 |
3775878 |
|
Optical Fiber |
KM |
12000000 |
12000000 |
9130523 |
|
Broadband Access Networks |
NOS |
1500000 |
1000000 |
-- |
GENERAL INFORMATION
|
No. of Employees : |
Approximately 850 Employees |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Not Available |
|||||||||||||||||||||||||||||||||||||||
|
|
Rs
In Millions |
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
NOTES: Working capital loans and Other loans from Banks are secured by
hypothecation of Raw materials, Work-in-Progress, Finished Goods and Sundry
Debtors.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Batliboi and Company Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
|
|
|
|
|
Subsidiary Company: |
|
|
|
|
|
Group Companies: |
·
Voican Investments Limited, ·
Twin Star Overseas Limited, |
CAPITAL STRUCTURE
(As on 31.03.2009)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
750000000 |
Equity shares |
Rs.2/- each |
Rs.1500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
356382129 |
Equity Shares |
Rs.2/- each |
Rs.712.800 Millions |
Of the above:
1) 139,781,397 (139,781,397 of Rs2 each fully paid-up) Equity Shares of
Rs2 each were allotted to the shareholders of Sterlite Industries (I) Ltd. upon
demerger pursuant to the scheme of arrangement sanctioned by the Honorable High
Court of Judicature at Bombay, being shares issued for consideration other than
cash.
2) During the financial year 2009-10, 16,125,000 Share Warrants were
converted into 32,250,000 fully paid-up Equity Shares of Rs2 each, which
includes 16,125,000 Equity Shares issued as bonus shares.
3) During the year 863,619 of Rs2 each (2,159,294 Equity shares of Rs2
each) shares were issued to employees of the company under ESOP Scheme. For
Stock Options outstanding details Refer Note 9, Schedule 21.
4) Of the above Equity Shares 178,191,065 shares of Rs2 each were
allotted as fully paid-up bonus shares by utilization of Rs356.400
Millions from Securities Premium
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
712.800 |
711.000 |
322.700 |
|
|
2] Share Application Money |
271.200 |
271.100 |
0.000 |
|
|
3] Reserves & Surplus |
9375.000 |
8178.200 |
5886.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10359.000 |
9160.300 |
6209.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1749.800 |
2323.000 |
4678.900 |
|
|
2] Unsecured Loans |
4447.900 |
1258.600 |
287.000 |
|
|
TOTAL BORROWING |
6197.700 |
3581.600 |
4965.900 |
|
|
DEFERRED TAX LIABILITIES |
660.100 |
601.600 |
559.500 |
|
|
|
|
|
|
|
|
TOTAL |
17216.800 |
13343.500 |
11734.800 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7061.700 |
6264.300 |
5453.200 |
|
|
Capital work-in-progress |
1607.600 |
569.700 |
1113.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
1088.400 |
1061.100 |
920.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1913.800
|
1709.100
|
1003.700 |
|
|
Sundry Debtors |
8665.000
|
6289.700
|
5458.900 |
|
|
Cash & Bank Balances |
1300.600
|
2097.100
|
778.900 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
3503.400
|
1566.600
|
2011.500 |
|
Total
Current Assets |
15382.800
|
11662.500
|
9253.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
4872.200
|
4422.200
|
2976.600 |
|
|
Other Current Liabilities |
2685.700
|
1281.300
|
1811.000 |
|
|
Provisions |
365.800
|
510.600
|
214.400 |
|
Total
Current Liabilities |
7923.700
|
6214.100
|
5005.000 |
|
|
Net Current Assets |
7459.100
|
5448.400
|
4248.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
17216.800 |
13343.500 |
11734.800 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
22625.500 |
24316.300 |
22892.300 |
|
|
|
Other Income |
159.700 |
228.800 |
61.600 |
|
|
|
TOTAL (A) |
22785.200 |
24545.100 |
22953.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other Expenses |
17855.900 |
18130.500 |
18687.200 |
|
|
|
Personnel Expenses |
825.600 |
580.100 |
512.400 |
|
|
|
Selling and Administrative Expenses |
930.000 |
783.600 |
756.300 |
|
|
|
Administration and General Expenses |
311.900 |
952.800 |
535.300 |
|
|
|
Research and Development Expenses |
45.700 |
59.800 |
59.600 |
|
|
|
TOTAL (B) |
19969.100 |
20506.800 |
20550.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2816.100 |
4038.300 |
2403.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
474.100 |
381.200 |
904.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2342.000 |
3657.100 |
1498.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
560.100 |
482.600 |
425.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1781.900 |
3174.500 |
1073.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
376.600 |
713.800 |
171.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1405.300 |
2460.700 |
901.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6080.500 |
4073.900 |
3357.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
140.600 |
246.100 |
90.200 |
|
|
|
Dividend |
196.500 |
177.800 |
80.700 |
|
|
|
Tax on Dividend |
31.300 |
30.200 |
13.700 |
|
|
BALANCE CARRIED
TO THE B/S |
7117.400 |
6080.500 |
4073.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
6998.500 |
5542.200 |
5925.800 |
|
|
|
Deemed Export |
928.500 |
2648.600 |
3456.400 |
|
|
TOTAL EARNINGS |
7927.000 |
8190.800 |
9382.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3728.500 |
5936.800 |
5521.100 |
|
|
|
Stores & Spares |
122.900 |
104.000 |
74.400 |
|
|
|
Capital Goods |
785.000 |
268.400 |
781.100 |
|
|
TOTAL IMPORTS |
4636.400 |
6309.200 |
6376.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
3.95 |
7.61 |
2.80 |
|
|
|
Diluted |
3.72 |
7.34 |
2.78 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
|
30.06.2011 1st Quarter |
|
Net Sales |
|
|
|
|
5473.300 |
|
Total Expenditure |
|
|
|
|
5171.400 |
|
PBIDT (Excl OI) |
|
|
|
|
301.900 |
|
Other Income |
|
|
|
|
138.000 |
|
Operating Profit |
|
|
|
|
439.900 |
|
Interest |
|
|
|
|
218.500 |
|
Exceptional Items |
|
|
|
|
0.000 |
|
PBDT |
|
|
|
|
221.400 |
|
Depreciation |
|
|
|
|
146.300 |
|
Profit Before Tax |
|
|
|
|
75.100 |
|
Tax |
|
|
|
|
22.800 |
|
Provisions and contingencies |
|
|
|
|
0.000 |
|
Profit After Tax |
|
|
|
|
52.300 |
|
Extraordinary Items |
|
|
|
|
0.000 |
|
Prior Period Expenses |
|
|
|
|
0.000 |
|
Other Adjustments |
|
|
|
|
0.000 |
|
Net Profit |
|
|
|
|
52.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.17
|
10.03
|
3.93 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.88
|
13.06
|
4.69 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.94
|
17.71
|
7.30 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.35
|
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.36
|
1.07
|
1.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.94
|
1.88
|
1.85 |
LOCAL AGENCY FURTHER INFORMATION
NATURE OF
OPERATIONS:
The Company is primarily engaged in the manufacture of Power
Transmission and Telecom products in
PERFORMANCE:
Fiscal year 2010-11 closed with revenues of Rs 22630.000 Millions, EBITDA
of Rs 2820.000 Millions, PAT of Rs 1410.000 Millions and EBITDA margins of 12%.
The telecom business revenues of Rs 6570.00 Millions at an EBITDA margin of 26%
and the power business revenues of Rs 16060.000 Millions at an EBITDA margin of
7%.
The Company achieved the highest sales volumes historically for all its
core businesses – power conductors, optical fibers and telecommunication cables
.
During the year, good Tier-1 clients were added for all businesses,
across geographies. Revenue
from international sales in FY11 accounted for Rs 7000.000 Millions,
which is 31% of net revenues in FY10 and this has been achieved with a right
mix of repeat orders from current clients and
addition of new eminent global clients.
Sterlite has achieved its target capacity expansion of 160,000 MT for
power conductors, through productivity enhancements at its facilities at
Rakholi and Haridwar and with the setup of a green-field facility at
Jharsuguda, Orissa.
The Company’s ongoing capital project for capacity enhancement of
optical fiber to 20 million-km is well on track for completion and is expected
to be fully operational during FY12.
As part of its efforts to enhance its global footprint, Sterlite formed
a joint venture company Jiangsu
Sterlite Tongguang Fiber Company Limited in
During the year, Sterlite increased the breadth of its portfolio by
introducing new products and solutions like bend-free fiber, OPGW cables and
FTTx solutions. The Company has enhanced its intellectual property portfolio
with the grant of 7 more patents, taking the total up to 30.
A detailed analysis of the Company’s operations and segment-wise
performance is covered under ‘Management Discussion and Analysis Report’.
SHIFTING OF
REGISTERED OFFICE FROM STATE OF
UNION
The shareholders of the Company had approved by postal ballot, shifting
of the registered office of the Company from the State of
Management
Discussion:
Social networking is now a new age phenomenon that is driving Internet usage
like never before. Websites like Facebook, Twitter and Orkut have now turned
into an online platform for sharing the everyday lives with the chosen
contacts. It has also led to a surge of online social communities catering to
basic entertainment to providing an outlet to share views and opinions on a
mass scale on social and political issues. Mobile social networking is entering
a golden era. In the next 2-3 years, the lines between social mobile and social
web will blur.
Internet Video is evolving from a niche service to a mainstream
high-quality commercial offering and expanding the overall communications
market in the process. Video over broadband is a new medium, and historically
new media almost always generate new forms of content (it just takes some
time). In the next 3-5 years, the growth of Internet Video will continue to
accelerate, hitting the sweet spot in the s-curve of adoption. Hence, video
traffic will drive the overall volume of Internet usage.
The Internet today is also the prerequisite to serve the needs of
business. Business competitiveness in today’s environment banks heavily on
access of timely and accurate information. The Internet has played a crucial
role is breaking the physical barriers and allowing fast access to information
and data thereby improving the overall efficiency and productivity levels. As
the requirements of business will grow, the growth in Internet consumption is
inevitable.
The role of the Internet in
disaster management is also becoming very crucial. Like
Increasing broadband speed: the average global residential Internet
connection download speed is 35 times faster in 2010 (4.4 megabits per second)
than in the year 2000 (127 kilobits per second). Broadband speed improvement
results in increased consumption and usage of high bandwidth content and
applications. Cisco forecasts that the global average broadband speed will
continue to grow and will quadruple from 2009 to 2014, leading to exponentially
faster download time.
Increasing computing power: A multi-core system with a 64-bit operating
system can make use of 4 billion times the RAM, compared to a 32-bit system.
Once software is developed to take full advantage of the new processing
capabilities, each core has the potential to generate as much traffic as a
single PC. Smart phones available in the market have a lot of computing power.
Mobile data traffic – It’s not just about SMS anymore
Mobile users expect to be able to stay connected with family, friends
and work in real time anywhere and anytime. As smart-phones have become a
mainstream product, mobile communication has evolved into much more than just
voice and text messages.
Users now demand multi-dimensional services – e-mail, instant messaging,
photograph and video sharing, social networking, blogging and a host of other
applications. the smart phone of today is an ‘Information Swiss knife’.
Conventionally, a mobile user starts using Entertainment VAS first. As they
evolve and become more mature, comes the usage of information VAS while
mCommerce tops the hierarchy among conventional VAS categories. Mobile Apps,
the most recent category tops the complexity of service as well as need evolved
and involved mobile user. The chart depicts relation between maturity of mobile
user and complexity of VAS they use.
As the developing economies across the globe gear up with new generation
capacities to meet the energy requirements, there will be incremental
investments in the T&D infrastructure. They are also seeing a renewed
momentum in T&D infrastructure build up in some of the developed parts of
the world. The usual life of a transmission line is around 30-35 years. Many of
these developed nations are now nearing the end of T&D infrastructure and
many state and national transmission utilities in these countries are now
planning investments to upgrade or set up new grids. The renewable energy
installations are also demanding new T&D infrastructures to evacuate power
from the new generating stations.
Some key developments in the global transmission & distribution
space
The
Russia’s Ministry of Energy has
estimated that the Russian power grids may need RUB 20 Trillion (US$ 700
billion) investments by 2030, of which RUB 11 Trillion (US$ 385 billion) would
be needed in the next ten years.
In
As per
PGCIL, the nodal transmission
utility in the country continues with its mega plan of building a pan-India,
high capacity transmission network in the country. !ough historically, the
Company has underachieved from its planned targets, however we are seeing
improvement in % achievement year on year.
In the 12th plan PGCIL plans to spend Rs 1,200 billion for:
- Enhancing the
capacity of the interregional transmission grid from 37,000 MVA to 75,000
MVA.
- Building a
High Capacity Transmission Corridor (HCTC) Which will help transport
electricity to the main load centres from 48 new IPPs located in coal belt
coastal areas and hydroelectric-rich areas. PGCIL plans to spend ` 496.3
billion, on HCTC of which ` 300.7 billion, 60% of the total, is expected
to be spent on transmission lines.
After the State Electricity Board (SEB) unbundling process, state
utilities are also investing in transmission infrastructure. The state grids
are being upgraded or revamped after years of neglect and lack of investment.
Rising power requirements have forced many State Transmission Utilities (STUs)
to set up high capacity intra-state power transmission systems. Based on the
mid-term appraisal of the 11th plan, SEBs are expected to spend ` 1,835.7
billion on the power sector. As per preliminary estimates, SEBs will have to
spend ` 1,000 billion on transmission and distribution infrastructure during
the 12th plan.
The opening up of power sector with the enactment of Electricity Act,
2003 was one of important steps towards bridging the gap between demand-supply
of power in the country. The Private sector in the country responded with keen
interest and has been very active in investing and setting up new generation
facilities
On similar lines, the government decided to open up the transmission
space for private players by introducing Independent Private Transmission
Company (IPTC) projects. The state transmission utilities (STUs, SEBs or their
successor entities) and the central transmission utility (Power Grid) identify
transmission projects for the intrastate and the inter-state/interregional
transmission of power respectively.
The STUs and the Central Transmission Utility (CTU) could invite private
companies to implement these projects through an IPTC or on a joint venture
basis. The role of the IPTC would be to the construct, own and maintain
transmission systems. Operations of the grid, including load despatch,
scheduling and monitoring will be undertaken by the STUs and the CTU at the
intrastate and inter-state/inter-regional levels, respectively. The CTU and
STUs would be involved in the development phase for obtaining project approvals
and various regulatory and statutory clearances.
Opening up of this space has invited interest of many private players in
the country and they are actively participating in the competitive bidding
process to become a part of T&D
infrastructure build up in the country.
In the 11th Plan, investment of
Rs 200000.000 Millions has been envisioned from the private sector directed
towards expanding interstate transmission network. Several PPP projects have
been awarded by state utilities including Haryana, Rajasthan,
Sterlite has been playing a
pivotal role over the last few years in building the Transmission
infrastructure in the country and today is the largest manufacturer globally
for overhead transmission conductors. The Company has also taken the lead to
participate as infrastructure owners by taking a portfolio of 3 Ultra mega
transmission projects (with combined investments of about US$ 1 billion) and is
poised to play a leading role in growing transmission space in the country and
globally.
Capitalizing on opportunities
In the dynamic global marketplaces, recognizing and capitalizing on
market transitions before they occur provides a vital direction to an
organization’s future growth strategy. To remain successful, organizations need
to develop and implement a multi-pronged strategy that encompasses a spectrum
of aspects such as product development, research, people development, risk
management, good governance standards and a responsibility to the community in
which they operate.
CONTINGENT LIABILITIES:
|
Sr. No. |
Particulars |
31.03.2011 |
31.03.2010 |
|
1. |
Disputed Liabilities in Appeal |
|
|
|
|
a) Sales Tax |
5.900 |
5.900 |
|
|
b) Excise Duty (Including Excise duty case in Supreme Court, Refer
Note 8, Schedule 21) |
2470.700 |
2666.900 |
|
|
c) Customs Duty |
743.100 |
743.100 |
|
|
d) Service Tax |
24.800 |
24.500 |
|
|
e) Claims lodged by a Bank Against the company (*) |
188.700 |
188.700 |
|
|
f) Claims against the company not acknowledged as Debt |
-- |
20.700 |
|
2. |
Outstanding amount of Export obligation against Advance License |
871.900 |
589.900 |
|
3. |
The company has given Corporate Guarantee to the Income Tax Department
on behalf of group companies. The outstanding amount is Rs1140.000 Millions
(Rs1140.000 Millions) on this account as at the year-end. The company has given Corporate Guarantee to Long Term Transmission
Customers on behalf of its subsidiary company. The outstanding amount is
Rs300.000 Millions (Rs Nil) on this account as at the year-end. |
|
|
The Company has not provided for disputed Sales Tax, Excise Duty, Customs
Duty and Service Tax arising from disallowances made in assessments which are
pending with Appellate Authorities for its decision.
It is not practicable to indicate the uncertainties which may affect the
future outcome and estimate the financial effect of the above liabilities.
(*) In an earlier year, one of the Bankers of the Company had wrongly
debited an amount of Rs 188.700 Millions towards import consignment under
Letter of Credit not accepted by the Company, owing to discrepancies in the documents.
The Company has filed the case against the bank in the High Court of Mumbai.
The bank has also filed a claim against the Company in the Debt Recovery
Tribunal. The Company does not believe that any liability will arise to the
Company.
YEARS OF ESTABLISHMENT:
Sterlite’s range
of telecom cables had been manufactured under Sterlite Industries (
Sterlite Optical Technologies Limited was formed by the demerger of the
erstwhile telecom
division of Sterlite Industries (
Sterlite Optical Technologies acquired Sterlite Industries Power Transmission
Line Business, with effect from July 1, 2006.
SCOPE OF BUSINESS
ACTIVITY:
·
Manufacturer and supply of Optical Fibers, Fiber
Optic Cables, Copper Telecom Cables, Structured Data Cables, ADSL2 + Modems.
·
Manufacturer and Supply of Power Transmission
Conductors, Aluminum and Alloy Rods
·
Telecom Integration and Managed Services.
STANDARD AND
CERTIFICATIONS:
· All Sterlite’s Telecom products comply with ITU-T recommendations and BS EN 188000, EIA/TIA and CEI-IEC 60793 Test Standard. All Sterlite’s power transmission products comply with IS, IEC, BS, ASTM, NFC, Din, AS, JIS and CSA International Specifications.
· ISO 9001:2000, ISO 14001:2004, OHSAS 18001:1999, British Safety Council (BSC) Five Star Rating, TL 9000, ISO 10002, UL.
RECENT AWARDS:
· Deloitte Technology Fast 500 Asia- Pacific Awards 2009
· Thomson Reuters Innovation Award 2009
·
· CIO 100 Award 2008 for innovative use of IT in Manufacturing.
·
IEEMA Award for Best New Product 2007 for
· Dun and Bradstreet Award for corporate Excellence 2007
· V and D 100 2009 Awards for Telecom Cables
· BSNL Preferred Suppliers Award 2009.
AS PER WEB DETAILS
MILESTONES
1988
Copper telecom cables facility started
1992
Fiber Optic cables facility started
1995
Optical fiber facility started
1997
Expansion of optical fiber capacity to 1 million-km
2000
Demerger of telecom business from Sterlite Industries Limited. Incorporation of
Sterlite Optical Technologies Limited
2002
Expansion of optical fiber capacity to 4 million-km. Offices opened in
2004
Structured data cables facility started
2006
Acquisition of power transmission business from Subject Commencement of telecom
integration and managed services business Offices started in
2007
Expansion of optical fiber capacity to 6 million-km Expansion of power
conductor capacity to 115,000 MT Change of company name to Subject Office
started in
2008
Office started in
2009
Expansion of optical fiber capacity to 12 million-km Expansion of fiber optic
cable capacity to 6 million-km Expansion of power conductor capacity to 160,000
MT
NEWS RELEASE
STERLITE TECHNOLOGIES QUARTERLY NET PROFIT UP 22%
Sterlite Technologies Limited ("Sterlite") [BSE: 532374, NSE:
STRTECH], a leading global provider of transmission solutions for the power and
telecom industries, announced its results for the quarter ended June 30, 2010.
|
Financial
Summary |
Quarter
ended June 30 |
Year
ended March 31 |
|
|
|
2010 |
2009 |
2010 |
|
|
|
|
|
|
Net Revenues |
Rs.4920.000 Millions US$ 109 Million |
Rs,4360.000 Millions US$ 97 Million |
Rs.24320.000 Millions US$ 540 Million |
|
Operating Profit (EBITDA) |
Rs.880.000 Millions US$ 20 Million |
Rs.800.000 Millions US$ 18 Million |
Rs.4040.000 Millions US$ 90 Million |
|
Net Profit (PAT) |
Rs.560.000 Millions US$ 12 Million |
Rs.450.000 Millions US$ 10 Million |
Rs.2460.000 Millions US$ 55 Million |
|
Diluted EPS |
Rs.1.46 per share |
Rs.1.40 per share |
Rs.7.34 per share |
Note: Currency
Conversion Considered US$ 1 = Rs.45
Financial highlights for the quarter ended June 30, 2010
- Sterlite closed Q1FY11 with revenues of Rs.4920.000 Millions, which is a growth of 13% over that in Q1FY10.
- EBITDA and net profit for the quarter were Rs.880.000 Millions and Rs.560.000 Millions respectively.
- The company maintained operating profitability at 18%.
- Net profit growth of 22% over Q1 of the last fiscal.
- The Company's optical fiber and fiber optic cables business segments have shown good volume growth as a result of expanded capacities coming online during the quarter.
- Revenue from international sales during the quarter accounts for Rs.1110.000 Millions, which is 22% of net revenues. Good Tier-1 clients added for all businesses, across geographies.
- The power business earned revenues of Rs.3400.000 Millions in Q1FY11; a growth of 15% year-on-year.
-
The telecom business earned revenues of
Rs.1520.000 Millions in Q1FY11; a growth of 9% year-on-year.
At the start of Q2FY11, the Company has a strong order book of over
Rs.26000.000 Millions (~US$ 580 Million) as compared to order book of
Rs.16000.000 Millions (~ US$ 356 Million) at the end of Q1 FY10.
Industry Updates
Telecom
-
Bandwidth usage is now doubling every 16 months, as
compared to more than 24 months a few years ago.
-
The global demand for fiber in the first half of
2010 was 91.9 million-km. Notable factors being:
·
Non-China demand back at healthy levels witnessed
in early 2008 driven mainly by FTTx projects in
·
-
National broadband policies being laid out by many
countries, focused towards enabling their economies by offering the citizens
high-speed broadband at their doorsteps, with speeds ranging between 10 Mb/s to
100 Mb/s per person on a fiber based infrastructure.
Power
-
Globally massive investments being planned to
strengthen, upgrade, overhaul and smarten the national grids.
-
In India, the power conductors business is seeing
significant volume visibility in the coming months as recently Power Grid
Corporation expressed its mega plan to invest Rs.640000.000 Millions over next
5-6 years into building nine high-capacity transmission super highways across
the country (over and above XIth investment plan).
Business highlights in Q1FY11
-
Completion of the acquisition of East-North
Interconnection Company Limited (ENICL), which was the SPV (Special Purpose
Vehicle) created by Power Finance Corporation Limited (PFC) to establish two
400KV Double Circuit Quad Transmission lines on 'Build, Own, Operate and
Maintain' basis. ENCIL is a wholly owned subsidiary of Sterlite Technologies
Limited.
-
Launch of 'Sterlite ECO.101 Data Cables' that are a
revolutionary concept in structured cabling. As the cables are devoid of
halogen elements, they pose no health hazard, are eco-friendly and use minimal,
fully recyclable packaging.
-
Grant of 3 more patents in
-
Award: CMAI INFOCOM National Telecom Award 2010
(Fastest Growing System Integrator).
Mr. Pravin Agarwal, Whole-time Director - Sterlite Technologies says,
"We continue to drive our business through scaling of volume, enhancement
of our global client footprint, stringent focus on costs and advances in
technology. We also ensure a strong connection with the needs of our
stakeholders, which enables us to make strategic decisions, investments, and
organizational moves to support the future."
About Sterlite
Technologies Limited
About Sterlite Technologies Limited: Sterlite Technologies Limited
("Sterlite") [BSE: 532374, NSE: STRTECH], is a leading global provider
of transmission solutions for the telecom and power industries. It is amongst
the largest global manufacturers of optical fibers and is the largest
manufacturer of power conductors, globally.
BOARD OF DIRECTORS
Mr.
Anil Agarwal - (Non-Executive
Chairman)
Mr. Anil Agarwal founded the Sterlite Group in 1976 and has
been overseeing the Sterlite Group's operations since its inception. He has
over 30 years of experience of business strategy, general management and
commercial matters
.
Mr.
Navin Agarwal - (Non-Executive
Director)
Mr. Navin Agarwal has been overseeing the Sterlite Group's
operations since its inception. He has over 20 years of experience of general
management and commercial matters.
Mr.
Arun Todarwal - (Non-Executive and
Independent Director)
Mr. Arun Todarwal, Partner of Todarwal and Todarwal, a firm
of Chartered Accountants based in Mumbai, holds a Bachelors Degree in Commerce
and is a member of The Institute of Chartered Accountants of India. Mr.
Todarwal has rich and varied experience spanning over two decades in Finance
and Audit.
Mr.
Pravin Agarwal - (Whole-time Director)
Mr. Pravin Agarwal has been closely involved with the
Sterlite Group's operations in
Mr. A
R Narayanaswamy - (Non-Executive and
Independent Director)
Mr. A R Narayanaswamy is an Audit Practitioner and runs a
Management Consultancy catering to the Pharmaceutical, Chemical, Engineering
and Hospitality sectors. Mr. Narayanswamy is a Chartered Accountant by
profession and his experience spans over 30 years.
Mr. Haigreve Khaitan - (Non-Executive and Independent
Director)
Mr. Haigreve Khaitan, Partner of Khaitan and Company, a firm
of lawyers based in Mumbai, holds a Bachelors Degree in Legislative Laws. Mr.
Khaitan has varied experience spanning eight years in Commercial and Corporate
laws, Tax laws, Mergers and Acquisitions, Restructuring, Foreign Collaboration,
Licensing etc.
Dr. Anand Agarwal - (CEO and Whole-time Director)
Dr. Anand Agarwal is responsible for Sterlite's range of
Telecom Solutions. Anand Agarwal joined Sterlite in 1995 and has held various
positions including manufacturing, quality assurance and business development.
Prior to joining Sterlite, Dr Anand Agarwal worked with Siemens. He holds a
Bachelor of Technology degree in Metallurgical Engineering from the Indian
Institute of Technology (IIT – Kanpur); and his Master's degree and PhD in
Materials Engineering from the Rensselaer Polytechnic Institute, USA.
Fixed Assets:
- Freehold land
- Leasehold land
- Building
- Plant and Machinery
- Furniture and Fixture
- Data Processing
- Equipments
- Office Equipments
- Electric Fittings
- Vehicle
- Software / License
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.77 |
|
|
1 |
Rs.75.58 |
|
Euro |
1 |
Rs.69.97 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.