Tejas Networks Q1 revenue down by 50.6%

Tejas Networks first quarter consolidated revenues (net of pass through component sale) were Rs. 77.4 crore, a Y-o-Y decline of 50.6% resulting in a loss after tax of Rs. 9.8 crore as compared to a profit after tax of Rs. 5.9 crore for corresponding period last year.

Sanjay Nayak, Managing Director and CEO, Tejas Networks said, “Our revenues during the quarter were impacted due to COVID-19 lockdowns affecting our ability to fulfill customer orders. During the quarter, we saw a strong new order intake of Rs. 188 crore, our total order book to Rs. 593 crore, which is the highest we had seen in the last 8 quarters. In addition, we secured wins from multiple Tier-1 operators for our GPON-based home broadband products. As a leading pure-play telecom product company from India, we are well positioned to capitalize on the opportunities opening due to the government of India’s focus to create ‘Atmanirbhar Bharat’.

Export revenues showed robust YoY growth of 52% during the quarter. In addition, Tejas Networks won over million dollar deals each, from 3 different international customers in Asia, Africa and Mid-East. We are seeing new opportunities coming our way, as our global customers look to de-risk and diversify their supply chain investments in the evolving geo-political environment.”

Post-COVID, with more people working remotely and many video services being accessed from homes there has been a significant increase in data traffic on telecom networks, which is driving demand for high-bandwidth broadband connections. Telecom operators are increasing their capex to address fiber-to-the-home broadband requirements and to augment the capacity of their optical networks both of which are being addressed by the company’s products.

“Our stronger order book position even during the pandemic, is a clear testimony to the resilience of our business. We are more relevant to our customers today than in the past,” said Sanjay Nayak.

Venkatesh Gadiyar, CFO, Tejas Networks said, “We continue to be a debt free company and our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, stood at Rs. 272 crore. We managed our working capital well, despite seeing certain payment delays from customers due to COVID-19 situation. While the uncertainty due to the economic impact of COVID-19 remains, financially we are well positioned to invest in growth opportunities in front of us.”

As on date, Tejas Networks has filed for 349 patents of which 116 patents have been granted.

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