Conference Call with Tejas Networks Management and Analysts on its Saankhya Labs Acquisition. Listen to the full transcript.
Conference Call with Tejas Networks Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Telecommunications equipment company Tejas Networks declares Q3FY22 result: Consolidated net revenue was Rs 107 crore, decreased 17.1% YoY Loss before tax of Rs 32.9 crore as compared to a profit of Rs 9.2 crore in the corresponding previous quarter Loss after tax was Rs 24.3 crore as compared to a profit of Rs 9.2 crore in the corresponding previous quarter Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, "Our Q3 revenues were low as we could not fulfill customer orders due to ongoing global semiconductor component shortage. However, our medium to long-term business momentum continues to be in our favour, as we saw strong Q3 order inflow of Rs 311 crore, increasing our total order book to an all-time high of Rs. 986 crores. We continue to take proactive measures to address the ongoing semiconductor component shortage challenges." Mr. Venkatesh Gadiyar, CFO said, "During Q3, we saw margin pressure due to increase in component prices and lower international revenues. In addition, our inventory levels increased, since many orders could not be fulfilled due to shortage of certain critical components. Our cash position continues to be healthy and as on December 31, 2021 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, were Rs 1,175 crores and we continue to be a debt-free Company". Result PDF
Highlights: Q2 revenue was Rs. 172.8 crore and Net profit was Rs. 3.7 crore For Q2-FY22, consolidated net revenue was Rs. 172.8 crore, which was a YoY increase of 61.8%, resulting in a profit before tax of Rs. 3.3 crore as compared to Rs. 4.5 crore, for corresponding previous period. Profit after tax was Rs. 3.7 crore as compared to Rs. 4.5 crore for corresponding previous period. For the half year ended September 30, 2021, net revenue was Rs. 317 crore, which was a YoY increase of 72.1%, resulting in a profit after tax of Rs. 11.2 crore, as compared to a loss of Rs.5.2 crore for corresponding previous period. During the quarter, Tejas Networks received a strategic investment of Rs. 837.5 crore towards preferential allotment of shares and warrants, from Panatone Finvest Limited (a subsidiary of Tata Sons Private Limited). Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We continue to see positive growth momentum in our business. With strong bookings of Rs. 258 crore during the quarter, our order book increased to Rs. 783 crores. However, during the quarter our revenues as well as margins were adversely impacted because of the ongoing global semiconductor component shortage, due to which we are facing challenges in the form of longer lead times and increase in our component costs. Government of India has launched various supportive policies for promoting “designed and made in India” telecom products and we are pleased that our application for the Performance Linked Incentive (PLI) scheme has been approved.” Mr. Venkatesh Gadiyar, CFO said, “During the quarter, we improved our collections and reduced our DSO as well as working capital, despite continuing to proactively invest in inventory to secure long-lead time components. As on September 30, 2021 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, increased to Rs. 1,195 crores and we continue to be a debt-free Company. With our healthy cash reserves, we are in a strong position to invest for our business growth”. Result PDF