- ALSO READ
Shares of Tejas Networks moved higher by 9 per cent to Rs 539.55 on the BSE in Wednesday's trade amid heavy volumes on expectation of a strong revenue growth going forward.
The stock of the Tata Group's telecom equipment & accessories company traded close to its 52-week high level of Rs 578.45, touched on April 11, 2022. At 10:09 am, it quoted 8 per cent higher at Rs 535, as compared to 0.15 per cent decline in the S&P BSE Sensex. Trading volumes on the counter nearly doubled over its two-week average trading volumes. A combined 2.22 million equity shares had changed hands on the NSE and BSE till the time of writing of this report.
Tejas Networks is engaged in designing, developing and manufacturing products for building high-speed communication networks that carry voice, data and video traffic from fixed line, mobile and broadband networks.
For the April-June quarter (Q1FY23), Tejas Networks reported a loss before tax of Rs 12.9 crore as against a profit of Rs 8.3 crore in the year-ago quarter, due to decline in consolidated revenue by 12.8 per cent year on year (YoY) at Rs 125.8 crore. The company saw margin pressure due to industry-wide increase in component prices over last few quarters.
However, with strong order book of Rs 1,158 crore and advance inventory actions, the management expects to see better revenue performance in the coming quarters. "We continue to increase our R&D and manufacturing investments in 4G and 5G wireless products and are seeing a good pipeline of business building up," the management said.
In FY22, India-Private business contributed 47 per cent of the company's net revenues with a YoY growth of 14.9 per cent. The company is an incumbent supplier to all major telcos in India and expects to see an uptick in FY23 business, based on the company's wins in new applications areas such as FTTX, OTN/DWDM and PTN.
In FY22, Tejas Networks was selected by Airtel as a DWDM equipment supplier for their backhaul capacity upgrades as they prepare for 5G rollouts and as a GPON equipment supplier for their fiber broadband deployments.
"Post 5G spectrum auctions, we expect to see a multi-year capex spend cycle for building both wireline and wireless infrastructure. Besides deployments of next-generation radio products, 5G will also require significant increase in cell-site fiberization and augmentation of optical backbone capacities which augur well for our business," Tejas Networks said in its FY22 annual report.
Going forward, with the government's increasing thrust on the use of trusted products in both public and private networks, as well as design-led manufacturing, Tejas Networks believes that the company with world-class, indigenously designed products will have a great opportunity to play a key role in the 'Atmanirbhar Bharat' mission for telecom.
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
First Published: Wed, August 24 2022. 10:46 IST