Tejas Networks stock hits 5% lower circuit after Q2 earnings

For the half-year ended September 30, 2021, net revenue was Rs. 317 crore, which was a YoY increase of 72.1%.

Oct 21, 2021 02:10 IST India Infoline News Service

In the quarter ending September 2021 (Q2FY22), Tejas Networks posted consolidated net revenue of Rs. 172.8 crore, which was a YoY increase of 61.8%. Further, the company's profit after tax was Rs. 3.7 crore as compared to Rs. 4.5 crore for the corresponding previous period.

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 an 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 (PU) scheme has been approved."

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 of September 30, 2021our 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".

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 the corresponding previous period.

At around 2.57 pm, Tejas was trading at the lower circuit of Rs444.10  per piece down 5% on Sensex. 

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