Tejas Networks announces consolidated results for quarter ended June 30, 2020. Q1 revenue was Rs. 77.4 crore; Net loss was Rs. 9.8 crore
Bengaluru, June 27, 2020: 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.
About Tejas Networks Limited
Tejas Networks designs, develops and sells high-performance and cost-competitive networking products to telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries. Tejas products utilize programmable, software-defined hardware architecture with a common software code-base that delivers seamless upgrades of new features and technology standards. Tejas Networks is ranked among top-10 suppliers in the global optical aggregation segment and has filed 349 patents.
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Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements due to risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to successfully implement our strategy and our growth and expansion plans, technological changes, our exposure to market risks, general economic and political conditions in India which have an impact on our business activities or investments, changes in the laws and regulations that apply to the industry in which the Company operates. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company.