Conference Call with Tejas Networks Management and Analysts to discuss Q4FY20 Earnings. Listen in to the full transcript here.
Key Highlights
Comments from Sanjay Naik, CEO and Managing DIrector
- Q4FY20 saw net revenues of Rs 52.7 crore, and full year revenues Rs 379.8 crore. Profit before tax was - (Rs. 126.5 crore) for Q4, and for the whole year profit before tax was - (Rs 138.6 crore). Steep fall of revenues in Q4 which is typically the strong quarter for us.
- One time impairment charge of Rs. 69.9 crore. Confirmed orders worth Rs. 483 crore.
- In the last weeks of Q4, despite the confirmed orders we had in hand, customers couldn't come for testing of products, and products ready to ship couldn't be shipped out.
- 57% YoY drop in revenue for the whole year, a big drop. India was 79% of total revenues in FY19, which declined by 63% and international didn't grow as expected. Government business in India was very weak, declined by 88%. There was no business done by BSNL or Bharat Net.
- Critical infra - railways, utilities, power - orders got impacted by the lockdown. India private after the AGR decision in October last year there has been a significant cutback in opex which has impacted our business. We had growth in Q3 but we had a decline of 6% YoY.
- International decline in orders of 31%. Networks became critical services and they couldn't make any changes because of the pandemic, so even confirmed orders did not ship.
- International OEM was flat. International direct where we expected a revenue growth but eventually declined 33% YoY.
- Within India nothing has happened in the year, critical infra declined 71% in the year. We have won the majority of projects out there for bidding, we expect these to get executed this year. We plan to have non-tender business as our focus going forward.
Venkatesh Gadiyar, CFO
- Revenues saw a decline of 80% QoQ for Q4FY20. Full year decline of 56% YoY on net revenues. EBITDA before impairment in FY20 was - Rs 94.6 crore, a decline of 172.6% YoY. Provisioning of Rs. 18 crore in expected credit loss for Q4 due to delays in payment from BSNL and others. EBIDTA after impairment was -Rs 164.5 crore. YoY decline of 226.2%.
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