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Earnings Presentation Earnings Call Q4 & FY25 16th May 2025
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Safe Harbour 2 Certain words and statements in this communication concerning Sterlite Technologies Limited (“the Company”) and its prospects, and other statements relating to the Company’s expected financial position, business strategy, the future development of the Company’s operations and the general economy in India & global markets, are forward looking statements. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of the Company, or industry results, to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, changes in government policies or regulations of India and, in particular, changes relating to the administration of the Company’s industry, and changes in general economic, business and credit conditions in India. The information contained in this presentation is only current as of its date and has not been independently verified. No express or implied representation or warranty is made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. None of the Company or any of its affiliates, advisers or representatives accepts any liability whatsoever for any loss howsoever arising from any information presented or contained in this presentation. Please note that the past performance of the Company is not, and should not be considered as, indicative of future results. Furthermore, no person is authorized to give any information or make any representation which is not contained in, or is inconsistent with, this presentation. Any such extraneous or inconsistent information or representation, if given or made, should not be relied upon as having been authorized by or on behalf of the Company. The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of such revision or changes. Persons should consult their own financial or tax adviser if in doubt about the treatment of the transaction for themselves These materials are confidential, are being given solely for your information and for your use, and may not be copied, reproduced or redistributed to any other person in any manner. The distribution of this presentation in certain jurisdictions may be restricted by law. Accordingly, any persons in possession of this presentation should inform themselves about and observe any such restrictions © 2024-2025 Sterlite Technologies Limited
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Managing Director Ankit Agarwal A believer in purpose-led organizations, Ankit has been leading STL’s growth journey as it transforms billions of lives by connecting the world. He holds sustainability very close to his heart and is leading the company’s ambitious Net-Zero by 2030 target, from the front. Ankit is extremely passionate about improvement in health, education and the environment through digital inclusion. Recognized as a 40 under 40 leader, Ankit is a strong supporter of young and entrepreneurial talent. He is a fitness enthusiast, an athlete, and a long-distance runner and encourages his teams to work towards solid all-round growth at work and in life.
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Strategic Priorities for FY26 4 1 2 3 4 Strategic Priorities for FY26 Focus on gaining market share in Optical business Focus on growth in STL Digital Robust Financials © 2024-2025 Sterlite Technologies Limited
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Strategic priorities for FY26 5 STL Digital Build • Consciously invest in building technology and domain capability • Focus on profitable growth © 2024-2025 Sterlite Technologies Limited Optical Networking Grow • Increasing OFC market share and optical connectivity attach rate • Rapidly building data centre product portfolio • Driving technology & cost leadership
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6 Our STL-ers stepped up to the occasion and repaired the fibre communication network of the Army in J&K! From frontline technicians to backend engineers, every member played a critical role in ensuring uninterrupted network connectivity on the frontline across regions — even under the most challenging conditions! An ode to Nation Building During the recent strife, our team stepped up to a responsibility far greater than routine operations To every single colleague involved — thank you for showing what professionalism, resilience, and service truly mean. You make us all proud!
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Transforming lives through social responsibility initiatives 7© 2024-2025 Sterlite Technologies Limited Swashthya Suraksha: Hybrid healthcare programs across Aurangabad, Gadhchiroli, and Nandurbar districts, impacted >26 Lakh lives. 4523 kWp Solar Panels Installed across plants to reduce Carbon Footprint | Afforestation and water replenishment efforts with 53 villages creating 100 water structures, replenishing 2.69 Mn m3 of water in Maharashtra. Planting & maintaining 4+ Lakh saplings. Jeewan Jyoti: Empowering underprivileged women by training them in vocational skills. Benefitted 5,800+ women. RoboEdge: Empowering students with NextGen skills & focus on Robotics. Covered 11 schools and benefitted 6,000 students
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Committed to net-zero emissions by 2030 MSCI * ESG rating at A Source : 1 Cumulative till Q4FY25, SDG – Sustainable Development Goals 260,000+ MT Waste diverted from landfills (FY19 – Q4FY25) 37,000+ tCO2e Reduced through energy efficiency initiatives (FY21 – Q4FY25) 960,000+ m3 of water recycled (FY19 – Q4FY25) 43.6% Procurement (by value) done locally (FY24) Collaborated with Hygenco for supply of Green Hydrogen Eco-labelled products 16 Aligned with 16 of the 17 SDGs 910,000+ Lives benefitted through STL’s ed-tech & women empowerment programmes (FY19 – Q4FY25) 2.75 mn+ Lives benefitted through STL’s healthcare programmes (FY19 – Q4FY25) 4,523 kWp Solar panels installed; reducing carbon footprint Strong internal governance Two of the Big Four as statutory & internal auditors Executive and Management committees in place Committed to the UN SDGs1 100+ ESG awards won (FY19 – FY25) 8 ENVIRONMENTALLY SUSTAINABLE GOVERNED WITH CARE SOCIALLY RESPONSIBLE STL becomes world’s first optical manufacturer to be zero liquid discharge certified & zero waste to landfill certified * MSCI - Morgan Stanley Capital International © 2024-2025 Sterlite Technologies Limited
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Optical Business; STL’s focus on gaining market share 9 Strategic Priorities for FY26 1 2 Focus on gaining market share in Optical business 3 4 Focus on growth in STL Digital Robust Financials © 2024-2025 Sterlite Technologies Limited
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Three investments cycles coinciding Years are Calendar Years ,* - CAGR, Source: Omdia , FTTH Council Europe, Industry News, Crisil & CRU Multi-year network build cycle >100 Mn US homes await FTTH FTTx in NA in M fkm 39 44 52 58 65 2024 2025 2026 2027 2028 Data Centre market at $139 Bn by 2028 Data Centre Market K MW 2024P 2029P North America 5GFTTx Data Centers Global FTTx deployments 2024 2029P 38% 63% 2024 2029P Blended average fiberized Mobile Sites of total mobile sites >INR 65,000 Cr investments till FY28 (CRISIL) 2023 2028P Installed Data Centre Capacity (MW) Global India © 2024-2025 Sterlite Technologies Limited 10 Source: Analysys Mason, 2024 26% Global optical cable demand growth for data centres in next 5-year Rise in no of Global 5G Operators US$11-15 Billion 509 515 524 535 578 582 585 622 618 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Annual Revenue Potential Key Players: RJio & Bharti Airtel 5G FWA & FTTH with bundled broadband & Pay-TV • India’s $2.5B BharatNet Phase 3 outlay—a 238% YoY jump—set to boost rural broadband and drive growth for telecom and cable players • USA Govt Funding of ~$97 bn for broadband infra (BEAD program $42.5 Bn) Supported by: • DCs giving rise to long haul fibre deployments for inter DC connectivity • Big Tech network capex to exceed $100B (2024–30), rising to 5–10% of total capex (vs. 4–5% historically) Government programs 6.3 Bn: Global 5G subscriptions by 2030, making up 67% of total mobile subscriptions 80%: Share of total mobile data traffic expected to be carried by 5G by 2030 3.6 Bn: Projected 5G Standalone (SA) subscriptions globally by 2030 www.ericsson.com 15.93 25.76 780 2450
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© 2024-2025 Sterlite Technologies Limited AI revolution and Data Centre expansion presenting unprecedented opportunity STL’s AI-DC Portfolio Make in India for the World End to end portfolio for DCs Right fit for GPU-Dense, High bandwidth, low latency DC requirements Enterprise and Data Centre Progressing steadily towards achieving significant revenues from Data Centre and Enterprise suit of products in medium term21% this quarter Achieved *Source- JLL,Mckinsey, Bharatnet.in, Press Releases, STL Analysis Opportunity Global Datacentre Demand could be >3.5x by 2030 70% of Demand for AI-specific infrastructure by 2030 India DC Capacity 950 MW to 1,800 MW (2024–2026) $2 billion capex for data center fibre over a decade AI-Driven Fibre Demand 70% higher fiber density in AI data centers than traditional ones 36x more fiber required for GPU-dense vs. CPU racks Fibre explosion in DC Investment in Fibre Estimated global data centre capacity demand, gigawatts AI-Optimised : Scalable and future ready 44 62 83 102 124 156 38 40 45 50 56 64 2025 2026 2027 2028 2029 2030 82 103 128 153 181 219 Non-AI Workload AI Workload ~$7T capital outlay projected for data centers by 2030
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Global demand poised for modest rebound in 2025, long term outlook remains stable 12 0 100 200 300 400 500 600 700 2022 2023 2024 2025 2026 2027 2028 577 536 524 538 562 587 612 North America Europe India APAC (ex China, India) RoW China STL’s focus markets North America expected to lead demand growth, with 2025 YoY demand expected to rise 10.1% OFC Demand (Mn Fkm) Source: CRU TCMO Feb, 2025, STL Analysis Reflections As per CRU; • 2025 shows promising signs, with global consumption projected to grow 2.7% YoY after two years of decline. • Recovery in 2025 is driven by rising US activity, India’s BharatNet Phase III, a booming global data centre market, and scattered growth pockets worldwide. Future Outlook As per CRU; • World demand ex-China expected to grow by ~8.2% in mid term. • North America is set to lead in 2025, fuelled by private investment and BEAD activity. CRU projects record 116M F-Km consumption, with strong AI and data centre demand driving growth despite political uncertainties. Calendar Year © 2024-2025 Sterlite Technologies Limited Global Demand Ex. China (Mn Fkm) 293 280 285 303 332 362 391 8.2% CAGR
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“Where we have fiber, we win!” AT&T continues to ramp towards their objective of reaching 50 million-plus total locations with fiber by 2029 through a combination of organic build, Gigapower and other commercial open access agreements. : April 23, 2025 “We’re going to have a path to get to 40 million homes of fiber!” Verizon's $20 billion play for Frontier Communications is a clear indicator that the company is pressing forward with a plan to expand its fiber footprint : April 21, 2025 Fiber is the backbone of all digital infrastructure 5G, FTTH, AI-DC all bank on the DNA that is optical fiber Tim Höttges argued that the build-out of mobile communications and optical fiber in Germany should be of “overriding public interest.” In the US, Höttges sees opportunities for further growth through the acquisition of the fiber-optic companies Metronet and Lumos in partnership with investors. The target in the U.S. is for a good 12 to 15 million fiber-optic households by 2030. : April 9, 2025 “Infrastructure for the era of AI!” Hollow Core fibre technology will ensure Azure can better serve its customers by allowing us to continue to grow and expand our global infrastructure, while also creating a higher capacity, more resilient and overall faster network to meet the growing demands of Cloud and AI services : March 20, 2025 An increase of ~44,400 R kms of fibre in FY 25! Airtel continues to invest in their network in terms of capacity and new geographical coverage along with significant investment in data centres, home broadband and other lines of business. : May 13, 2025 “We saw AI-based capacity spike coming” Bill Long, Zayo’s chief product officer mentioned that in the past, Zayo’s average long-haul order ranged from 8 to 12 fibers. All of that changed 12-18 months ago, when customers started requesting counts from 144 all the way to 432 fibers.: Feb 3, 2025 Source: Newspaper Reports, Investor Decks & Insights
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Technology update BABA compliant optical products from Lug-off plant ‘First in the World / India’ India’s First Quantum-Secured Network – Breakthrough with Multi-Core Fibre Green Hydrogen - Pioneering Sustainability in the Optical Industry 160 micron fibre – World’s Slimmest Optical Fibre ● Hollow-Core Fibre (HCF): Pioneering low- latency, low-loss communications for future networks. ● AI–Fibre Optic Sensing (Sensron) solution sees expanding commercial adoption Building Next-gen capability IP Portfolio 740 patents (filed and granted) 76 new patents filed in FY’25 “STL’s AI-led Data Centre portfolio is a significant innovation for the AI ecosystem and will also strengthen India’s data centre capabilities.” -Shri Jyotiraditya Scindia, Indian Telecom Minister. Government Recognition OFC: ● IBR Portfolio extended to higher fibre count Optical Connectivity: ● NanODC compact closure up to 24F Splice capacity added. ● OptoFit Pre connectorized drop solution co developed with European customer. Copper Cable : Secured CPR certificates and customer approvals for SIGNAL Copper cables ( TRACK CIRCUIT) from large Railway cos in Italy Awards and accolades ● Recognized by TEPC (Bharat Telecom 2025) in the category ‘Telecom Products (Hardware & Software) – Large Enterprises’ for driving global exports through Make-in- India innovation. ● ET Telecom Award for Impactful IoT Solution of the Year - Sensron (FoS) ● OFC Rakholi, SCB & OC Dadra facilities has been recommended for Social Compliance Recertification (SA 8000:2014) by the certification body Intertek. ● Exceed Occupational Health & Safety Platinum Award 2024 New Product Launches
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15Source : CRU, STL estimates Global (ex-China) OFC market share FY25FY24 8% 8% Optical connectivity attach rate Attach rate = Optical connectivity revenue / OFC revenueMarket Share = STL Sales Volume / Total Market Demand Stable OFC market share on YoY basis. Focus on re-gaining the market share Significant YoY Expansion in Attach Rate Market share and optical connectivity attach rate © 2024-2025 Sterlite Technologies Limited FY24 FY25 22% 13%
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Optical Networking Business financial highlights 16 Q4 FY25 revenue at INR 979 Cr. • Improved volumes and revenues on YoY basis Q4 FY25 EBITDA margin at 12.8% • Improved EBITDA margins on YoY basis 810 1,027 924 Q1FY25 Q2FY25 Q3FY25 88 133 119 10.9 12.9 Q1FY25 Q2FY25 12.9 Q3FY25 777 979 Q4FY24 Q4FY25 59 125 7.7 12.8 Q4FY24 Q4FY25 Revenue* (INR Cr.) EBITDA* (INR Cr.) EBITDA % * from continued operations© 2024-2025 Sterlite Technologies Limited 3,830 3,741 FY24 FY25 619 464 16.2 12.4 FY24 FY25
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17 Well positioned to grow the Optical Business by building global AI Digital Infrastructure 1 – as of Q4FY25, total filed and granted Local capacities: Completed capacity expansions, positioned closer to focused markets and well placed to win in the market - seeing good traction in the North American market 1 Product development & innovation: 740 patents1 with continued focus on product innovation creating category first products. Focus on data centre product portfolio 3 Cost structure: Actions taken are starting to show positive effects and we continue to focus on both the variable & fixed costs 2 Customer focus: Co-developing end-to-end customized products and solutions – continue scaling the Optical connectivity business 4 © 2024-2025 Sterlite Technologies Limited Trade tailwinds: US-China tariff dynamics opening new opportunities for India-sourced manufacturing – well-positioned to capture incremental demand 5
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Focus on growth in STL Digital 1 8 1 Strategic Priorities for FY26 2 Focus on gaining market share in Optical business 3 Focus on growth in STL Digital 4 Robust Financials © 2024-2025 Sterlite Technologies Limited
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Continued growth momentum in STL Digital 19 Well poised to grow with robust order book and right team Financials 26 Global customers Customers Team Identity • Delivery Centre in Bangalore • Offices in India, US & UK Service offerings • Data analytics & AI • Cloud & cyber security • Enterprise SaaS services • Product engineering Industry vertical • Technology • Life sciences & healthcare • Manufacturing • Energy, resources & utilities Open Order Book 31st Mar’25 FY25 Revenue INR. 290 Cr INR. 451 Cr 1185 Consultants 18% Women © 2024-2025 Sterlite Technologies Limited ▪ Strong deal momentum with repeat wins from global clients across manufacturing, healthcare, technology, and telecom sectors ▪ Led Vedanta’s Digital Transformation with RISE with SAP for 8 Companies, Serving 15,000+ Users Globally. ▪ Diversified project wins across engineering, enterprise apps, and support services reflect strong customer confidence ▪ Strong partnership ecosystem. 40+ Active technology partners
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-17 -15 4 Digital business financial highlights 20 Q4 FY25 Revenue at INR 78 Cr. • Revenues stable q-o-q basis Q4 FY25 EBITDA at INR 5 Cr. • Sustained profitable growth, delivering consecutive EBITDA-positive quarters 71 64 77 Q1FY25 Q2FY25 Q3FY25 Q1FY25 Q2FY25 Q3FY25 78 78 Q4FY24 Q4FY25 -17 5 Q4FY24 Q4FY25 Revenue* (INR Cr.) EBITDA*(INR Cr.) * from continued operations© 2024-2025 Sterlite Technologies Limited 298 290 FY24 FY25 -83 -23 FY24 FY25
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CFO- Optical Networking Business Ajay Jhanjhari Ajay is Chartered Accountant and has a rich experience of nearly 15 years bring a deep expertise in the areas of fundraising, capital allocation, merger & acquisition, treasury management, and Business partnering. As the Chief Financial Officer at STL, his vision is to bolster the company's strategy to deliver consistent shareholder value and profitable growth. He joined STL as a Management Trainee and has held various leadership positions within the company before becoming CFO for Optical Networking Business last year.
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Focus on maintaining operating profitability & reducing debt 2 2 1 Strategic Priorities for FY26 2 Focus on gaining market share in Optical business 3 Focus on growth in STL Digital 4 Robust Financials © 2024-2025 Sterlite Technologies Limited
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44 146 5.2 13.869 69 111 8.0 6.5 11.1 23 STL financial highlights Q1FY25 Q2FY25 Q3FY25 EBITDA %EBITDA* (INR Cr.) 843 1,052 Q4FY24 Q4FY25 * from continued operations (after minority Interest & share of JV) -48 -18 -24 Q1FY25 Q2FY25 Q3FY25 PAT* (INR Cr.) Q4 FY25 Revenue INR 1,052 Cr; FY25 INR 3,996 crores 25% YoY growth in Q4 FY25 Q4 FY25 EBITDA margin at 13.8%; FY25 11.3% 232% YoY growth in Q4 FY25 Q4 FY25 PAT loss at INR -40 Cr ; FY25 INR -123 cr Quarterly losses narrowing on YoY basis 872 1,074 999 Q1FY25 Q2FY25 Q3FY25 Revenue* (INR Cr.) © 2024-2025 Sterlite Technologies Limited Q4FY24 Q4FY25 -82 -40 Q4FY24 Q4FY25 4,083 3,996 FY24 FY25 527 452 12.9 11.3 FY24 FY25 -57 -123 FY24 FY25
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Diversified revenue mix Geographical distribution Revenues* (INR Cr.)Large order wins in Q4 FY25 30% 25% 51% 55% 18% 20% 1% 1%1% FY24 4,083 Americas EMEA India RoW 24* from continued operations© 2024-2025 Sterlite Technologies Limited FY25 • Secured re-entry with a key US customer for high fiber count OFC solutions, marking a strong comeback after a year. • Won orders from a leading OSP in the Americas for both OFC and Optical Interconnect, driving regional traction. • Closed a technology outsourcing deal with a prominent Indian industrial conglomerate under STL Digital. • Continued strong engagement with a top networking player in India, resulting in repeat orders for connectivity solutions. 3,996
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Order Book Highlights 25 4,806 4,378 Q3FY25 Q4FY25 Open order book (INR Cr.) 667 3,710 Q1FY26 FY26 and beyond Order book spread (INR Cr.) © 2024-2025 Sterlite Technologies Limited INR 250 Cr Reduction Due to Descoping – FY25
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Consolidated Financials: Abridged Version P&L (INR Cr.) Q4FY24 Q3 FY25 Q4 FY25 FY24 FY25 Revenue* 843 999 1,052 4,083 3,996 EBITDA* 44 111 146 527 452 EBITDA % 5.2% 11.1% 13.9% 12.9% 11.3% Depreciation 81 80 79 314 316 EBIT* -37 31 67 213 136 Finance Costs 71 58 65 293 241 Exceptional Items 0 0 0 0 0 PBT* (Before share of Associates and JV) -108 -27 2 -80 -105 Tax -15 -12 -3 -5 -33 Net Profit* (After minority Interest & share of JV ) -93 -15 5 -71 -72 Profit ( loss ) from discontinued operations 11 -9 -45 14 -51 Net Profit -82 -24 -40 -57 -123 © 2024-2025 Sterlite Technologies Limited 26* From Continued operations, Key Updates • Net Debt stands at 1,350 Cr at FY25 • Debt to Equity ratio stands at 0.68 at FY25
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Global Services demerger status: Completed; Listing Expected in Q1 FY26 27© 2024-2025 Sterlite Technologies Limited Board / Audit Committee Approval for Demerger Stock Exchange Filings and receipt of In-principle Approvals NCLT Filings and Approvals (Completed) Listing of Resulting Co (Post receipt of NCLT Order) Completed – May 2023 Completed –Sept 2023 • RD / Company Registrar and Final NCLT Approval received. • Scheme filed with NCLT, Mumbai • Approval from shareholders (99.98%) , secured & unsecured creditors (100%) received Completed –July 2024 Completed – Feb 2025 • Filing of NCLT approved Scheme with ROC • Allotment of Shares by Resulting Co to shareholders • Listing of Resulting Co shares Legend Completed Ongoing In Progress Expected in June / July 2025 Completed – March 2025 Completed
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Demerger Success: STL Networks 28© 2024-2025 Sterlite Technologies Limited Strategic Separation Completed STL demerged its Global Services Business into STL Networks (effective March 31st, 2025), aligning with its portfolio simplification and growth strategy. New Brand Identity 'Invenia': The demerged entity now operates under the brand Invenia, with a focused vision on delivering large-scale, digital infrastructure-led ecosystems. Listing Status STL Networks shares are scheduled for listing on stock exchanges in June / July 2025, with shareholders receiving 1:1 share entitlement based on holdings as of April 24, 2025. Leadership Mr. Pankaj Malik has been appointed CEO of STL Networks, bringing leadership strength and execution experience to drive the next phase of growth. 01 02 0403
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Summary focus areas • Drive technology and cost leadership to be in ‘Global Top 3’ • Increase sales in focused markets • Increase optical connectivity growth and attach rate • Rapidly building data centre product portfolio • Play a crucial role of a connectivity company in building global Digital Infrastructure • Continue to grow revenue with focus on profitability 29 Optical Business Digital Business © 2024-2025 Sterlite Technologies Limited
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Lets answer your queries! © 2024-2025 Sterlite Technologies Limited 30
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beyond tomorrow 31© 2024-2025 Sterlite Technologies Limited