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• Q4 Revenue: INR 1907 crore, 1.4x year-over-year increase.

• FY25 Revenue: INR 8923 crore, 3.6x year-over-year increase.

• Q4 Profit After Tax (PAT): Negative INR 72 crore.

• FY25 Profit After Tax (PAT): INR 447 crore.

• Order Book at End of Q4: INR 1019 crore.

• Q4 EBIT: INR 18 crore.

• FY25 EBIT: INR 905 crore.

• Q4 Profit Before Tax (PBT): Negative INR 45 crore.

• FY25 Profit Before Tax (PBT): INR 698 crore.

• Inventory at End of Q4: INR 2367 crore.

• Trade Receivables at End of Q4: INR 4884 crore.

• Cash Position at End of Q4: INR 827 crore.

• Net Debt at End of Q4: INR 2300 crore.

• Dividend Recommendation: 25%, INR 2.5 per share.

• Inventory Obsolescence and Write-downs in Q4: INR 117 crore.

• Inventory Obsolescence and Write-downs for FY25: INR 181 crore.

• Warning! GuruFocus has detected 5 Warning Signs with BOM:540595.

Release Date: April 25, 2025

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

Positive Points

• Tejas Networks Ltd (BOM:540595) achieved a significant milestone by shipping 100,000 sites for the BSNL 4G project, marking it as one of the largest single-vendor RAN networks globally.

• The company reported a substantial revenue growth, reaching INR 8923 crore for FY25, which is a 3.6x increase year over year.

• Tejas Networks Ltd (BOM:540595) signed a strategic technology collaboration agreement with NEC Corporation to develop advanced wireless technologies, enhancing their market reach.

• The company expanded its sales footprint in America, EMEA, and ANZ, indicating a strategic push towards international markets.

• Tejas Networks Ltd (BOM:540595) received INR 123 crore for FY24 and the first tranche of INR 189 crore as PLI incentives, supporting its financial position.

Negative Points

• The company reported a negative profit after tax of INR 72 crore for Q4, impacted by provisions for inventory obsolescence and write-downs.

• Inventory levels were high at INR 2367 crore, which could pose a risk if not converted to finished goods and shipped in a timely manner.

• Trade receivables increased to INR 4884 crore, primarily due to higher shipments, indicating potential cash flow challenges.

• The India government revenue segment saw a significant decline of 66% year over year, highlighting the volatility in government contracts.

• Tejas Networks Ltd (BOM:540595) faces ongoing challenges with inventory obsolescence and write-downs, which could continue to impact profitability.

Q & A Highlights

Q: Sumit, regarding the inventory obsolescence and write-downs of intangibles amounting to roughly INR140 crore, is there any spillover expected in FY26? A: Sumit Dhingra, CFO: The evaluation of inventory for obsolescence and write-downs is an ongoing process. While provisions will continue, the magnitude may not be as large as this one-time significant effort.