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Sterlite Technologies Ltd.

BSE: 532374 Sector: Engineering
NSE: STRTECH ISIN Code: INE089C01029
BSE 00:00 | 18 Sep 156.40 -5.00
(-3.10%)
OPEN

165.00

HIGH

165.00

LOW

155.40

NSE 00:00 | 18 Sep 156.15 -5.30
(-3.28%)
OPEN

162.00

HIGH

164.00

LOW

155.20

OPEN 165.00
PREVIOUS CLOSE 161.40
VOLUME 57062
52-Week high 179.95
52-Week low 59.80
P/E 17.26
Mkt Cap.(Rs cr) 6,179
Buy Price 155.40
Buy Qty 30.00
Sell Price 156.00
Sell Qty 3.00
OPEN 165.00
CLOSE 161.40
VOLUME 57062
52-Week high 179.95
52-Week low 59.80
P/E 17.26
Mkt Cap.(Rs cr) 6,179
Buy Price 155.40
Buy Qty 30.00
Sell Price 156.00
Sell Qty 3.00

Sterlite Technologies Ltd. (STRTECH) - Chairman Speech

Company chairman speech

The future of Digital Networks has arrived

Dear Shareholders

It is with great pleasure that I bring to you the Annual Report of STL- Sterlite Technologies Limited. During FY20 STL launched end-to-end solutions anddelivered value to customer segments globally to firmly solidify its position as a leadingintegrator of digital networks.

The digital connectivity reached greater heights last year acceleratedeven further by the global lockdowns and led to technological breakthroughs that have thepotential to transform humankind. These breakthroughs are a result of high-capacitynetworks backed by deep fibreisation and network value chain. STL is leading this front byintegrating digital networks for customers - global telcos cloud companies largeenterprises and citizen networks.

Enabling digital inclusion for millions

STL's continuous pursuit of transforming lives with digitalnetworks only grew further in the last financial year. Through strategic collaborationsand initiatives the Company has enabled the digital inclusion of millions of peopleworldwide.

In India STL connected holy caves of Amarnath from Pahalgam as well asBaltal to provide 4G services to everyone during the pilgrimage. STL delivered acomprehensive network design for Mahanet an initiative to bring digital connectivity inthe state of Maharashtra. Garv the rural-connectivity platform of STL is using the powerof technology to provide a multitude of community- centred services in many Indianvillages. STL was also recently awarded the mandate to create a high-speed rural broadbandnetwork from Telangana Fibre Grid Corporation Ltd. (T-Fiber) to provide affordable andhigh-speed broadband connectivity to 6 million rural citizens in Telangana India.

In South Africa STL partnered with Frogfoot to provide Fibre To TheHome (FTTH) infrastructure enabling affordable reliable broadband connectivity to up to20000 homes and lower income groups in the Protea Glen East and West areas of the SouthAfrican township of Soweto.

Strengthening the power of Digital

STL is working with large enterprises to build and modernise theirdigital networks enabling them to leverage the technologies of future. The Company istirelessly working on Varun a project to develop the Indian Navy's communicationsnetwork.

This next-gen network would link multiple Indian naval sites andIndia-administered islands along with setting up of a highly secure data centreecosystem. In another large scale project STL also connected 16 Indian Army sites inKashmir India for national security purposes.

STL also recently transformed Kakinada a city in Andhra PradeshIndia into a smart city with technologies for mobility situational awareness trafficcontrol smart lighting public safety and security.

Navigating a pandemic

Towards the end of FY20 we came across a global pandemic thattransformed the way we live work and interact. COVID-19 created a cloud of uncertaintysurrounding several socioeconomic aspects across the globe. While we continue to navigatethe pandemic I am extremely pleased to see the way STL has been responding to the crisis.

The Company undertook all necessary steps to ensure the safety andwellbeing of its people. STL continued to interact with its customers and partners andensured its promises were delivered on time.

While employee wellbeing and customer engagement were STL'spriorities during the crisis I am glad to share with you that the Company went above andbeyond their call of duty to help the community. From creating disinfectants in-house toorganising online awareness sessions for thousands of people through Project Savdhaan STLmade sure it became a valiant soldier in the fight against COVID-19.

Building networks of the future

With the spread of COVID-19 the Internet connectivity has become thelifeline for billions of people around the world.

Also emerging technologies such as artificial intelligence machinelearning and 5G are now being adopted everywhere. This presents us with a perfectopportunity to truly transform everyday living by delivering smarter networks.

I am extremely excited for STL to play a role in building this future!I look forward to your continued support and encouragement in this journey - to becomeworld's leading integrator of digital networks.

STL is ready for a decade long network creation cycle

Dear Shareholders

We are delighted to share that FY20 was a milestone year for STL. TheCompany was able to record its highest ever revenue of C 5154 crores and maintain a solidorder book of over C 10000 crores with diversified global wins.

FY20: A Transformative Year for STL

This year saw STL taking giant strides towards becoming a leadingintegrator of digital networks for its customers.

This was due to the Company's sharp focus on innovation strategicinvestments and collaborations and key account management. At the same time STLcontinued to maintain its intensity towards environmental sustainability for a betterworld beyond tomorrow.

New global wins built a robust order book for STL across all customersegments—global telcos cloud companies citizen networks and largeenterprises—and key deals included T-Fiber for rural broadband in Telangana TelekomAlbania digital transformation and multi-million dollar contracts in India Europe and theMiddle East

Strategic transformation to solutions-driven account-based organisationwith end-to-end solutions that integrate optical interconnect products virtualised accessproducts network software products and system integration services. This has expanded thetotal addressable market including large-scale transformational projects

Leading a Strong Ecosystem for Next-Gen Solutions

The technology landscape is changing fairly quickly and networks willhave to be ready to adapt to the rapid evolution. STL has made key investments andcollaborations to enhance its expertise to provide future-ready network solutions.

STL invested in Cloud and Data Centre technologies with acquisition ofImpact Data Solutions (IDS) a UK-based company that provides infrastructure forhyperscale data centres. The acquisition solidified STL's position in the cloud anddata centre markets as well as giving it access to two of the top global cloud providers.

The Company strengthened its capabilities in 5G network rollouts byinvesting in ASOCS Ltd. a pioneer in virtual Radio Access Networks (vRAN) and a providerof fully virtualised base station solutions for enterprises and telco networks.

Over the last year STL assembled a strong ecosystem of partners inhardware manufacturing cloud computing and academia. STL partnered with VVDN TechnologiesPvt. Ltd. for design and manufacturing ‘Make in India 5G' solutions andtechnology advancements with IIT Chennai. STL also partnered with VMware a leadinginnovator in enterprise software to deliver 5G Access Solutions for telcos and large-enterprise customers. This ecosystem is a true testament to Atmanirbhar Bharat.

Innovation is in STL's DNA

STL aims to create world-class solutions that can provide next-generation connected experiences. Last year STL launched 4 End-to-end solutionsincluding Opticonn for integrated Optical Connectivity and Netmode for overall networkupgrade and modernisation. It also added 93 global patents to its credit taking the totaltally to a very impressive 358* as of FY20.

STL Academy is also playing a key role in nurturing knowledge andinnovation. The Academy is working tirelessly to create a certified talent pool of smarternetwork professionals. STL also undertakes several initiatives where it collaborates withstartups and innovators to brainstorm and come up with breakthrough technologies to handledigital network needs of the future.

Zero Waste to Landfill

STL's commitment to sustainable manufacturing recently won us a‘Zero Waste to Landfill' Certification by Intertek (US) a leading Total QualityAssurance provider to industries worldwide.

The Company's manufacturing plants in India—Rakholi andDadra Silvassa and Shendra Aurangabad—became the world's first integratedOptical Fibre Cables Speciality Cables and Optical Fibre manufacturing facilities to winthe international certification.

Extensive recycling programmes were implemented in all STL facilitieswhere the by-products generated are recycled for industries that can further use them asinputs for their manufacturing processes. These sustainability initiatives have alsoensured proactive action towards global issues like water management and climate change.

FY21: The Future Beholds a Permanent Shift towards Digital

We are witnessing a paradigm shift towards digital in every walk oflife. Technology adoption has found a new momentum during the COVID-19 crisis where newnormal now includes virtual ways to work interact and entertain. As the world adapts tothese changes we are seeing substantial shifts in usage patterns and traffic in five keyways:

a) from predominantly entertainment to enterprises and cloud use cases

b) from download only to symmetric uploads and downloads - boosted byvideo conferencing

c) from asynchronous to real-time use cases requiring instantaneousresponse time

d) from office networks to ever increasing home networks usage

e) an increase in traffic by 60-70% in the past few months

The businesses are also identifying the right mix of virtualcollaboration tools to be able to work with employees and partners. The digital strategieshave been revamped and new investments are being made to adapt to the changing needs toemployees customers and partners.

An Exceptional Opportunity: Emergence of Next-Gen Digital Network

The impact of exponential data consumption rise and advent of 5G andother emerging technologies on STL's customer segment is significant.

Global telcos are looking at hyper-scale networks that are denserdeeply fiberised and software-defined with computing at the edge. It is estimated thattelcos will invest $1.1 trillion in their networks globally in the next five years and~80% (~$800 billion) will be in 5G.

Enterprises are also looking to strengthen or modernise their digitalnetworks to ride new-age applications for real-time situational awareness and fasterdecision-making.

Cloud companies are looking to advance their data centre hyperscaleconnectivity to come up with comprehensive solutions for communication collaboration andbusiness process while ensuring security and privacy.

Citizen networks are making heavy investments in expanding thebroadband footprints to drive Internet penetration to nearly 50% global population that isstill digitally disconnected.

The next generation of networks are shifting towards networkdensification edge compute open source and virtualisation. We are at the center of thismassive digital transformation and we have a great opportunity to deliver the Next-GenDigital Network - by being the world's leading integrator of digital networks.

Thank you shareholders for your ongoing support and we assure you wewill continue to strive to transform everyday lives by delivering smarter networks.

Anil
Agarwal
Non-Executive Chairman