Loss to profit: Tejas Networks Q1 net jumps to Rs 20 cr on domestic sales

Consolidated revenues up 54% to Rs 224 cr; firm has posted Rs 1.75 cr loss in the year-ago quarter

Tejas Networks posted a sharp growth in net profit to nearly Rs 20 crore during the April-June quarter on the back of strong demand in the domestic market. 
 

The Bengaluru-based optical networking product maker reported a net loss of Rs 1.75 crore during the year-ago period. 
 

Tejas Networks saw 54 per cent growth in consolidated revenues during the first quarter to Rs 224 crore, as against Rs 145 crore. 
 

“With an exponential increase in data traffic in mobile as well as fixed-line broadband networks, we are witnessing a strong demand for our optical transmission equipment. During the quarter, we saw strong revenue growth especially from our Indian customers,” said Sanjay Nayak, chief executive officer and managing director, Tejas Networks. 
 

During the quarter, the company said, it supplied “a large portion” of gigabit passive optical networks (GPON) products for India’s flagship Bharatnet project to provide broadband to villages. 
 

Nayak is bullish about the data consumption growth in India. “It took us 10 years to really build a good voice network across the country. Last one and half years, data has grown. We will see a five-year data growth with 4G, 5G and IoT,” said Nayak, adding “whatever is happening in India is also happening in Southeast Asian networks, Africa. Governments are invested in broadband. This trend is reflected in emerging markets”. 
 

Tejas Networks completed Initial Public Offer (IPO) of shares and raised Rs 450 crore by issuance of 17,509,727 shares to retail and institutional shareholders.