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Tejas Networks Limited shares rose by 20% on April 23, reaching a 52-week high of Rs 1,088.25 on the NSE. This was after the company released its earnings report for the fourth quarter ended March 2024, which showed robust earnings.
Tejas Networks’ consolidated net profit for the quarter was Rs 146.78, compared to a loss of Rs 11.47 crore during the same period the previous year. This was due to BSNL’s 4G project execution, which led to growth in all product segments, particularly the wireless business.
The company was able to benefit from the government’s push for local manufacturing, the PLI scheme, and large spending on BSNL, BharatNet, and railways. References from TCom and TCS also helped the company add new clients.
Tejas Networks’ inventory increased to Rs 3,738 crore in the quarter from Rs 2,683 crore in the previous year. The company said it secured “key long-lead components for expediting delivery of several critical large orders – primarily BSNL 4G RAN”.
According to Mr. Anand Athreya, Managing Director and CEO of Tejas Networks, Q4-FY24 has been a significant quarter for the company. They achieved strong revenue growth, which is reflected in their profitability, in line with the significant investments that the company has made during FY24.
They were able to ramp up BSNL’s 4G/5G RAN shipments and complete the delivery of the large volume of IP/MPLS routers for the backhaul network.
During Q4FY24, the company was granted an additional 22 patents, bringing the total patent count to 335.
Mr. Sumit Dhingra, CFO, said that the consolidated revenue for Q4-FY24 and FY24 were significantly higher than the corresponding numbers in FY23. During FY24, they made major investments to ramp up the R&D team and operations, which were essential to deliver the company’s growth potential.
They finished FY24 with a net profit of Rs. 63 crore and a strong order book of Rs. 8,221 crore.
| Particulars | Q4-FY24 (Rs in crores) | Q4-FY23 (Rs in crores) | FY24 (Rs in crores) | FY23 (Rs in crores) |
| Net Revenue | 1,326.9 | 299.3 | 2,470.9 | 921.5 |
| PBT | 232.6 | (27.0) | 100.2 | (42.7) |
| PAT | 146.8 | (11.5) | 63.0 | (36.4) |
Tejas Networks designs, develops, manufactures and sells high-performance telecom and networking products, which are used to build high-speed communication networks. They serve over 75 countries in telecommunications, internet, utility, defense, and government entities.
At 11:48 am, the shares of Tejas Networks were trading in an upper circuit 20% higher at Rs 1,088.25 on NSE.
