You are here » Home » Companies » Company Overview » Tejas Networks Ltd

Tejas Networks Ltd.

BSE: 540595 Sector: Telecom
NSE: TEJASNET ISIN Code: INE010J01012
BSE 00:00 | 20 May 439.70 8.55
(1.98%)
OPEN

440.00

HIGH

452.50

LOW

436.00

NSE 00:00 | 20 May 439.40
(%)
OPEN

442.00

HIGH

449.80

LOW

435.75

OPEN 440.00
PREVIOUS CLOSE 431.15
VOLUME 34657
52-Week high 578.45
52-Week low 163.15
P/E
Mkt Cap.(Rs cr) 6,659
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 440.00
CLOSE 431.15
VOLUME 34657
52-Week high 578.45
52-Week low 163.15
P/E
Mkt Cap.(Rs cr) 6,659
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tejas Networks Ltd. (TEJASNET) - Chairman Speech

Company chairman speech

Dear Shareholders

It goes without saying that these are extraordinary times. Just as our hearts go out toeveryone affected by Covid-19 we are grateful to all our first responders and medicalprofessionals who are risking their lives to keep us safe. We are also grateful to all ouremployees who continued to deliver on our commitments to all stakeholders despite thesechallenging times.

FY 2021 was a year of paradoxes for the telecommunications industry. While themacro-economic environment and government restrictions posed severe challenges to ouroperations the global movement towards digitisation with increased spending on networkcapacities by operators provided a strong tailwind to our business.

During the year it became clear that a robust telecommunications infrastructure is anessential service for delivering connectivity to people homes offices and governmentsand which keeps our lives going on in as normal a way as possible. While it was alwaysknown that digitisation and a highly connected world were the way forward COVID-19fast-forwarded this transformation and increased the demand for reliable high-bandwidthservices. To deliver these high-bandwidth services telecom and internet service providersneed to make capital investments in optical transmission and fiber broadband accessequipment which is the focus area of your company.

I am happy to report that during FY 2021 your company showed a solid turnaround infinancial performance with robust year-on-year growth in our revenues while we returned toprofitability. We improved our performance on almost all financial parameters whilecontinuing to be a zero-debt company.

As a deep-technology company we continued our investments in R&D and maintainedour focus on innovation to create globally competitive products. Since all our R&Dmanpower is located in India we get a significant competitive cost advantage as comparedto our global peers. Over the years we have built a globally competitive portfolio ofSoftware-Defined-Hardware products which are well-positioned for building high-capacityoptical backbone networks as well as high-speed broadband access networks. We have alsoinvested in creating wireless access products based on the latest LTE technology which isthe base for 4G and 5G radio networks. We have seen a positive uptake in demand for ourproducts and we believe that we are well-positioned to continue winning new customers andgaining market share in existing accounts.

Having created a strong portfolio of world-class products it has been our endeavor toincrease our market presence in other countries that are upgrading and expanding theirtelecom networks. Over the past few years we have increased our focus on internationalsales to tap the large global opportunity and to reduce our over-dependence on the Indianmarket by geographically diversifying our customer base. We are happy to report thatduring FY 2021 we significantly increased our international business both on absolutelevels as well as a percentage of our total revenues. Our sales investments and focus onAfrica South-East Asia and the Americas are expected to continually grow ourinternational business. What also helps is that many of the countries in emerging marketshave India-like needs and our success in India serves as a strong reference inwinning new customers in these markets.

With telecom networks becoming an integral part of our daily lives and increasedconnectivity of internet-of-things (IoT) there is heightened sensitivity aroundcyber-security globally and the need to build secured telecom networks. As a resultsourcing of trusted telecom equipment has now become a key geopolitical concern for manycountries. With our products being deployed in over 75 countries we have a greatopportunity to become a trusted and reliable global source for leading-edge yetcost-competitive telecom products.

As Indias leading telecom equipment company with a focus on design-ledmanufacturing we are fully capable of stepping up and becoming a leading source ofdesigned-and-made-in India products for the world.

India continues to be one of the largest telecom markets in the world and is our homemarket from which we get a majority of our revenues. While India has 13% of the worldstelecom subscribers and is one of the biggest consumers of mobile data in the world thecapex spend by Indian telecom operators is disproportionately low and is only 5% of theglobal equipment spend. With an increased demand for highly reliable high-speedhome/office fiber-broadband connectivity the impending 5G rollouts and the stabilisationof competitive intensity amongst telcos we expect a robust capex cycle in the years tocome. During FY 2021 our India business grew healthily across both government and privatesegments.. We are well established as one of the leading suppliers of optical networkingand broadband access equipment to private telcos as well as Government networks.

We are enthused by the Honourable Prime Minister of Indias call to build anAtmanirbhar Bharat (self-reliant India) in critical areas of technologies such astelecom which has long-term security as well as economic significance. We see a strongintent from the Government to promote products developed with Indian R&D and IPR andwhich are manufactured in India. We believe that supportive Government policies such asthe Product Linked Incentive (PLI) Scheme the mandate for all telecom service providers(both Government and private) to source only trusted telecom equipment and furtherstrengthening of Preference to Make in India (PMI) policy clearly signals that theGovernment wants to make India a global telecom equipment manufacturing hub especially inthe light of the new geopolitical situation.

To conclude we have the right product mix at competitive price points; great R&Dteam which continues to develop leading-edge technologies; highly favorable geopoliticalsituation where countries are seeking trusted telecom products; increased digital adoptiondriving increasing investments in network capacities and more importantly favorableIndian Government policies and intent. All these combined together set a great platformfor our future growth.

On behalf of the Board of Directors of Tejas Networks we thank the Government ofIndia the Government of Karnataka and all Government agencies Governments of variouscountries where we have business operations and we look forward to their continuedsupport. We are grateful to our customers employees shareholders suppliers andbankers all of whom have supported us during these challenging times.

I wish you all good health and inner strength to tide over these testing times.

.