Tejas Networks Q1 profit after tax (PAT) for the first quarter ended June 30, 2018 has grown by 120.3% to reach Rs. 45 crore whereas consolidated revenue increases by 16 per cent to reach Rs. 232 crore.
Operating profit was at Rs. 45.3 crore which was 19.5% of net revenues as against 14.1% for Q1 2018.
Sanjay Nayak, Managing Director and CEO, Tejas Networks said, “We had a solid quarter of revenue and profitability growth. Our India business continues to show robust growth due to increased demand for data and Indian government’s focus in rolling out broadband networks. While we expect India to continue to be a large part of our business during this year, we see strong momentum in our international business, across South-East Asia, Africa, Mexico and USA. During the quarter, we received orders from seven new international customers. With a strong pipeline of orders and many active engagements, we are confident of strong growth this year.”
The increased use of data by consumers, businesses and governments results in an increased demand for Tejas optical transmission equipment. The advent of 5G and IoT, densification of fiber networks and proliferation of cloud services, continues to provide a long-term growth opportunity for Tejas business, since their customers need to enhance their network infrastructure.
Venkatesh Gadiyar, CFO said, “We made a good start to the year with strong revenue growth and increased profitability on account of higher gross margins. As a deep-technology company, we stay committed to invest in R&D, which has seen a year-on-year increase of 37% on a gross basis. We will continue to tightly manage our working capital and expect to see some improvement during the year. We have a strong balance sheet to support our growth and our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, stood at Rs. 508.9 crore.”
During the quarter, Tejas was granted 2 patents resulting in a cumulative grant of 78 patents. As on date, the company has filed 342 patents.