Sterlite Technologies Limited r ·Jl'"t· f\.' '3 \il ' ·,, J, Ko·•"2' , R., , J, ,· ·;•. 4 '. 1 u 1 M:,r. · :•,t·, , ;~. ,.A cf© Sterlite Tech™ r Mo~.A: +'· • J ~1~;J1 1 _(~ ··:x: +0"' 2C'2"5.1 ~1~ ~ www.sterlitetech.com June 26, 2018 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Phirozee Jeejeebhoy Towers, Plot No. C-1, G Block, Dalal Street, Sandra Kurla Complex, Sandra (East) Mumbai - 400 001 . Mumbai - 400 051. Sub: Submission of Annual Report of the Company for FY 17-18 Ref: Regulation 34 of the Listing Regulations Dear Sir/ Madam, Pursuant to Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), we submit copy of Annual Report of the Company for the Financial Year 2017-18 as approved at the Annual General Meeting of the Company held on Tuesday, June 26, 2018 at 11.00 a.m. 1ST at the Registered Office of the Company at E 1, MIDC Industrial Area, Waluj, Aurangabad -431 136, Maharashtra, India. Kindly take this on your record and acknowledge the same. Yours faithfully, For Sterlite Technologies Limited Amit Deshpande Company Secretary (ACS 17551) Enclosure: As above Sterlite Technologies Limited Annual Report 2017–18 Enabling Digital Transformation With Technology and Innovation Forward- Looking & Cautionary Statement Sterlite Technologies Limited Certain words and statements in this report concerning Sterlite Technologies Limited and its prospects, and other Annual Report 2017–18 Enabling Digital statements relating to Sterlite Technologies’ expected financial position, business strategy, the future development Transformation With Technology and Innovation of Sterlite Technologies’ operations and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of Sterlite Technologies Limited, 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 Sterlite Technologies’ present and future business strategies and the environment in which Sterlite Technologies Limited 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 Sterlite Technologies’ industry, and changes in general economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking These filings are available at: statements, many of which are not in Sterlite Technologies’ control, include, but are not limited to, those risk factors www.nseindia.com and discussed in Sterlite Technologies’ various filings with the National Stock Exchange, India and the Bombay Stock www.bseindia.com Exchange, India. In this Report Corporate Overview 03 04 06 10 Chairman’s Letter to the Sterlite Tech Awards that Message Shareholders in the News Reinforced our Capabilities 12 14 16 24 Financial Financial Management Risk Management Highlights Discussion and Discussion and Analysis Analysis 30 38 40 44 Corporate Social Board of Leadership Team Advisory Board Responsibility Directors Governance Reports 46 74 88 Directors’ Corporate Business Report Governance Responsibility Report Report Financial Statements 98 164 Standalone Consolidated Financials Financials 3 Chairman’s Message Overview Corporate Governance ReportsGovernance Financial Statements Anil Agarwal Chairman, Board of Directors Dear Shareholders, Leading with Technology talent. We deliver on and live our values of: Hunger to learn; Respect It is with great pleasure that I Today’s research drives tomorrow’s and empathise; Promises delivered; present to you Sterlite Tech’s 18th impact. Continued investment in and Keep it simple. Annual Report. We had an excellent research and innovation for fibre and FY18 both in terms of our financial smarter networks is critical. We have performance and in our continued set up several platforms and Centres Creating Shared Value overall impact on the digital of Excellence to enable this. We are ecosystem in India and globally. with Communities also innovating for customer needs We are a technology-led global and have seen our patent portfolio We believe in leveraging our core company, with an expanding footprint grow over the years. We have also competency of digital technology in over 100 countries, where our recently invested in research for to ensure holistic development network technologies are enabling heterogeneous networks which of communities through our ultra-high speed 4G, 5G and FTTx combine the best of wireline and sustainability and corporate social networks to millions of homes and wireless technologies. responsibility efforts. We work with businesses. local communities in areas of health, education and women empowerment At the same time, we are very Steering the World’s to create shared value, and have so far fortunate to be able to play a role in impacted over six hundred thousand driving India’s economic development Largest Digital Inclusion lives. by enabling the world’s largest digital We are committed to driving global inclusion, making in India, creating I would like to thank you for your digital inclusion and playing our jobs and skilling. ongoing support as we continue to role in the nation building process. work towards transforming everyday All this while, we built a culture Through our integrated play of optical living by designing, building and of learning and mutual respect communication products, system- managing smarter networks. for employees and serving local integration services and telecom communities. software, we are steering India As a technology-led towards rapid digitalisation through rural broadband (BharatNet), Smart company that enables Partnering with Global Cities, secure networks for the Indian ultra-high speed networks 2017-18 Report Annual Limited Technologies Sterlite Customers Defence, last-mile connectivity and much more. for millions of homes Telecom service providers and and businesses, we are governments globally are committed Learning and Growing to 5G and taking high-speed fortunate to be able to broadband to millions of homes with Employees impact lives globally. through fibre technology. We play a part in this ecosystem by partnering We believe an open, learning with our customers in over 100 environment that respects diversity countries to bring smarter digital of ideas, people and working styles networks to all parts of the world. is healthy for both individuals and Anil Agarwal, Our global versus India revenue share the business. As we transition to Chairman, Board of Directors stands at about 50% each, even as a solutions company across all our the revenue pie grows at a healthy offerings, and become more global, pace. We are truly a global technology we are consciously driving a culture company. that helps us hire and grow the best 4 Letter to the Shareholders Pravin Agarwal Dr. Anand Agarwal Vice Chairman and Whole-time CEO and Whole-time Director Director Best-performing Year in Sustained Financial the Company’s History Performance The Company has been witnessing Long-term Contracts and sustained growth for several years. Growing Order Book Revenue growth saw a three-year CAGR of 19%, EBITDA of 29% and PAT Sterlite Tech ended FY18 with an of 47%. At the same time, the balance ever-strong open order book of sheet for the last three years was also ` 5,223 crores (73% y-o-y growth). This extremely healthy, with improving is a direct result of several long-term ratios. contracts signed with key customers. Some of these included partnering FY18 was no different. Revenues Dear Shareholders, with British Telecom to enable ultra- for FY18 stood at ` 3,205 crores (up We are delighted to present to you high-speed broadband to the last 24% from FY17), EBITDA at ` 789 Sterlite Tech’s Annual Report for FY18. mile for over 12 million homes and crores (up 45% from FY17) and PAT Last year was the best-performing businesses in the UK; enabling UAE at ` 334 crores (up 66% from FY17). year in the Company’s history, with based du Telecom to roll out smarter ROCE and ROE for the business at the several long-term contracts, the networks; and designing, building and end of FY18 stood at 30% and 28%, highest-ever order booking, and managing the Smart City of Kakinada respectively, while Net Debt to Equity sustained financial performance in Andhra Pradesh. was at 0.7x. quarter on quarter. The Company continues to be While the Company maintained This was made possible with our laser- uniquely positioned to meet the its leadership position in India, it sharp focus on technology innovation; growing demand for fibre. It set up a continued to grow both in India process enhancement; culture shift glass-manufacturing and fibre-draw and internationally, with exports and capability building; and customer tower in Shendra, Aurangabad to accounting for 54% of FY18 revenues. engagement. At the same time, take its current capacity of 30 million The Company’s international revenues the Company continued to use its fkm to 50 million fkm by June 2019. more than tripled from ` 537 crores in strength in core technology to serve This project was inaugurated