Tejas Networks records loss of Rs 49 crore in Q4 FY22

Tejas Networks reported a consolidated net loss of Rs 49.6 crore in Q4 FY22 as compared to a net profit of Rs 33.6 crore recorded in Q4 FY21.

Consolidated net revenue during the quarter was Rs 126.5 crore, down 37.2% YoY.

Total expenses increased by 26.7% to Rs 236.75 crore in Q4 FY22 over Q4 FY21. The company made an allowance Rs 68.49 crore for expected credit loss (ECL) in the fourth quarter. The ECL allowance amount was Rs 9.80 crore in the same period last year.

The company reported a pre-tax loss of Rs 95.9 crore in Q4 FY22 as against a pre-tax profit of Rs 18.5 crore in Q4 FY21.

For FY22, net revenue was Rs 550.6 crore, which was a YoY increase of 6.9%, resulting in a loss after tax of Rs. 62.7 crore, as compared to a profit of Rs. 37.5 crore for corresponding previous period.

Sanjay Nayak, managing director and CEO of Tejas Networks, said, We are disappointed that our Q4 revenues were below our expectations. This was due to the ongoing global chip supply shortages and despite our best efforts, we could not manufacture enough products to fulfil open orders.

However, we continue to see a positive business momentum with strong Q4 order inflow of Rs 316 crore, increasing our total order book to an all-time high of Rs 1,175 crore. We have already taken advance inventory actions for securing components for our planned revenues for next 12 months and we believe that we will be able to effectively address the challenges of the ongoing semiconductor component shortages.

We are also pleased that our 4G Radio Access Network (RAN) equipment, as a part of the indigenous 4G solution, has successfully passed the Proof-of-Concept field tests in the network of a large Indian telecom operator.

Venkatesh Gadiyar, CFO said, "During Q4, we saw margin pressure due to increase in component prices and lower international revenues. Our cash position continues to be healthy and as on 31 March 2022 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, were Rs 1,102 crore and we continue to be a debt-free company.

Tejas Networks said that Balakrishnan V, non-executive chairman of the board of the company, has decided to step down from his position and that the board has approved the appointment of N. Ganapathy Subramaniam as the non-executive chairman of the board with effect from 18 May 2022. N. Ganapathy Subramaniam is a nominee director of Panatone Finvest, a subsidiary of Tata Sons.

Tejas Networks designs, develops, manufactures and sells high-performance telecom and networking products, which are used to build high-speed communication networks. Panatone Finvest held 52.45% stake in the company as on 8 April 2022.

The scrip advanced 0.86% to end at Rs 505.50 on the BSE yesterday.

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