Tejas Networks gains after turnaround Q3 performance

Tejas Networks rose 3.68% to Rs 142.25 after the company reported a consolidated net profit of Rs 9.23 crore in Q3 FY21 as against a net loss of Rs 112.06 crore in Q3 FY20.

Net sales jumped 55.6% year-on-year (YoY) to Rs 134.88 crore during the quarter. The company posted a pre-tax loss of Rs 9.23 crore in Q3 December 2020 as compared to a pre-tax loss of Rs 14.78 crore in Q3 December 2019.

Sanjay Nayal, managing director and CEO of Tejas Networks, said, "We continued to build on our momentum of revenue as well as profitability growth during 03. We also had strong order inflows and new customer wins, resulting in order book of Rs 672 crore, as on 31 December 2020. Our international business for the first nine months saw a YoY revenue growth of 269%, led by customers in Africa, Mid-east and South-East Asia. With increased demand for high-speed home broadband connections on optical fiber and the need for telecom operators to upgrade their backbone network capacity, we see a robust demand for our equipment globally."

ME Venkatesh Gadiyar, CFO said, "Our quarterly financial performance continues to improve, as we generated cash of Rs 55 crore from operations and also reduced our working capital by Rs 43 crore during 03. Our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, improved to Rs 335 crore as on 31 December 2020 and we continue to be a debt-free company."

Tejas Networks designs, develops and sells networking products to telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries. The company is ranked among top-10 suppliers in the global optical aggregation segment and has filed 349 patents.

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