Tejas Networks Ltd (BOM:540595) Q2 2025 Earnings Call Highlights: Record Revenue and Strategic ...

In This Article:

  • Revenue: INR2,655 crore for the quarter, 1.8x the previous quarter and 6.7x the year before.

  • Profit After Tax: INR275 crore.

  • EBITDA: INR459 crore.

  • Order Book: INR4,845 crore at the end of Q2.

  • Inventory: INR3,411 crore at the end of the quarter.

  • Receivables: INR3,758 crore, increased due to higher shipments.

  • Cash Collection: INR1,400 crore during the period.

  • Borrowings: INR2,768 crore.

  • Cash Position: INR583 crore.

  • India Private Revenue: 93% of total revenue, dominated by BSNL shipments.

  • India Government Revenue: 4% of total revenue, declined year-over-year by 5%.

  • International Revenue: 3% of total revenue, with key shipments to Africa and South Asia.

  • Closing Backlog: INR4,800 crore, with INR4,600 crore in India and INR200 crore internationally.

Release Date: October 18, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tejas Networks Ltd (BOM:540595) reported its highest-ever quarterly revenue of INR2,811 crore, with a profit after tax of INR275 crore.

  • The company has significantly ramped up its wireless business, shipping over 30,000 sites this quarter and more than 58,000 sites cumulatively to BSNL networks.

  • Tejas Networks Ltd (BOM:540595) has been selected for PTN and DWDM equipment by a Tier 1 telco in India for 4G and 5G network capacity expansion.

  • The company is seeing good traction in international markets, with new customer wins in the Americas and Africa, and has received initial orders for network modernization in the US.

  • Tejas Networks Ltd (BOM:540595) completed its merger with Saankhya Labs, potentially enhancing its product offerings and market reach.

Negative Points

  • The company's working capital has increased by about INR100 crore, and its borrowing position stands at INR2,768 crore.

  • International business saw a decline due to timing issues with shipments, contributing only 3% to overall revenues.

  • The India government business declined by 4% of revenues year-over-year, mainly due to the tail end of contracts.

  • The company faces challenges in securing private sector deals in India, as many operators prefer existing vendors for network upgrades.

  • Tejas Networks Ltd (BOM:540595) does not provide specific revenue guidance, creating uncertainty about future financial performance.

Q & A Highlights

Q: Do you see the current level of execution sustaining in the upcoming quarters? A: We don't provide revenue guidance, but our business pipeline and order book are strong, which should support continued execution.