Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that it has received a purchase order of Rs. 111 Cr for Indian Navy’s country wide next-generation digital communications network from Sterlite Technologies Ltd [BSE: 532374, NSE: STRTECH], a global data network solutions company. As a part of this order, Tejas Networks will supply its state-of-the-art terabit capacity DWDM systems and high-performance Layer-3 Multi Gigabit Ethernet switches, for this pan-India network.

The Indian Navy’s communication network is being built as a robust, highly secure, scalable and reliable digital highway for naval operations that will link multiple Indian naval offices and India-administered islands. As the master systems integrator, Sterlite Technologies has been awarded a long-term contract for design, execution, operations and maintenance of Indian Navy’s Digital Network.

Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are delighted to be a part of this prestigious communication project for the Indian Navy as a technology partner for Sterlite Technologies for DWDM and Layer-3 Multi Gigabit Ethernet switches. It is a matter of great pride that our designed-and-made-in-India DWDM products and Layer-3 Multi Gigabit Ethernet switches will be deployed in Navy’s network, which has long-term strategic significance for India. The order reinforces our technological and execution capabilities for building large and complex communication networks.”

Mr. K.S Rao, CEO – Telecom Services Business, Sterlite Technologies further added, “Tejas Networks is a leading Indian OEM that designs and manufactures world-class optical and data networking products. They have demonstrated capabilities in executing complex, carrier-grade and mission-critical networks. We are happy to work with Tejas Networks to execute this project of national importance.”

Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that ICOSNET, one of Algeria’s leading Internet Service Providers (ISP), has chosen Tejas’ Converged Packet Optical (CPO) products to serve the growing demand for its high-speed Internet access and Virtual Private Network (VPN) offerings in the country. ICOSNET has deployed Tejas’ TJ1400 converged broadband access and optical aggregation platform at multiple Points of Presence (POP) within Algeria as well as in its international exchanges in London and Madrid.

Founded in 1999, ICOSNET is a full-service operator in Algeria holding ISP, Voice over IP (VoIP) and WiMax licenses with a large customer base that includes several Algerian companies and multinational groups established in Algeria. ICOSNET offers a comprehensive suite of telecommunications services to its blue-chip clientele that broadly covers connectivity, unified communications, data center hosting and related business solutions.

Mr. Ahmed Zerkouk, CTO at ICOSNET, said, “Over the past twelve months, we have been experiencing a dramatic rise in Internet and VPN traffic in our network that is driven by a faster adoption of higher-speed Fast Ethernet and Gigabit Ethernet connections by our enterprise customers. Tejas TJ1400 CPO is an innovative product that is designed to seamlessly scale to address our escalating capacity demands in a flexible and “pay-as-you-grow” manner. Moreover, as an MEF-certified CE2.0 compliant product, TJ1400 is purpose-built to carry SLA-driven premium and mission-critical enterprise data traffic with carrier-class availability and performance.”

“We are pleased to partner with ICOSNET as they enter into an exciting new phase of growth in their ISP business and expand their telecom offerings in Algeria beyond enterprise services into retail connectivity segment,” said Sanjay Nayak, CEO and MD of Tejas Networks. “Tejas TJ1400 is a unique platform that combines high-capacity PTN/OTN-based packet optical transmission with high-speed GPON-based fiber broadband in a dense and power-efficient chassis. TJ1400 is a best-in-class product that is ideally suited for service providers like ICOSNET that operate in high-growth telecom markets since it can deliver high-quality Internet access and business connectivity services in a scalable and cost-efficient manner,” he added.

Arnob Roy, President – Optical Products, Tejas Networks, said, “The demand for bandwidth from enterprises is growing by leaps and bounds due to growing adoption of cloud services and ongoing digital transformation. Tejas is emerging as a supplier of choice for new age service providers like ICOSNET due to our ability to leverage our unique software defined hardware™ that enables us to reduce time to market for new products, technologies and standards based on specific customer or market requirements.”

Yogesh Verma, Regional Director for Tejas Middle East, North Africa & West Africa, said, “We are thrilled to work with ICOSNET Broadband in their quest to provide better quality services to their customers. Broadband in Algeria is in the midst of a major transformation, and with this deployment ICOSNET will be able to grow its business by efficiently addressing their customers’ need for a higher capacity and faster broadband network.”

Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the first quarter ended June 30, 2018. Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build highspeed communication networks over optical fiber.

For the quarter ended June 30, 2018, our consolidated revenues (net of taxes and pass-through component sale) were ₹ 232.0 crore which was a year-on-year growth of 16.0% and sequential growth of 135.1%. Operating profit was at ₹ 45.3 crore which was 19.5% of our revenues (net) as against 14.1% for Q1 2018. Our profit after tax was ₹ 45.0 crore which was a year-on-year increase of 120.3%. Our PAT as percentage of net revenue increased from 10.2% in Q1 2018 to 19.4% in Q1 2019.

Mr. Sanjay Nayak, Managing Director and CEO of 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 our 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 our business, since our customers need to enhance their network infrastructure.

Mr. 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

During the quarter, we were granted 2 patents resulting in a cumulative grant of 78 patents. As on date, we have filed for 342 patents. We also won the “Best Exporter Award” from Federation of Karnataka Chambers of Commerce and Industry.

Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that Wheat State Telephone, a progressive rural carrier in the USA, has selected Tejas’ TJ1400 Packet Transport Networking (PTN) product to offer cutting-edge telecommunication services in south-central Kansas. Wheat State Telephone is a local telecommunications provider in Kansas and serves primarily residential customers while delivering services to select business customers.

Since 1950, Wheat State Telephone has been on the cutting-edge of telecommunications services. Wheat State service territory comprises two non-contiguous areas which poses a challenge in terms of offering quality services to their customers. However, Wheat State continues to deliver advanced network solutions including Fiber-to-the-Home (FTTH) services to their customers.

Randy Hoffman, General Manager at Wheat State said, “As a leading rural technologies provider in the state of Kansas, we seek to build networks that are reliable, scalable and cost-efficient. We selected Tejas Networks for their feature-rich packet transport products based on MPLS-TP technology that considerably simplified our network architecture and operations by minimizing routing overheads. Tejas’ MPLS-TP based approach offers a compelling alternative to rural broadband operators by delivering better performance and economics when compared to traditional router-driven models.”

“Tejas has a deep appreciation of the practical challenges faced by rural service providers, having implemented many rural fiber-based broadband networks across the world,” said Sanjay Nayak, CEO and MD at Tejas Networks. “Tejas’ TJ1400 is a unique converged product that combines MPLS-TP based packet transmission services with GPON based FTTx access on the same platform. This enables carriers to efficiently scale their networks while delivering next-generation residential and business services.”

Harmeet Singh, Senior Vice President – North America Sales at Tejas Networks, said, “We are honored to partner with Wheat State in rolling out a world-class packet optical network in rural Kansas. TJ1400 is a versatile product in the converged packet optical (CPO) space and we will actively support the Wheat State team to unleash the full benefits of this platform as they expand their network footprint and service offerings in the region.”

Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the fourth quarter and year ended March 31, 2018. 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 the year ended March 31, 2018, our consolidated revenues (net of taxes and pass-through component sale) were Rs. 739.9 crore which was a year-on-year decline of 9.6% and our profit before tax and exceptional item was Rs 106 crore which was a year-on-year increase of 26.0%. For Q4’18 our consolidated revenues (net of taxes and pass-through component sale) were Rs 98.7 crore, a decline of 61.2% and our net profit after tax of Rs 29.1 crore, a decline of 56.7% on a year-on-year basis.

Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “Revenue decline during the year is primarily due to late receipt of a few large orders. However, we ended the year with a healthy backlog of Rs 579 crore, which gives us the necessary momentum for a strong revenue growth in the coming year.”

The fundamental growth drivers of our business continue to be strong. Globally, the increased use of mobile data as well as broadband by consumers, businesses and governments, results in an increased demand for our optical transmission equipment. With expansion of 4G networks and advent of 5G and IOT in future, we expect this trend to continue for the next few years. During fiscal 2018, our India revenues were strong, particularly in the government sector. Our international business is going through a transition, where we saw a decline in revenues from our OEM customers, while we increased our focus on building our direct sales. Our continued investment in international direct sales is showing positive signs, as we see strong business momentum building up across customers in SE Asia, Africa and USA. India will continue to lead our growth with increased capex in fiber optic infrastructure by telecom operators and execution of government projects such as Bharatnet Phase 2. However, due to the nature of our business, our revenue on a quarter-onquarter basis will continue to be lumpy.

Mr. Venkatesh Gadiyar, CFO said, “We continue to see good progress in our working capital management which saw a reduction of Rs 133.1 crore for the year. Our cash and cash equivalents including investment in liquid mutual funds and deposits with financial institutions at the end of the year was Rs 512.7 crore. We announced a new capital allocation policy of paying upto 25% of our free cash flows as dividend (including dividend distribution tax) every year. We believe we have a strong balance sheet to support our future growth.”

During the year, we were granted 20 patents resulting in a cumulative grant of 76 patents. As on date, we have filed for 341 patents.