Aksh Optifibre Ltd. — Earnings Release 2019

Oct 23, 2018

AKSH OPTIFIBRE LIMITED

A-25, 2nd Floor, Mohan Co-operative Industrial Estate, Mathura Road, New Delhi-110044, INDIA Tel.: +91-11-26991508, 26991509 Fax : +91-11-26991510 Email : aksh@akshoptifibre.com Website : www.akshoptifibre.com CIN NO. : L24305RJ1986PLC016132

October 23, 2018

To

National Stock Exchange of India Limited	BSE Limited
Exchange Plaza, Bandra Kurla Complex,	Phiroze Jeejeebhoy Towers
Bandra(E), Mumbai – 400005	Dalal Street, Bombay-400 001

Subject: Press Release pursuant to provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015

Dear Sir,

Please find enclosed herewith the Press Release in respect of Unaudited Financial Results for the quarter ended September 30, 2018.

We request you to take the above on records.

for Aksh Optifibre Limited GAURAV MEHTA Digitally signed by GAURAV MEHTA DN: c=IN, o=Personal, postalCode=110075, st=Delhi, 2.5.4.20=7c618627d1ea30fce624b4326b 97ff1238db8e18f594d6e234332bdc1952 09de, serialNumber=c780c3afdbbd7ba9e7c87 a577d9b721c9f6ccf0f7f5f6d1f1a5ce14c3 6be9444, cn=GAURAV MEHTA Date: 2018.10.23 11:27:24 +05'30'

Gaurav Mehta Chief-Corporate Affairs & Company Secretary

We smarten up your life..TM

Aksh Optifibre Recorded Highest Ever Quarterly Turnover and Profitability.

Press Release

Aksh Optifibre Limited [BSE: 532351 | NSE: AKSHOPTFBR], the leading manufacturer of Optical Fibre, Optical Fibre Cables and Fibre Reinforced Plastic Rods and e-Governance & Turnkey service provider reported its Q2 and Half Year FY19 financial results.

Aksh Optifibre reported its all-time highest quarterly financial performance for Q2 FY2019. During the quarter gone by the Company achieved its all-time highest quarterly turnover along with all-time highest Net Profit. EBITDA margins for the Company stood at 23%, as against 11% in the corresponding quarter of previous year. Profit after Tax at Rs 17 Crore reported a significant increase of 237% as against Rs 5 Crore in the corresponding quarter in the previous year.

									Rs Crore
Particulars	Standalone Financial Results
	Q2'19	Q1'19	Q2'18	QoQ	YoY		H1'19	H1'18	YoY
Total income	178	141	145	26%	22%		319	268	19%
EBITDA	40	32	16	27%	147%		72	28	156%
EBITDA Margin	23%	23%	11%				23%	11%
PAT	17	13	5	30%	237%		30	7	319%
PAT Margin	10%	9%	3%				9%	3%
EPS (Rs/Share)	1.04	0.80	0.31	30%	235%		1.84	0.44	319%

The Company has successfully commissioned its FRP manufacturing facilities in China. With this, the Company is on the verge of completing all its announced capex, except Dubai Optical Fibre plant, which is also due to get completed within the stipulated timeframe.

Mr. Satyendra Gupta, Deputy Managing Director at Aksh Optifibre Limited, commented, "With most of the company's expansion projects already in place, we have now shifted our complete focus on enhancing company's operational efficiencies, with emphasis on expanding the market share for all the product lines in which it operates. The half year gone by has delivered some exceptional results which are rightfully reflected in our financial numbers and management is further hopeful to continue this increasing trend in the near future. Recent softening of optical fibre prices globally and also easing out the availability of fibre has led to the increased demand for optical Fibre cable and allied products and it appears that the same demand will keep surpassing the given supply side constrains, especially for the domestic optical fibre cable market. The capex incurred by the company in the recent past has started yielding positive results and going forward it will add to the top line as well as the bottom line of the company".

Industry Outlook

Witnessing the second most rapid year-on-year growth amongst countries installing optical fibre cable, India's optical cable consumption in H1 2018 was 19.1% higher compared with H1 2017. India's optical fibre demand witnessed a significant boost from the second phase of the Bharatnet national program. This program is extending fibre to 250,000-gram panchayats. The prestigious Bharatnet program has provided major impetus to fibre deployment activity in late 2017 and 2018, and other operators, including CATV and telecom companies are also deploying fibre to support broadband service businesses. The main carrier Reliance Jio which has disrupted India's telecom industry by rapidly building up a 4G network, basing this success, Jio is turning its interest to fixed broadband – FTTH services which will provide major demand push for fibre deployment across the country in the times to come.

So far, 2018 world quarterly shipments of bare fibre averaged 149 million fibre-km for the year, the full-year shipments are expected to cross 596 million fibre-km, which is 11% higher than the average quarterly rate in 2017. Industry estimates pronounce that the world's total preform capacity has also increased in 2018, therefore reducing the major demand supply gap which existed in 2017. World fibre demand is expected to move up further after China Mobile submits its orders, which is expected sometime in Q4 2018. Chinese carriers have already started preparing for 5G deployments. In August 2018, China Mobile floated a tender for procuring 83,200 units of 4G "pico-station" equipment. A pico- station or picocell is a small cellular base station typically covering a confined area, such as in-building. With the upcoming 5G era, the demand for deep fibre penetration will greatly increase the number of micro-station and pico-station facilities. 5G will be one of the key growth drivers for optical cable demand through the next decade.

About Aksh Optifibre Limited:

Incorporated in 1986, Aksh Optifibre Limited is an over 34 year old organization which started with the manufacturing of Optical Fibre (OF) and Optical Fibre Cables (OFC) in 1994. In 1996-97 Aksh acquired Fibre Reinforced Plastic Rods (FRP) business which is a key raw material for Optical Fibre Cables. AKSH went Public in the year 2000 and is listed on National Stock Exchange and Bombay Stock Exchange. AKSH OPTIFIBRE LIMITED is one of the leading providers of transmission solutions for the telecom industries globally. Various products & services are embedded in our diversified portfolio. The Company also delivers to e-governance services through its flagship programme 1 STOP AKSH with Government of Rajasthan and Aadhaar enrolment with UIDAI.

For more information kindly contact:

Investor Relations*:* Pavleen Taneja - pavleen@akshoptifibre.com

Gaurav Mehta Chief - Corporate Affairs & Company Secretary 23rd October 2018