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Data networks solutions provider Sterlite Technologies Ltd. expects large opportunities in India linked to Bharat Net and does not see the need for further acquisitions to grow the business.

"We don't see any need for expansion or investment or acquisition right now, but we will continue to evaluate opportunities," Ankit Agarwal, Managing Director of STL Tech, told CNBC TV-18 in an interview.

Agarwal is confident the company is well set up for the 5G rollout in the country for which it has set up additional capacity of cables. "As Bharat Net comes on, we believe we will be very strongly positioned," he said.

The company said on Monday it would sell its entire 80 percent stake in UK-based Impact Data Solutions to Hexatronic Group for an initial consideration of GBP 9.6 million. There will also be additional earnout considerations, which will be capped at GBP 7.2 million and determined based on the actual EBITDA performance of Impact Data Solutions for the full year of 2022.

Sterlite Tech announced the acquisition of a 100 percent stake in Impact Data Solutions Group through its wholly-owned subsidiary exactly three years ago on September 26, 2019. The transaction, an all-cash deal, was worth GBP 12 million. It acquired an 80 percent stake, while the remaining was to be acquired based on an earn-out model over the next few years that never materialised.

Back then, the company said that the acquisition would bring Sterlite Tech a step closer to expanding its total addressable market to $75 billion by 2023. They also mentioned that the deal provides an opportunity for cross-leveraging customers.

Three years later, Sterlite Tech wants to focus on its core business of optical solutions and global services, which it has cited as a major rationale behind this divestment. "STL will continue to evaluate non-core assets and take prudent decisions to re-balance its portfolio and optimise capital allocation," the company said in an exchange filing.

As of date, Impact Data Solutions UK's revenue stood at Rs 133 crore, which is 2.6 percent of the company's overall revenue in FY22.

Shares of Sterlite Tech also took a beating on Monday after it announced the resignation of its CFO Mihir Modi, just two years after he arrived from Zee Entertainment. The CFO will be relieved of his duties from October 14. Agarwal said that Mihir Modi moved on amicably to pursue other interests and that the board is in the process of appointing a new CFO, which would be done in the next one to two months.

Shares of Sterlite Tech were trading 3 percent lower at Rs 154.95, as of 10 am on Tuesday.

Agarwal said that the exit of the CFO will have no impact on the company's debt reduction plan. "We are focusing on generating cash from operations to reduce debt. We have talked about bringing the debt down to sub-Rs 3,000 crore levels," Agarwal said.

The company has reduced its reliance on revenue concentration from India. As of the first quarter of FY23, 27 percent of the overall topline came from India, compared to 65 percent in FY20. Currently, Europe (34 percent) contributes the most to the company's topline. The continent is grappling with multiple macroeconomic and geopolitical headwinds.

Despite the threats, Agarwal believes that there is huge growth potential in the continent as most of these countries are significantly underpenetrated by fibre. He also expects fibre demand in India to double over the next few years.

Other Key Takeaways:

Continuing to see very strong orders from customers

Customers are looking at a 3-5 year contract

Encouraged to secure long-term and profitable contracts

Have increased prices by 7-10 percent, benefits of which will reflect Q2 onwards.