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Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the second quarter ended September 30, 2020. Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build high-speed communication networks.
For Q2 2021, consolidated net revenue was Rs. 106.8 crore, which was a YoY increase of 25.5%, resulting in a profit after tax of Rs. 4.5 crore, as compared to a loss of Rs. 4.4 crore for corresponding previous period.
For the half year ended September 30, 2020, net revenue was Rs. 184.2 crore, which was a YoY decline of 23.8%, resulting in a loss of Rs. 5.2 crore, as compared to a profit after tax of Rs. 1.5 crore for corresponding previous period.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We had strong revenue growth in Q2 and we were profitable in this quarter. We continue to see good order inflow, resulting in an improvement in our order book to Rs. 599 crore, as on September 30, 2020. Our international revenues showed robust YoY growth of 64.2% during the first six months, led by growth in Africa and South-East Asia. 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 globally, which is driving the demand for our equipment.”
Mr. Venkatesh Gadiyar, CFO said, “We generated cash of Rs. 45 crore from operations during this quarter and our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, improved to Rs. 299 crore as on September 30, 2020. We also improved our working capital, despite payment delays from some Government customers, and we continue to be a debt-free Company. We expect to see further improvement in our financial performance during the second half of the year.”
As on date, we have filed for 349 patents and during the quarter, we were granted 2 patents bringing our cumulative grant to 118 patents.
For Q2 2021, consolidated net revenue was Rs. 106.8 crore, which was a YoY increase of 25.5%, resulting in a profit after tax of Rs. 4.5 crore, as compared to a loss of Rs. 4.4 crore for corresponding previous period.
For the half year ended September 30, 2020, net revenue was Rs. 184.2 crore, which was a YoY decline of 23.8%, resulting in a loss of Rs. 5.2 crore, as compared to a profit after tax of Rs. 1.5 crore for corresponding previous period.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We had strong revenue growth in Q2 and we were profitable in this quarter. We continue to see good order inflow, resulting in an improvement in our order book to Rs. 599 crore, as on September 30, 2020. Our international revenues showed robust YoY growth of 64.2% during the first six months, led by growth in Africa and South-East Asia. 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 globally, which is driving the demand for our equipment.”
Mr. Venkatesh Gadiyar, CFO said, “We generated cash of Rs. 45 crore from operations during this quarter and our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, improved to Rs. 299 crore as on September 30, 2020. We also improved our working capital, despite payment delays from some Government customers, and we continue to be a debt-free Company. We expect to see further improvement in our financial performance during the second half of the year.”
As on date, we have filed for 349 patents and during the quarter, we were granted 2 patents bringing our cumulative grant to 118 patents.
Tejas Networks [BSE: 540595, NSE: TEJASNET] announced that it has received purchase order of Rs. 32 crores from Sterlite Technologies (STL) [NSE: STRTECH] and L&T Construction for its GPON (Gigabit Passive Optical Network) fiber-to-the-home (FTTH) equipment for a state-led BharatNet project in south India.
Tejas Networks will supply its state-of-the-art GPON OLT and ONT products for this project, which is being funded as a part of BharatNet, the world’s largest rural broadband project that aims to deliver high-speed Internet connectivity over optical fiber to all the villages in India. Tejas Networks is already the leading supplier of GPON OLT/ONT products for BharatNet Phase-1 project and has been honoured by Government of India as one of the best performing equipment suppliers for BharatNet Phase-1.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are excited to partner with Sterlite Technologies and L&T Construction on this important government project to eliminate the digital divide between urban and rural population. Our GPON and NG-PON products are clearly emerging as globally competitive on all aspects and are being deployed by Tier-1 service providers both in India and around the world. At Tejas, we are fully committed to do our part in fulfilling honourable Prime Minister of India’s dream of an “Atmanirbhar Bharat” in telecom equipment and to help connect every village in the country on BharatNet in the next 1000 days.”
Tejas Networks will supply its state-of-the-art GPON OLT and ONT products for this project, which is being funded as a part of BharatNet, the world’s largest rural broadband project that aims to deliver high-speed Internet connectivity over optical fiber to all the villages in India. Tejas Networks is already the leading supplier of GPON OLT/ONT products for BharatNet Phase-1 project and has been honoured by Government of India as one of the best performing equipment suppliers for BharatNet Phase-1.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are excited to partner with Sterlite Technologies and L&T Construction on this important government project to eliminate the digital divide between urban and rural population. Our GPON and NG-PON products are clearly emerging as globally competitive on all aspects and are being deployed by Tier-1 service providers both in India and around the world. At Tejas, we are fully committed to do our part in fulfilling honourable Prime Minister of India’s dream of an “Atmanirbhar Bharat” in telecom equipment and to help connect every village in the country on BharatNet in the next 1000 days.”
Tejas Networks [BSE: 540595, NSE: TEJASNET] announced that it has received a purchase order of Rs. 66 crores from L&T Construction, to supply its GPON based fiber-broadband products and high-performance Metro Ethernet switches for a prestigious Indian defence network project. The order was received during last quarter and the first set of supplies have started this quarter.
Larsen & Toubro (L&T) Construction is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 21 billion in revenue and operating in 30+ countries.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are honoured to be selected as a communications equipment supplier for this prestigious Indian defence project. It is a matter of great pride that our designed and made in India GPON OLT/ONT products and Metro Ethernet switches will be deployed in this strategic network. This win reinforces our technology strengths and credibility as a trusted provider of defence communication equipment to tri-services, since we have earlier supplied our DWDM and Layer-3 Multi-Gigabit Ethernet switches for the Indian Navy network and our Layer-2 Gigabit Ethernet switches for the Indian Air Force network. With over 10,000 nodes installed in various defence networks across India, we have demonstrated that we are making great progress towards realizing the vision of “Atmanirbhar Bharat” for secured communication infrastructure”.
Larsen & Toubro (L&T) Construction is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 21 billion in revenue and operating in 30+ countries.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are honoured to be selected as a communications equipment supplier for this prestigious Indian defence project. It is a matter of great pride that our designed and made in India GPON OLT/ONT products and Metro Ethernet switches will be deployed in this strategic network. This win reinforces our technology strengths and credibility as a trusted provider of defence communication equipment to tri-services, since we have earlier supplied our DWDM and Layer-3 Multi-Gigabit Ethernet switches for the Indian Navy network and our Layer-2 Gigabit Ethernet switches for the Indian Air Force network. With over 10,000 nodes installed in various defence networks across India, we have demonstrated that we are making great progress towards realizing the vision of “Atmanirbhar Bharat” for secured communication infrastructure”.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the first quarter ended June 30, 2020. Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build high-speed communication networks.
For Q1 2021, our consolidated revenues (net of pass-through component sale) were Rs. 77.4 crore which was a YoY 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 previous period.
Mr. Sanjay Nayak, Managing Director and CEO of 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 strong new order intake of Rs. 188 crore, taking our total order book to Rs. 593 crores, 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 up due to Government of India’s focus to create “Atmanirbhar Bharat”.
Export revenues showed robust YoY growth of 52% during the quarter. In addition, we 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 Company’s products.
“Our strong 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 Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks.
Mr. Venkatesh Gadiyar, CFO 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 economic impact of COVID-19 remains, financially we are well positioned to invest in growth opportunities in front of us.”
As on date, we have filed for 349 patents and have been granted 116 patents.
For Q1 2021, our consolidated revenues (net of pass-through component sale) were Rs. 77.4 crore which was a YoY 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 previous period.
Mr. Sanjay Nayak, Managing Director and CEO of 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 strong new order intake of Rs. 188 crore, taking our total order book to Rs. 593 crores, 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 up due to Government of India’s focus to create “Atmanirbhar Bharat”.
Export revenues showed robust YoY growth of 52% during the quarter. In addition, we 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 Company’s products.
“Our strong 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 Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks.
Mr. Venkatesh Gadiyar, CFO 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 economic impact of COVID-19 remains, financially we are well positioned to invest in growth opportunities in front of us.”
As on date, we have filed for 349 patents and have been granted 116 patents.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the fourth quarter ended March 31, 2020. Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build high-speed communication networks over optical fiber.
For Q4, 2020, consolidated revenues (net of pass-through component sale) were Rs. 52.7 crore which was a YoY decline of 80.2%. Decline in revenues resulted in a loss before tax and before impairment of intangible assets of Rs. 56.7 crore, as compared to a profit of Rs. 37.1 crore for corresponding previous period, since a majority of costs other than cost of material, are linked to manpower and are fixed in nature. The weak revenue during Q4 was primarily because of operational challenges and inability to ship confirmed customer orders because of lockdown due to Covid-19 and pushout of new customer orders, which were otherwise expected. The company also reassessed the marketability of its intangible assets under development as well as capitalized intangible assets, and has taken a one-time impairment charge of Rs. 69.87 crore towards the accumulated costs relating to past R&D.
For the year ended March 31, 2020, revenues (net of pass-through component sale) were Rs. 379.8 crore, which was a YoY decline of 56.7%. As a result, for the year, loss before tax and before impairment of intangibles was Rs. 68.7 crore (Loss of Rs. 138.6 crore, post one-time R&D impairment charge), against a profit before tax of Rs. 150.0 crore for the corresponding period. Revenues from customers in India (which was 79% of total revenues in FY19) declined by 63% YoY and in particular, revenues from the India Government segment declined by 88% YoY.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “Indian telecom sector is undergoing major financial stress, resulting in capex reduction by all private operators. In addition, Government spending on telecom projects declined sharply during FY20, resulting in a major revenue decline for us. We have put a lot of focus to reduce our dependence on India, and our medium term goal is to get 50% of our revenues from international customers. We made significant progress during FY20 in terms of securing new international customer wins and increasing our sales investments, but we could not see the positive impact in Q4, due to pushout of orders because of COVID-19.
In the short-term, due to ever-changing COVID-19 situation, it is likely that we will have fluctuations in the Company’s operations. There may be delays in customer orders and with various logistics and governmental restrictions, even the execution of orders in hand could be impacted. From a macro industry outlook, with more people working remotely and many services being accessed from homes, there has been a significant increase in data traffic in telecom networks, which will drive a demand for higher bandwidth and more optical and data transmission equipment. Our customers are expected to increase their investments to address fiber-to-the-home broadband requirements and to augment the capacity of their optical networks.”
Mr. Venkatesh Gadiyar, CFO said, “As of March 31, 2020, we are a debt free Company and our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, stood at Rs. 280 crore. Our receivables are at Rs. 456 crore, of which a majority is expected to be collected in FY21 and we also have inventory of Rs. 252 crore, a large part of which is expected to be shipped to customers in FY21. During FY21, we expect to improve our cash position from our current levels, based on our collection plan, inventory usage and tight operations. We have done a detailed cash flow planning for the next 12 months and believe that we are well covered to meet all our business growth requirement. Since the Company has made a loss, as per our policy, the Board has decided not to recommend any dividend this year.”
As on date, we have filed for 349 patents and during the quarter, we were granted 3 patent bringing our cumulative grant to 116 patents.
For Q4, 2020, consolidated revenues (net of pass-through component sale) were Rs. 52.7 crore which was a YoY decline of 80.2%. Decline in revenues resulted in a loss before tax and before impairment of intangible assets of Rs. 56.7 crore, as compared to a profit of Rs. 37.1 crore for corresponding previous period, since a majority of costs other than cost of material, are linked to manpower and are fixed in nature. The weak revenue during Q4 was primarily because of operational challenges and inability to ship confirmed customer orders because of lockdown due to Covid-19 and pushout of new customer orders, which were otherwise expected. The company also reassessed the marketability of its intangible assets under development as well as capitalized intangible assets, and has taken a one-time impairment charge of Rs. 69.87 crore towards the accumulated costs relating to past R&D.
For the year ended March 31, 2020, revenues (net of pass-through component sale) were Rs. 379.8 crore, which was a YoY decline of 56.7%. As a result, for the year, loss before tax and before impairment of intangibles was Rs. 68.7 crore (Loss of Rs. 138.6 crore, post one-time R&D impairment charge), against a profit before tax of Rs. 150.0 crore for the corresponding period. Revenues from customers in India (which was 79% of total revenues in FY19) declined by 63% YoY and in particular, revenues from the India Government segment declined by 88% YoY.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “Indian telecom sector is undergoing major financial stress, resulting in capex reduction by all private operators. In addition, Government spending on telecom projects declined sharply during FY20, resulting in a major revenue decline for us. We have put a lot of focus to reduce our dependence on India, and our medium term goal is to get 50% of our revenues from international customers. We made significant progress during FY20 in terms of securing new international customer wins and increasing our sales investments, but we could not see the positive impact in Q4, due to pushout of orders because of COVID-19.
In the short-term, due to ever-changing COVID-19 situation, it is likely that we will have fluctuations in the Company’s operations. There may be delays in customer orders and with various logistics and governmental restrictions, even the execution of orders in hand could be impacted. From a macro industry outlook, with more people working remotely and many services being accessed from homes, there has been a significant increase in data traffic in telecom networks, which will drive a demand for higher bandwidth and more optical and data transmission equipment. Our customers are expected to increase their investments to address fiber-to-the-home broadband requirements and to augment the capacity of their optical networks.”
Mr. Venkatesh Gadiyar, CFO said, “As of March 31, 2020, we are a debt free Company and our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, stood at Rs. 280 crore. Our receivables are at Rs. 456 crore, of which a majority is expected to be collected in FY21 and we also have inventory of Rs. 252 crore, a large part of which is expected to be shipped to customers in FY21. During FY21, we expect to improve our cash position from our current levels, based on our collection plan, inventory usage and tight operations. We have done a detailed cash flow planning for the next 12 months and believe that we are well covered to meet all our business growth requirement. Since the Company has made a loss, as per our policy, the Board has decided not to recommend any dividend this year.”
As on date, we have filed for 349 patents and during the quarter, we were granted 3 patent bringing our cumulative grant to 116 patents.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that it has stepped forward to support Government of Karnataka’s ongoing relief efforts to tackle and contain the damage being caused by the novel Coronavirus outbreak. The company donated Rs 11 Lacs to the Karnataka Chief Minister’s Relief Fund (CMRF) and Rs 40 Lacs to support Akshaya Patra Foundation Bangalore, that runs the world’s largest mid-day meal programme and is now providing food and ration as a part of our country’s COVID-19 relief efforts.
Sanjay Nayak, CEO & Managing Director of Tejas Networks said, “Our country is grappling with the biggest humanitarian crisis of our times. We appreciate and support the outstanding work being done by our Government and other agencies in tackling this unprecedented situation. As a responsible organization, we are making our humble contribution for these disaster relief efforts.
Tejas Networks has supplied telecom equipment to all the major communication service providers, mission-critical government and defence networks. At this critical juncture, when the need for digital connectivity is critical, we are ensuring that we provide timely support to our customers so that businesses, government offices, hospitals, homes and other essential services stay connected”.
Sanjay Nayak, CEO & Managing Director of Tejas Networks said, “Our country is grappling with the biggest humanitarian crisis of our times. We appreciate and support the outstanding work being done by our Government and other agencies in tackling this unprecedented situation. As a responsible organization, we are making our humble contribution for these disaster relief efforts.
Tejas Networks has supplied telecom equipment to all the major communication service providers, mission-critical government and defence networks. At this critical juncture, when the need for digital connectivity is critical, we are ensuring that we provide timely support to our customers so that businesses, government offices, hospitals, homes and other essential services stay connected”.
