Tejas Networks FY19 Net Profit Up 38% At Rs147 Cr

Home grown telecom firm Tejas Networks has announced its financial results for Q1 as well as the full year of fiscal 2019. For the FY 2019, the firm posted net profit of Rs 147.24 crore showing an increase of 38.2% over the previous fiscal. For FY2018, the firm’s net profit was Rs 106.52 crore.

Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build high-speed communication networks over optical fiber.

For the year ended Mar 31, 2019, the company’s total revenue  has been reported at Rs 937 crore as against Rs 795 crore a year ago.

For the quarter ended Mar 31, 2019 or Q4, Tejas reported consolidated revenues of Rs 280 crore as against Rs 193.63 crore in Q4 of the previous year. The firm’s net profit for the quarter was Rs 35.8 crore, a growth of 9.2% over the corresponding period a year ago. In Q4, 2018, the firm’s profit was Rs 32.84 crore.

“We had a strong revenue growth on year-on-year basis, while continuing to expand our profitability. Our international sales investments are yielding positive results and we saw a 70% year-on-year increase in our international-direct revenues. Our non-Government revenues grew by 33%, indicating a reduced dependency on India-Government business, which is inherently lumpy in nature. We believe that the growth drivers of our business continue to be strong, although we will see quarterly volatility. Our focus is to invest and grow our international business which we expect to be around 50% of our total revenues in the medium term. We are pleased to inform that our Board has recommended a maiden dividend (final) of ` 1/- per share to our shareholders,” said Sanjay Nayak, Managing Director and CEO, Tejas Networks.

Mr. Venkatesh Gadiyar, CFO said, “On year-on-year basis, we have improved our operating profit by over 240 bps on account of higher gross margins and operating leverage. During the year, our DSO increased by 101 days, primarily due to delays in payment from a Public Sector operator in India. We believe there is no collection risk since the dues pertain to Government’s BharatNet project, for which specific funds have been set aside from the Universal Services Obligations (USO) fund. During Q4 we have partially collected the amount and expect to collect the overdue amount and normalize our working capital cycle in the near future. We are practically a debt free Company and as of March 31, 2019 our cash and cash equivalents (including investment in mutual funds) were about Rs 369.7 crore.”

During the quarter, the company said it was granted 6 patents bringing its cumulative grant to 106 patents.

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