Sterlite Update

30 October 2024

Demerger Announcement

• Approval Received: The demerger has been approved by the NCLT and will take effect in late September 2024.
• Share Distribution: Each SPTL shareholder will receive one share of the new entity, SGL5, for every SPTL share held as of the record date.

Business Performance

• Record Order Book: The GPS business concluded FY24 with an all-time high order book of ₹6,705 Crores, achieving the highest annual EBITDA.
• Project Milestones: Significant progress in key projects is on track for commissioning by Q3-FY25, including major transmission lines expected to generate substantial annual tariffs.

Financial Highlights

• Income Growth: The demerged SPTL reported a total income increase of 47.1% year-on-year, while the GPS Co saw a 94.1% rise.
• Profit Margins: Despite revenue growth, EBITDA margins for Infra business decreased due to higher costs and deferred revenue recognition.

Future Outlook

• Capacity Expansion: A capital expenditure of ₹450 Crores is planned to increase conductor capacity by 45% and expand into solar and EHV cable segments.
• Projected Growth: Anticipated revenue growth of 30% up to FY26, with a PAT growth forecast of 62%, aligns with market demand trends.

Corporate Actions

• New Joint Venture: Formation of a new Transmission Infra JV platform (SGL-32) has been completed, aiming to develop and operate power transmission projects in India.
• Debt Management: Financial closure of ₹1,373 Crores for a transmission project and additional debt disbursements across various infrastructure projects have been achieved.

Awards and Recognition

• Great Place to Work Certification: Sterlite Power has been recognized as a top employer for three consecutive years, reflecting its commitment to employee satisfaction.

Summary of Business Lines

• Infrastructure Development: Focused on greenfield power transmission infrastructure under long-term concession agreements in India and Brazil.
• Global Products & Services: Leading manufacturer of power conductors and cables, with significant export operations.
• Convergence Initiatives: Development of optical fiber telecom infrastructure through OPGW technology, establishing a unique market position.