Tejas Networks tumbles after reporting Q3 net loss of Rs 112.06 cr

Tejas Networks fell 6.32% to Rs 84.50 after the company reported a net loss of Rs 112.06 crore in Q3 December 2019 as against a net profit of Rs 32.84 crore in Q3 December 2018.

The company recorded pre-tax loss of Rs 14.78 crore in Q3 December 2019 compared with pre-tax profit of Rs 24.91 crore in Q3 December 2019.

In Q3 FY20, net sales declined 53% to Rs 86.66 crore on a year-on-year (YoY) basis. The weak revenue during the quarter was primarily due to sharp decline in revenues from India Government segment, which had a YoY decline of 86% for the nine months ended on 31 December 2019.

There was a reversal of deferred tax assets of Rs 97.94 crore during the quarter, resulting in an after tax loss of Rs 112.06 crore in Q3 December 2019.

Sanjay Nayak, managing director and CEO, said,"Indian telecom sector is undergoing major financial stress which has resulted in tight capex by all operators. Due to our significant dependence on India, which contributed to 79% of our total revenues last FY, we have seen an adverse impact on our financial performance during the current FY. As a part of our medium term goal of getting 50% of our revenues from international, we continue to focus on growing our international business and have made significant progress during the year in terms of new customer wins and increasing our sales investments in target geographies. We expect healthy YoY growth for our international business during the current FY. At a macro level, growth drivers of our business remain healthy with increased broadband penetration, cloudification and adoption of 5G."

Tejas Networks is a provider of carrier grade communications equipment and solutions for telecom industry. The firm is a supplier of optical networking equipment to telecom carriers across the world. Its equipment is used by various service providers to build broadband networks.

Powered by Capital Market - Live News