Tejas Networks Q4 dips to net loss of Rs-49.62cr on sharp spike in allowances for credit losses to Rs68cr

24 Apr 2022 , 11:08 AM

Tejas Networks Ltd reported -37.24% fall yoy in sales revenues for the Mar-22 quarter on consolidated basis at Rs126.50cr. On a sequential basis, the revenues were higher for the quarter by 18.16%.

For the full year FY22, the revenues were higher by 7.7% at Rs594cr. The management of Tejas Networks has admitted that the sharp fall in revenues were caused by the ongoing microchip shortage.

However, Q4 order inflows stayed robust at Rs316cr, with the total order book standing at Rs1,175cr. The company hopes to rectify the sales situation with the advance inventory orders that it has already commenced for a 12 months period.

For the fourth quarter, the company dipped into a net loss of Rs-49.62cr compared to a profit of Rs33.55cr in the year ago period.

The losses almost doubled compared to the sequential period on account of the acute microchip shortage in the market.

The combination of lower international revenues and higher input costs saw pressure on margins resulting in a dip into net loss for the second quarter in succession. The profits were impacted negatively by the Rs68cr provisions made by the company for credit losses.

Financial highlights for Mar-22 compared yoy and sequentially

	Tejas Networks
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 126.50	₹ 201.55	-37.24%	₹ 107.06	18.16%
Net Profit (Rs cr)	₹ -49.62	₹ 33.55	-247.90%	₹ -24.30	104.20%
Diluted EPS (Rs)	₹ -4.34	₹ 3.49		₹ -2.11
Net Margins	-39.23%	16.65%		-22.70%