Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the second quarter ended September 30, 2017.
Tejas Networks designs, develops, manufactures and sells high-performance and costcompetitive optical and data networking products, which are used to build high-speed communication networks over optical fiber.
For the quarter ended September 30, 2017, our consolidated revenues (net of taxes and pass-through component sale to our contract manufacturers) were Rs. 214.90 crore which was a growth of 20.9% year-on-year. Our operating profits grew by 61.2% year-on-year and net profit grew 68.0% year-on-year. As a percentage of consolidated revenues (net of taxes and pass-through component sale to our contract manufacturers) our operating margin was 13.6% in Q2’18 compared to 10.2% in Q2’17 and our net profit after tax in Q2’18 was 12.5% as compared to net profit of 9.0% in Q2’17.
For the six month period ended September 30, 2017, our revenues (net of taxes and passthrough component sales to our contract manufacturers) were Rs. 415.01 crore which was a growth of 33.5% year-on-year, our operating profits grew by 120.2% year-on-year and our net profit grew 232.5% year-on-year.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We continue to see strong growth led by India, which is the world’s fastest growing optical networking market. We believe that India is at the cusp of a prolonged growth cycle in optical networking, driven by strong usage of mobile data as well as broadband by consumers, businesses and government”.
Tejas continued to strengthen its market position in India. Recently, Ovum (Informa), a global market-leading data, research and consulting firm, ranked Tejas as #1 in marketshare for India’s Optical Aggregation market for the last 4 quarters rolling.
Mr. Venkatesh Gadiyar, CFO said, “We continue to see the benefits of operating leverage, which is reflected in our strong profitability growth on a year-on-year basis. For the first half of the year, our net profit after tax was Rs. 47.31 crore and we generated cash of Rs. 94.72 crore from operations. As of September 30, 2017, our cash and cash equivalents amounted to Rs.381.52 crore. We are now practically a debt-free company, with a outstanding debt of just Rs. 3.37 crore as of September 30, 2017.”
Recently we have strengthened our management team and Mr. N R Ravikrishnan has joined us on October 11, 2017 as General Counsel and Chief Compliance officer. Earlier, he worked as the Company Secretary and Head (Compliance, Audit and Facilities) in Infosys Group.
Tejas Networks designs, develops, manufactures and sells high-performance and costcompetitive optical and data networking products, which are used to build high-speed communication networks over optical fiber.
For the quarter ended September 30, 2017, our consolidated revenues (net of taxes and pass-through component sale to our contract manufacturers) were Rs. 214.90 crore which was a growth of 20.9% year-on-year. Our operating profits grew by 61.2% year-on-year and net profit grew 68.0% year-on-year. As a percentage of consolidated revenues (net of taxes and pass-through component sale to our contract manufacturers) our operating margin was 13.6% in Q2’18 compared to 10.2% in Q2’17 and our net profit after tax in Q2’18 was 12.5% as compared to net profit of 9.0% in Q2’17.
For the six month period ended September 30, 2017, our revenues (net of taxes and passthrough component sales to our contract manufacturers) were Rs. 415.01 crore which was a growth of 33.5% year-on-year, our operating profits grew by 120.2% year-on-year and our net profit grew 232.5% year-on-year.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We continue to see strong growth led by India, which is the world’s fastest growing optical networking market. We believe that India is at the cusp of a prolonged growth cycle in optical networking, driven by strong usage of mobile data as well as broadband by consumers, businesses and government”.
Tejas continued to strengthen its market position in India. Recently, Ovum (Informa), a global market-leading data, research and consulting firm, ranked Tejas as #1 in marketshare for India’s Optical Aggregation market for the last 4 quarters rolling.
Mr. Venkatesh Gadiyar, CFO said, “We continue to see the benefits of operating leverage, which is reflected in our strong profitability growth on a year-on-year basis. For the first half of the year, our net profit after tax was Rs. 47.31 crore and we generated cash of Rs. 94.72 crore from operations. As of September 30, 2017, our cash and cash equivalents amounted to Rs.381.52 crore. We are now practically a debt-free company, with a outstanding debt of just Rs. 3.37 crore as of September 30, 2017.”
Recently we have strengthened our management team and Mr. N R Ravikrishnan has joined us on October 11, 2017 as General Counsel and Chief Compliance officer. Earlier, he worked as the Company Secretary and Head (Compliance, Audit and Facilities) in Infosys Group.
Tejas Networks (NSE: TEJASNET l BSE: 540595) today announced that Ovum (Informa), a market-leading data, research and consulting firm focused on heiping digital service providers and their technology partners thrive in a connected digital economy, has ranked Tejas as the market leader in India’s optical aggregation segment in Q2, 2017 on a rolling four quarter basis.
“Tejas Networks has held the #1 position in India’s Optical Aggregation market with a market share of 36%. As of Q2, 2017, Tejas Networks has maintained its leadership position in the India optical market, which was the fastest-growing Optical Networking market in the world, with a strong sequential as well as year-on-year growth. Ovum’s Optical Networking market includes three product segments – Aggregation, WDM and Subsea Optoelectronics,” said Don Frey, Principal Analyst, Transport and Routing at Ovum Telecoms Research.
“We are delighted that Tejas Networks is ranked as the #1 vendor in the optical aggregation segment in India – the world’s fastest-growing and most-competitive telecom market” said Sanjay Nayak, CEO and MD of Tejas Networks. “We believe that India is at the cusp of a prolonged growth cycle in optical networking, driven by strong usage of mobile data as well as broadband by consumers and businesses. While there is decent fiber capacity in inter-city networks, there is a significant catch-up investment needed in the aggregation and metro segment, since less than 20% of cell towers are currently fiberized. With our strong incumbency , long-standing customer relationships and government’s support for Make-in-India, we are well positioned to benefit from this increased demand for optical networking equipment in India,” he added.
“Tejas Networks has held the #1 position in India’s Optical Aggregation market with a market share of 36%. As of Q2, 2017, Tejas Networks has maintained its leadership position in the India optical market, which was the fastest-growing Optical Networking market in the world, with a strong sequential as well as year-on-year growth. Ovum’s Optical Networking market includes three product segments – Aggregation, WDM and Subsea Optoelectronics,” said Don Frey, Principal Analyst, Transport and Routing at Ovum Telecoms Research.
“We are delighted that Tejas Networks is ranked as the #1 vendor in the optical aggregation segment in India – the world’s fastest-growing and most-competitive telecom market” said Sanjay Nayak, CEO and MD of Tejas Networks. “We believe that India is at the cusp of a prolonged growth cycle in optical networking, driven by strong usage of mobile data as well as broadband by consumers and businesses. While there is decent fiber capacity in inter-city networks, there is a significant catch-up investment needed in the aggregation and metro segment, since less than 20% of cell towers are currently fiberized. With our strong incumbency , long-standing customer relationships and government’s support for Make-in-India, we are well positioned to benefit from this increased demand for optical networking equipment in India,” he added.
Tejas Networks Limited announced today that it has won the National Intellectual Property (IP) Award for the year 2017 in the category “Top Indian Private Company (MSME) for Patents and Commercialization”. This prestigious award was presented by Hon’ble Smt. Nirmala Sitharaman, Minister of Commerce and Industry, Government of India at a function organized in New Delhi on the occasion of World IP Day.
The National IP awards are conferred every year by the Indian Intellectual Property Office to outstanding innovators, organisations and companies in the fields of patents, designs, trademarks and geographical indications. The awardees are selected by an eminent jury comprising R&D & IP professionals, industry associations, academia, and government representatives. The growth in IPR portfolio over preceding years, utilization of IPRs as a strategic tool in commerce & industry, along with their contribution to the society at large are taken into consideration while selecting the winners.
“We are honoured to be recognized as top Indian private company for patents and commercialization by the Government of India,” said Sanjay Nayak, CEO and MD of Tejas Networks. “Over the years, we have consistently invested in R&D and innovation and built up a rich portfolio of technology patents and intellectual properties, which are a part of our future-ready products. This prestigious award underscores our commitment to be an innovation leader and provide world-class products to our customers in the telecommunications sector,” he added.
Tejas Networks has filed 326 patent applications in India, United States and Europe in the area of optical and wireless communications. In addition, Tejas has also filed 35 patent applications under the Patent Cooperation Treaty.
The National IP awards are conferred every year by the Indian Intellectual Property Office to outstanding innovators, organisations and companies in the fields of patents, designs, trademarks and geographical indications. The awardees are selected by an eminent jury comprising R&D & IP professionals, industry associations, academia, and government representatives. The growth in IPR portfolio over preceding years, utilization of IPRs as a strategic tool in commerce & industry, along with their contribution to the society at large are taken into consideration while selecting the winners.
“We are honoured to be recognized as top Indian private company for patents and commercialization by the Government of India,” said Sanjay Nayak, CEO and MD of Tejas Networks. “Over the years, we have consistently invested in R&D and innovation and built up a rich portfolio of technology patents and intellectual properties, which are a part of our future-ready products. This prestigious award underscores our commitment to be an innovation leader and provide world-class products to our customers in the telecommunications sector,” he added.
Tejas Networks has filed 326 patent applications in India, United States and Europe in the area of optical and wireless communications. In addition, Tejas has also filed 35 patent applications under the Patent Cooperation Treaty.
Tejas Networks Limited, a leading global provider of next-generation optical and data networking products announced that Sukhvinder Kumar has joined as President-Global Manufacturing Operations and Joydeep Bose as Executive Vice President, Corporate Strategy.
“We are delighted to welcome Sukhvinder and Joydeep to Tejas. With these appointments, we have strengthened our senior management team with accomplished executives having rich international leadership experience”, said Sanjay Nayak CEO and MD. He added, “Their domain expertise and knowledge will play an important role during our next phase of market expansion and growth.”
Sukhvinder Kumar holds a bachelor of engineering degree in electronics from Dr. Ambedkar Marathawala University, Aurangabad and an advanced management program certificate from Indian Institute of Management, Bengaluru. He has several years of experience in the field of electronics. Prior to joining our Company, he was the chief executive officer and managing director of Eolane Electronics India Private Limited. Sukhvinder said- “with best-in-class products, deep R&D expertise, strong in-house IPR portfolio and TL9000 certified manufacturing processes, Tejas has emerged as India’s leading high-technology product company. I am excited to be part of a top-notch team, as we embark on an exciting growth phase.”
Joydeep Bose joined Tejas from Cisco-Asia Pacific & Japan, where he headed strategy and corporate development for over 10 years. At Cisco, Joydeep focused on strategy and new partnerships, minority investments, co-development and M&A for its cloud, IOT and smart cities businesses. Before Cisco, Joydeep spent 7 years at Intel-India where he was actively involved with Intel Capital’s investments in telecom and wireless startups, before taking up a General Manager role in the emerging products division. Joydeep said- “with significant customer successes in India as well as internationally, Tejas is well positioned to capture much larger market-share globally. Tejas has a strong portfolio of software-differentiated, converged packet optical, packet transport, fiber broadband and Ethernet switches that give us a unique edge in defining the next-generation connected platforms. I look forward to creating growth opportunities and new initiatives through co-creation, structured partnerships, M&A and Tejas-led developer forums.”
“We are delighted to welcome Sukhvinder and Joydeep to Tejas. With these appointments, we have strengthened our senior management team with accomplished executives having rich international leadership experience”, said Sanjay Nayak CEO and MD. He added, “Their domain expertise and knowledge will play an important role during our next phase of market expansion and growth.”
Sukhvinder Kumar holds a bachelor of engineering degree in electronics from Dr. Ambedkar Marathawala University, Aurangabad and an advanced management program certificate from Indian Institute of Management, Bengaluru. He has several years of experience in the field of electronics. Prior to joining our Company, he was the chief executive officer and managing director of Eolane Electronics India Private Limited. Sukhvinder said- “with best-in-class products, deep R&D expertise, strong in-house IPR portfolio and TL9000 certified manufacturing processes, Tejas has emerged as India’s leading high-technology product company. I am excited to be part of a top-notch team, as we embark on an exciting growth phase.”
Joydeep Bose joined Tejas from Cisco-Asia Pacific & Japan, where he headed strategy and corporate development for over 10 years. At Cisco, Joydeep focused on strategy and new partnerships, minority investments, co-development and M&A for its cloud, IOT and smart cities businesses. Before Cisco, Joydeep spent 7 years at Intel-India where he was actively involved with Intel Capital’s investments in telecom and wireless startups, before taking up a General Manager role in the emerging products division. Joydeep said- “with significant customer successes in India as well as internationally, Tejas is well positioned to capture much larger market-share globally. Tejas has a strong portfolio of software-differentiated, converged packet optical, packet transport, fiber broadband and Ethernet switches that give us a unique edge in defining the next-generation connected platforms. I look forward to creating growth opportunities and new initiatives through co-creation, structured partnerships, M&A and Tejas-led developer forums.”
Tejas Networks Ltd, a leading supplier of optical networking equipment to telecom carriers worldwide is participating in the Indo-Africa ICT Expo 2016 in Nairobi, Kenya. This is an annual trade show organized by the Telecom Export Promotion Council (TEPC) and Nasscom, in cooperation with the ICT Authority of Kenya. This year’s event was inaugurated by Hon’ble Minister of State for Communications Government of India, Shri Manoj Sinha and Hon’ble ICT Minister (Cabinet Secretary, Kenya), Mr. Joe Mucheru and has attracted several telecom service providers, government officials as well as business visitors from the east African region.
“India is an ideal partner to provide telecom products and solutions to Africa. The challenging operating requirements that we have seen in India are very relevant for emerging countries in Africa, where there is a need for building cost-effective yet high-quality network infrastructure. We have seen lot of potential for increasing exports of telecom projects from India to Africa.” said Sanjay Nayak, CEO & MD of Tejas Networks and Vice Chairman, TEPC while giving the keynote address.
Tejas Networks has had a lot of success in Africa and thousands of Tejas equipment has been successfully deployed by over 50 telecom service providers across Africa. Tejas customers in Africa include leading Carrier-of-Carriers, Mobile Operators as well as ISPs. Some of the customers in Africa using Tejas products include WIOCC, SEACOM, MTN Business, Access Kenya, Wananchi, Simbanet, BCS, Internet Solutions, Neotel, Zantel and Smile Communications. Tejas is showcasing its latest range of PTN (Packet Transport Networks), DWDM and other optical networking products.“
“India is an ideal partner to provide telecom products and solutions to Africa. The challenging operating requirements that we have seen in India are very relevant for emerging countries in Africa, where there is a need for building cost-effective yet high-quality network infrastructure. We have seen lot of potential for increasing exports of telecom projects from India to Africa.” said Sanjay Nayak, CEO & MD of Tejas Networks and Vice Chairman, TEPC while giving the keynote address.
Tejas Networks has had a lot of success in Africa and thousands of Tejas equipment has been successfully deployed by over 50 telecom service providers across Africa. Tejas customers in Africa include leading Carrier-of-Carriers, Mobile Operators as well as ISPs. Some of the customers in Africa using Tejas products include WIOCC, SEACOM, MTN Business, Access Kenya, Wananchi, Simbanet, BCS, Internet Solutions, Neotel, Zantel and Smile Communications. Tejas is showcasing its latest range of PTN (Packet Transport Networks), DWDM and other optical networking products.“
Tejas Networks Limited, a leading global provider of next-generation optical and data networking products, announced the appointment of Ambassador Leela Ponappa and Shirish Saraf to its board of directors.
“We are honored to add two such extraordinary individuals to our board who have varied leadership experience and several outstanding achievements in their illustrious careers”, said Sanjay Nayak CEO and MD. He added, “We look forward to benefiting from their deep expertise, knowledge and valuable perspectives as we continue to nurture Tejas into a global industry leader.”
Ambassador Leela Krishnamurthy Ponappa
Amb. Leela K. Ponappa joins as an non-executive, independent director to our board of directors. She has obtained her bachelor of arts degree and master of arts degree from the University of Madras. She has been an officer of the Indian Foreign Service for several years. She has served as the ambassador of India to Thailand and Netherlands. She has also held the post of Deputy National Security Adviser and Secretary, National Security Council and Additional Secretary in the Ministry of External Affairs. She was also appointed as a permanent representative to the Organization for the Prohibition of Chemical Weapons.
Shirish Saraf
Shirish Saraf joins as a non-executive, additional director to our board of directors. He has obtained bachelor of science degree in economics from the London School of Economics and Political Science. He has several years of experience in heading private equity investment groups. He has been a director on various companies in different jurisdictions, including RAK Ceramics (PSC), RAK Logistics Holdings Pte Ltd and Dynamatic Technologies Limited. He is the founder and vice chairman of Samena Capital. He has also been the co-founder and managing director of Abraaj Capital. He currently holds the post of director in the Samena Foundation.
“We are honored to add two such extraordinary individuals to our board who have varied leadership experience and several outstanding achievements in their illustrious careers”, said Sanjay Nayak CEO and MD. He added, “We look forward to benefiting from their deep expertise, knowledge and valuable perspectives as we continue to nurture Tejas into a global industry leader.”
Ambassador Leela Krishnamurthy Ponappa
Amb. Leela K. Ponappa joins as an non-executive, independent director to our board of directors. She has obtained her bachelor of arts degree and master of arts degree from the University of Madras. She has been an officer of the Indian Foreign Service for several years. She has served as the ambassador of India to Thailand and Netherlands. She has also held the post of Deputy National Security Adviser and Secretary, National Security Council and Additional Secretary in the Ministry of External Affairs. She was also appointed as a permanent representative to the Organization for the Prohibition of Chemical Weapons.
Shirish Saraf
Shirish Saraf joins as a non-executive, additional director to our board of directors. He has obtained bachelor of science degree in economics from the London School of Economics and Political Science. He has several years of experience in heading private equity investment groups. He has been a director on various companies in different jurisdictions, including RAK Ceramics (PSC), RAK Logistics Holdings Pte Ltd and Dynamatic Technologies Limited. He is the founder and vice chairman of Samena Capital. He has also been the co-founder and managing director of Abraaj Capital. He currently holds the post of director in the Samena Foundation.
