Tejas Networks has rallied 11% to Rs 472 on BSE after the company said that it has successfully completed GPON equipment installations in over 40,000 gram panchayats in India as part of the BharatNet Phase-1 project. BharatNet is an ambitious Government of India project to bring high-speed broadband connectivity to 250,000 gram panchayats of the country. 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 65 countries. The stock trading at its highest level since listing on June 27, 2017, appreciated 84% against issue price of Rs 257 per share. Since October 24, 2017, post July-September (Q2FY18) results, the stock outperformed the market by surging 54% as compared to 5.5% rise in the S&P BSE Sensex. The company had reported 68% year on year (YoY) growth in consolidated net profit at Rs 270 million in Q2FY18, despite 3% YoY decline in operational revenue at Rs 2,160 million.
EBITDA (earnings before interest, taxes, depreciation and amortization) margins improved to 21.3% in Q2FY18 from 13.8% in Q2FY17. At 11:37 AM; the stock was trading 8% higher at Rs 460 against 0.27% rise in the benchmark index. A combined 671,387 shares changed hands on the counter on BSE and NSE so far.