Aksh Optifibre Ltd. — Earnings Release 2019

May 27, 2019

AKSH

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AKSH OPTIFIBRE LIMITED

A-25, 2[nd] 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

May 27, 2019

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 and Earning 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 Financial Results for the quarter and year ended March 31, 2019.

We request you to take the above on records.

for Aksh Optifibre Limited

Digitally signed by GAURAV GAURAV MEHTA DN: CN = GAURAV MEHTA, C = MEHTA IN, S = Delhi, O = PersonalDate: 2019.05.27 18:10:55 +05'30'

Gaurav Mehta Chief-Corporate Affairs & Company Secretary

We smarten up your life..[TM ]

Regd. Office : F-1080, RIICO Industrial Area Phase-lll, Bhiwadi – 301019 (Rajasthan) INDIA Phones : +91-1493-220763, 221333 | Fax : +91-1493-221329

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Aksh Optifibre Reported its Q4’19 and Financial year’19 Results .

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 Q4 and Year end FY19 financial results. Aksh Optifibre reported its financial results for FY2019. On standalone basis Company reported a Total Income of Rs 536 crore, as compared to Rs 594 Crore in the corresponding period previous year. Company recorded EBITDA of Rs 99 Crore, as against Rs 74 Crore previous year on standalone basis and reported EBITDA margins of 19%, as compared to 12% in the previous year. Global meltdown in Fibre prices and demand slowdown in China impacted the revenue in the quarter gone by, also in order to comply with Indian accounting standards (Ind As 115) the Sales Revenue and Profit Before Tax is lower by approx Rs 20 Crore and Rs 4 Crores respectively for the year ended March 31, 2019. However, encountering the short term industry slowdown, company has taken certain measurable proactive initiatives in the Q4 FY19, which may have positive outcomes in the quarters to come.

						Rs Crore
Particulars	Standalone Financial Results				Consolidated
	Q4'19 Q3'19 Q4'18		FY19 FY18 YoY		FY19 FY18 YoY
Total income	78 140 171		536 594 -10%		532 627 -15%
EBITDA	0.46 26 26		99 74 34%		90 76 19%
EBITDA Margin	1% 19% 15%		19% 12%		17% 12%
PAT	-11 9 9		28 23 23%		11 21 -48%
PAT Margin	-14% 6% 5%		5% 4%		2% 3%
EPS(Rs/Share)	-0.65 0.54 0.55		1.73 1.40 24%		0.66 1.28 -48%

Projects update

Due to the current slowdown in fibre demand, Company has extended the commission of its Dubai Optical Fibre drawing plant of 4 Million FKM capacity, and expect it to be commissioned by Q3 of FY20. Upon commissioning the total Optical Fibre drawing capacity of the company will become 7 Million FKM. The ongoing Optical Fibre capacity expansion will enhance company’s backward integration capabilities and will support its cable capacity in a sufficient manner.

Mr. Satyendra Gupta, Managing Director of Aksh Optifibre Limited, commented , “On the back of downward spiralling of optical fibre prices globally and lower demand growth in China, significantly impacted the financial performance of the company in the quarter gone by. Company’s initiatives towards reengineering the business processes and logistics for its FRP business segment, along with the global fibre market softening has led to the downfall in sales turnover. However, long term fundamentals for optical fibre sector are well intact. The management expects major emphasis to be given to augment Digital India programme under 2[nd] term of Honourable Prime Minister Shri. Narendra Modi for which the company is fully prepared to harness any sizable opportunity that comes its way. As an organisation, company’s management remains focused mainly towards growing its products business and is extremely cautious towards venturing into any risky turnkey businesses. We are hopeful that the strong measures that we have taken today, will reward us with better cash flows and healthy product based order book in times to come”.

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Industry Outlook

With India voting Prime Minister Shri. Narendra Modi-led Bharatiya Janata Party (BJP) back to power with a resounding mandate, the technology and start-up sectors are anticipating the speedy implementation of policies that will boost the growth of ‘Digital India,’. The coming five years should be spent effectively implementing these policies, and infusing technology into governance. With the second term, it is expected that the Government will utilise the mettle of India Inc and emerging technologies such as artificial intelligence, machine learning, Internet of Things and big data to solve the socio-economic issues of the country.

Developed countries such as US, South Korea and along with China have already started preparing for the upcoming commercial launch of 5G services. It is being learned that many carriers have started constructing and installing necessary 5G base stations at the predetermined launch cities. It is also observed that in South Korea, three major mobile operators had deployed more than 50,000 5G base stations prior to launching commercial 5G services.

Further, 5G base station installations and deep fibre deployments will strengthen global fibre demand moving forward. A major telecommunication equipment provider expects that 6.5 million base stations will be deployed in 5G networks across the world by 2025. Industry experts propagate that 5G networks will require a much denser array of radio heads, resulting into higher number of base stations per coverage area, which will translate into manifold increase in demand for Fibre to provide 5G network backhaul. It is estimated that 5G will require more than 8-10 times of fibre as compared to that of 4G, resulting in the higher demand for fibre.

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

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Digitally signed by GAURAV GAURAV MEHTA DN: CN = GAURAV MEHTA MEHTA, C = IN, S = Delhi, O = Personal Date: 2019.05.27 18:11:27 +05'30'

Gaurav Mehta Chief - Corporate Affairs & Company Secretary 27[th ] May 2019