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Operating Margin Guidance Of Sterlite Tech. Lowers

Equity_Pandit

Sterlite Technologies Ltd. lessen its operating margin follow through for the second time in the last one year on account of a difference in revenue mix.
The company, in the conference call after first-quarter financials, had guided earnings before interest, tax, depreciation and amortisation margin at 24-25 percent. The supplier of fibre cables cut its margin guidance to 18-20 percent from 22-23 percent forecast after the third quarter, it said in a conference call post the results for the January-March period.
the services segment contributed 52 percent to the company’s revenue, the rest came from product sales. This change in revenue mix, according to Sterlite Technologies, led to about 300-basis-point drop in margin over last year.
The services segment contributed 52 percent to the company’s revenue, the rest came from product sales. This change in revenue mix, according to Sterlite Technologies, led to about 300-basis-point drop in margin over last year. The company’s Ebitda margin declined for the third straight quarter in the three months ended March as low-margin services business contributed more to its revenue.

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