Anil Agarwal stock engaged in providing end-to-end data network solutions to build data center networks, 5G Networks, and many more, jumped upto 6 percent in the day’s trade following entry into the AI-led Data Centre segment.
Price Action
With a market capitalization of Rs. 6,078 Crores, the shares of Sterlite Technologies Limited were trading at Rs. 124.60 per equity share, up 3 percent from its previous day’s close price of Rs. 121.10.
What Happened
Sterlite Technologies Limited has announced that it has marked its entry into the AI-led Data Centre segment with a full-fledged demonstration of its integrated Optical cable, connectivity and interconnect offerings at the India Mobile Congress 2024.
Sterlite Technologies Limited has developed a sophisticated, integrated portfolio to cater to the unique cabling needs of GPU-dense data centers. Optical fibre cabling in AI data centers must deliver high bandwidth, low latency, and high density to meet the volume and complexity of AI workloads.
Tech Features
STL’s Intelligently Bonded Ribbon (IBR) cable technology is the engine behind fiber densification in AI data centers. STL was the second in the world and the first in India to offer mainstream high-density IBR optical products.
The company’s flagship AI-DC portfolio, designed for accelerated computing, is strongly anchored in its IBR optical cables and bolstered with a suite of data centre-specific connectivity products like connectors,patch-cords, fibre distribution and management systems, racks, cabinets, and servers.
Management Comments
Ankit Agarwal, Managing Director and CEO. Optical Business, STL, said “The linkage between AI, Data Centres, and Optical Fibre forms the holy trinity of future connectivity. We have been deeply involved in building a suite of products that fit right into the most dense connectivity environments ever created,”
He further added, “We are excited to showcase our Make in India AI-DC portfolio to our customers and believe that this will serve as a one-stop solution for their data center cabling needs.”
Telecom Minister Comments
The Telecom Minister Commenting on the linkage between Artificial Intelligence, Data Centres, and Fibre Connectivity, said: “STL’s AI-led Data Centre portfolio is a significant innovation for the AI ecosystem and will also strengthen India’s data centre capabilities.”
About the Company
Sterlite Technologies Limited is one of the largest Optical Fiber and Optical Fiber cable manufacturers in the country, engaged in providing end-to-end data network solutions to build data center networks, 5G Networks, and many more. It manufactures and supplies optic fiber, cables, and optical interconnect devices and provides other related services.
Sterlite Technologies Limited has a global presence across 75+ countries, with 10 global manufacturing facilities, and 3 innovation centers, and, it has 715+ patents that have been filed and granted.
As of Q1FY25, Sterlite Technologies Limited has a strong order book of Rs. 9,883 Crores, with 60 percent of the total orders received from Telcos, 25 percent from Citizen Networks, and 15 percent from Enterprises.
Financials & Ratios
Its Revenue from operations declined by 20 percent YoY from Rs. 1,522 Crores in Q1FY24 to Rs. 1,218 Crores in Q1FY25, accompanied by a profit of Rs. 52 Crores to a loss of Rs. 48 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of -2.87 percent and a return on capital employed (ROCE) of 5.25 percent. It has maintained a high debt-to-equity ratio of 1.77.
Written by: Bharath K.S
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