Tejas Networks announces consolidated results for quarter ended December 31, 2017

ANI | Updated: Jan 19, 2018 14:04 IST

New Delhi [India], Jan 19 (ANI-NewsVoir): Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the third quarter and nine months ended December 31, 2017.

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

On a sequential basis, for Q3'18 our consolidated revenues (net of taxes and pass-through component sale to our contract manufacturers) grew by 5.2% to Rs. 226.15 crore. Our operating profit grew by 21.7% and net profit after tax by 12.2%. As a percentage of consolidated revenues (net of taxes and pass-through component sale) our operating margin was 15.7% in Q3'18 compared to 13.6% in Q2'18 and our net profit after tax was 13.3% as compared to net profit of 12.5% in the previous quarter.

For the nine month period ended December 31, 2017, our revenues (net of taxes and pass-through component sale) were Rs. 641.16 crore which was a growth of 13.5% year-on-year, our operating profits grew by 22.1% year-on-year and our net profit (before exceptional item) grew by 37.4% year-on-year.

For the quarter ended December 31, 2017, our consolidated revenues (net of taxes and pass-through component sale) declined by 11.0% year-on-year and our operating profits declined by 29.0% and net profit (before exceptional item) declined by 28.5% year-on-year.

Sanjay Nayak, Managing Director and CEO of Tejas Networks said, "Globally, there is a robust demand for optical transmission equipment, driven by increased usage of mobile data as well as broadband by consumers, businesses and governments. With expansion of 4G networks and advent of 5G networks in future, we expect that this trend will continue for the next few years". He added, "We continue to see strong growth led by India, particularly driven by government-funded projects. We see greater opportunities in large telecom projects, however, some of these projects are getting shifted to the next financial year. Due to this, we expect our revenue growth during the current financial year to be around 5%."

Venkatesh Gadiyar, CFO said, "As a technology product company, we continue to see the benefits of operating leverage, which is reflected in our strong profitability growth on a Nine months basis. For the nine months ended, our net profit after tax was Rs. 77.45 crore and we generated cash of Rs. 179.18 crore from operations. We are a debt-free company and our current cash and cash equivalent including investment in liquid mutual funds was Rs. 449.50 crore."

During the quarter, Tejas won many awards, including "Best performing equipment supply partner for Bharatnet Phase-1" from Minister of Communications (Independent Charge) Government of India, "High Growth Electronic Hardware Exporter" from Software Technology Parks of India, Karnataka and "Digital India Excellence Award for Electronics Manufacturing," at the PAN-IIM World Management Conference. (ANI-NewsVoir)