With the Q1 cables division sales being 50% of last year’s sales, a revenue growth of 70 to 75% seems to be management being conservative in guidance. It will be interesting to watch the gross margins. Was Q1 a one-time outlier or can it be repeated for few more quarters ?
Both Sterlite Tech and HFCL have reported strong earnings. Sterlite Tech reported 32% growth on a q-on-q basis whereas HFCL reported almost 40% q-on-q rev growth in its telecom/connectivity division. West coast paper (smaller in size than HFCL and Sterlite) should report strong results from its optical cables division. It remains to be seen if they had any slack in capacity utilization to benefit from the strong demand trends. I am expecting an announcement from them on capacity expansion when they report earnings on Nov 6th.
Over the last few weeks, West Coast paper seems to be getting discovered as an AI play. However, it remains relatively undervalued when compared to he much larger Sterlite and HFCL.
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