Tejas Networks shares jump 16% on highest-ever Q4 revenue, profit

Shares of the telecom equipment major-Tejas Networks traded with significant gains of over 15 per cent at Rs 1043.5 after the company's good Q4 show. The company posted its highest-ever quarterly and annual revenue and profitability. The company's Q4 FY24 net revenue soared by 343% year-over-year, reaching Rs. 1,327 crores. FY24 net revenue also showed strong growth at Rs. 2,471 crores, reflecting a 168% increase, showed the company's con-call highlights.

At the day's high, the stock scaled higher by 15.82 per cent to Rs 1049 per share, its fresh 52-week high.

The company also achieved profitability, with Q4 FY24 profit after tax at Rs. 147 crores and FY24 profit after tax at Rs. 63 crores. Its order book as of Q4FY24 closing stands at Rs 8,221 crore, indicating promising future revenue potential. 

The company anticipates further business from  BSNL's 4G/5G expansion, private telcos' 4G/5G investments, and BharatNet Phase 3 rollout. Further, it is well-positioned to capitalize on broadband deployments by private telcos and ISPs. Also, the company is actively exploring opportunities in the US, Europe, Africa, and Asia for rural broadband expansion, network deployments, and utility modernization projects.

However, concerns faced by the company include significant increase in working capital due to the BSNL 4G project, which is expected to normalize as project execution progresses. Also, the company acknowledges competitive landscape, emphasizing cost competitiveness and technological differentiation.

Furthermore, Tejas Networks has received incentives under the PLI scheme and approval for the Saankhya Labs merger.

Tejas Networks is a provider of carrier grade communications equipment and solutions for telecom industry. The Company is a supplier of optical networking equipment to telecom carriers across the world.