Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the fourth quarter ended March 31, 2022. Tejas Networks designs, develops, manufactures and sells high-performance telecom and networking products, which are used to build high-speed communication networks.
For Q4-FY22, consolidated net revenue was Rs. 126.5 crore, which was a YoY decrease of 37.2%, resulting in a loss before tax of Rs. 95.9 crore as compared to a profit of Rs. 18.5 crore, for corresponding previous period. Loss after tax was Rs. 49.6 crore as compared to profit of Rs. 33.6 crore for corresponding previous period.
For FY 22, net revenue was Rs. 550.6 crore, which was a YoY increase of 6.9%, resulting in a loss after tax of Rs. 62.7 crore, as compared to a profit of Rs. 37.5 crore for corresponding previous period.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are disappointed that our Q4 revenues were below our expectations. This was due to the ongoing global chip supply shortages and despite our best efforts, we could not manufacture enough products to fulfil open orders. However, we continue to see a positive business momentum with strong Q4 order inflow of Rs. 316 crores, increasing our total order book to an all-time high of Rs. 1,175 crores. We have already taken advance inventory actions for securing components for our planned revenues for next 12 months and we believe that we will be able to effectively address the challenges of the ongoing semiconductor component shortages. We are also pleased that our 4G Radio Access Network (RAN) equipment, as a part of the indigenous 4G solution, has successfully passed the Proof-of-Concept field tests in the network of a large Indian telecom operator.”
Mr. Venkatesh Gadiyar, CFO said, “During Q4, we saw margin pressure due to increase in component prices and lower international revenues. Our cash position continues to be healthy and as on March 31, 2022 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, were Rs. 1,102 crores and we continue to be a debt-free Company”.
For Q4-FY22, consolidated net revenue was Rs. 126.5 crore, which was a YoY decrease of 37.2%, resulting in a loss before tax of Rs. 95.9 crore as compared to a profit of Rs. 18.5 crore, for corresponding previous period. Loss after tax was Rs. 49.6 crore as compared to profit of Rs. 33.6 crore for corresponding previous period.
For FY 22, net revenue was Rs. 550.6 crore, which was a YoY increase of 6.9%, resulting in a loss after tax of Rs. 62.7 crore, as compared to a profit of Rs. 37.5 crore for corresponding previous period.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are disappointed that our Q4 revenues were below our expectations. This was due to the ongoing global chip supply shortages and despite our best efforts, we could not manufacture enough products to fulfil open orders. However, we continue to see a positive business momentum with strong Q4 order inflow of Rs. 316 crores, increasing our total order book to an all-time high of Rs. 1,175 crores. We have already taken advance inventory actions for securing components for our planned revenues for next 12 months and we believe that we will be able to effectively address the challenges of the ongoing semiconductor component shortages. We are also pleased that our 4G Radio Access Network (RAN) equipment, as a part of the indigenous 4G solution, has successfully passed the Proof-of-Concept field tests in the network of a large Indian telecom operator.”
Mr. Venkatesh Gadiyar, CFO said, “During Q4, we saw margin pressure due to increase in component prices and lower international revenues. Our cash position continues to be healthy and as on March 31, 2022 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, were Rs. 1,102 crores and we continue to be a debt-free Company”.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that it has signed definitive agreements to acquire 64.40% of shares of Saankhya Labs Private Ltd. Bangalore (“Saankhya”) for Rs 283.94 Cr in cash. The initial acquisition of Saankhya shares is expected to close within the next 90 days. Tejas Networks, upon procuring all necessary consents and approvals, also intends to proceed with acquiring the balance 35.60% shares through a merger process or a secondary acquisition.
Saankhya was founded in 2007 by technology entrepreneurs with global experience and has developed a wide range of system and semiconductor products for cellular Wireless, Broadcast radios and Satellite communication ground-terminal, which are deployed by customers in India and in international markets. With a rich IPR portfolio and 73 international patents (41 granted, 32 filed), Saankhya is a pioneer in building software defined radios (SDR), powered by its own SDR chipsets. Saankhya has a strong technology team of more than 250 engineers, with deep expertise in wireless communication systems and fabless-semiconductor design.
Mr. Sanjay Nayak, CEO & MD of Tejas Networks said, “We are committed to our vision to create a global telecom equipment company from India, which will provide an end-to-end stack of world-class products and solutions based on latest technologies and customer requirements. This acquisition shows our continued commitment to expand our wireless product offerings to address the growing market opportunity. Saankhya’s products would complement our existing 4G/5G Radio Access Network (RAN) products and positions us well for the emerging opportunities in the O-RAN and 5G Broadcast space. We are excited to welcome the highly talented and experienced team of Saankhya and the intellect and domain expertise they bring for wireless as well as semiconductor design. We expect that this acquisition will accelerate our roadmap to create a full range of trusted and secured, world-class telecommunication products.”
Mr. Parag Naik, Co-founder and CEO of Saankhya Labs said, “We are delighted to become a part of Tejas Networks, which is India’s leading telecom equipment company. Being part of Tejas Networks gives us a strong platform to scale up the business for our wireless products and technologies in India as well as in to international markets. Our customers and partners will also benefit from a larger product portfolio and an accelerated roadmap of our products. This merger will further Saankhya’s founding team’s vision to build a world class technology company from India.”
ONE Media 3.0, LLC (“ONE Media”) which is the largest shareholder of Saankhya, will sell majority of its shareholding in Saankhya and post merger, will retain a minority shareholding in Tejas. Mr. Mark Aitken, ONE Media’s President said, “Our close relationship with Saankhya has been critical to moving our company forward in the world of NextGen Broadcasting. Saankhya has delivered world-class products, technology and solutions, spanning across communication as well as semiconductor domains. From mobile phone design to low-cost, efficient broadcast radio heads enabling single frequency networks, its contributions have been a strategic key for us. We look forward to continuing our business and technology engagement with Tejas Networks, in opportunity areas such as cellularized 5G broadcast infrastructure.
Saankhya was founded in 2007 by technology entrepreneurs with global experience and has developed a wide range of system and semiconductor products for cellular Wireless, Broadcast radios and Satellite communication ground-terminal, which are deployed by customers in India and in international markets. With a rich IPR portfolio and 73 international patents (41 granted, 32 filed), Saankhya is a pioneer in building software defined radios (SDR), powered by its own SDR chipsets. Saankhya has a strong technology team of more than 250 engineers, with deep expertise in wireless communication systems and fabless-semiconductor design.
Mr. Sanjay Nayak, CEO & MD of Tejas Networks said, “We are committed to our vision to create a global telecom equipment company from India, which will provide an end-to-end stack of world-class products and solutions based on latest technologies and customer requirements. This acquisition shows our continued commitment to expand our wireless product offerings to address the growing market opportunity. Saankhya’s products would complement our existing 4G/5G Radio Access Network (RAN) products and positions us well for the emerging opportunities in the O-RAN and 5G Broadcast space. We are excited to welcome the highly talented and experienced team of Saankhya and the intellect and domain expertise they bring for wireless as well as semiconductor design. We expect that this acquisition will accelerate our roadmap to create a full range of trusted and secured, world-class telecommunication products.”
Mr. Parag Naik, Co-founder and CEO of Saankhya Labs said, “We are delighted to become a part of Tejas Networks, which is India’s leading telecom equipment company. Being part of Tejas Networks gives us a strong platform to scale up the business for our wireless products and technologies in India as well as in to international markets. Our customers and partners will also benefit from a larger product portfolio and an accelerated roadmap of our products. This merger will further Saankhya’s founding team’s vision to build a world class technology company from India.”
ONE Media 3.0, LLC (“ONE Media”) which is the largest shareholder of Saankhya, will sell majority of its shareholding in Saankhya and post merger, will retain a minority shareholding in Tejas. Mr. Mark Aitken, ONE Media’s President said, “Our close relationship with Saankhya has been critical to moving our company forward in the world of NextGen Broadcasting. Saankhya has delivered world-class products, technology and solutions, spanning across communication as well as semiconductor domains. From mobile phone design to low-cost, efficient broadcast radio heads enabling single frequency networks, its contributions have been a strategic key for us. We look forward to continuing our business and technology engagement with Tejas Networks, in opportunity areas such as cellularized 5G broadcast infrastructure.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced the appointment of Mr. N. Ganapathy Subramaniam and Mr. Amur S. Lakshminarayanan as Nominee Directors from Panatone Finvest Limited, a subsidiary of Tata Sons Private Limited. This appointment is based on recommendation of the Nomination and Remuneration Committee of Tejas Networks Board, and is subject to the approval of shareholders.
Mr. N. Ganapathy Subramaniam is Chief Operating Officer (COO) of Tata Consultancy Services Limited (TCS) since February 2017. He is also a Director and Chairman of Tata Elxsi Limited since November 2014. He has about four decades of experience in TCS in strategic management of technology and operations, across large corporations in both established and new growth markets. He has been closely involved with the evolution of Indian IT industry and the value creation process with a globally distributed talent.
Mr. Amur S. Lakshminarayanan is CEO & MD of Tata Communications. He has over 35 years of experience in a broad range of leadership roles across regions and industries. Through the course of his career, he has managed and developed scalable businesses, with deep understanding of the global technology market and enterprises’ growing digital needs. Prior to Tata Communications, he was President and CEO of Tata Consultancy Services Japan, where he was in charge of accelerating the company’s market opportunity and developing the brand in the region. His Other leadership positions within TCS also include: Global Head of four P&L units (Telecom, Media & Information Services, HiTech and Utilities) and Head of UK & Europe where he brought significant growth of the business.
Welcoming Mr. N. Ganapathy Subramaniam and Mr. Amur S. Lakshminarayanan to the Board, Mr. V. Balakrishnan, Chairman of the Board of Tejas Networks said, “We are delighted to welcome two industry luminaries to our Board. They bring a rich strategic as well as operational experience, strong domain knowledge and a stellar track record of scaling-up companies from India to global scale. We look forward to their valuable insights, as Tejas Networks accelerates its journey to become a top global end-to-end telecom products company.”
Mr. N. Ganapathy Subramaniam is Chief Operating Officer (COO) of Tata Consultancy Services Limited (TCS) since February 2017. He is also a Director and Chairman of Tata Elxsi Limited since November 2014. He has about four decades of experience in TCS in strategic management of technology and operations, across large corporations in both established and new growth markets. He has been closely involved with the evolution of Indian IT industry and the value creation process with a globally distributed talent.
Mr. Amur S. Lakshminarayanan is CEO & MD of Tata Communications. He has over 35 years of experience in a broad range of leadership roles across regions and industries. Through the course of his career, he has managed and developed scalable businesses, with deep understanding of the global technology market and enterprises’ growing digital needs. Prior to Tata Communications, he was President and CEO of Tata Consultancy Services Japan, where he was in charge of accelerating the company’s market opportunity and developing the brand in the region. His Other leadership positions within TCS also include: Global Head of four P&L units (Telecom, Media & Information Services, HiTech and Utilities) and Head of UK & Europe where he brought significant growth of the business.
Welcoming Mr. N. Ganapathy Subramaniam and Mr. Amur S. Lakshminarayanan to the Board, Mr. V. Balakrishnan, Chairman of the Board of Tejas Networks said, “We are delighted to welcome two industry luminaries to our Board. They bring a rich strategic as well as operational experience, strong domain knowledge and a stellar track record of scaling-up companies from India to global scale. We look forward to their valuable insights, as Tejas Networks accelerates its journey to become a top global end-to-end telecom products company.”
Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the third quarter ended December 31, 2021. Tejas Networks designs, develops, manufactures and sells high-performance telecom and networking products, which are used to build high-speed communication networks.
For Q3-FY22, consolidated net revenue was Rs. 107 crore, which was a YoY decrease of 17.1%, resulting in a loss before tax of Rs. 32.9 crore as compared to a profit of Rs. 9.2 crore, for corresponding previous period. Loss after tax was Rs. 24.3 crore as compared to profit of Rs. 9.2 crore for corresponding previous period.
For the 9 months ended December 31, 2021, net revenue was Rs. 424.1 crore, which was a YoY increase of 35.4%, resulting in a loss after tax of Rs. 13.1 crore, as compared to a profit of Rs. 4.0 crore for corresponding previous period.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “Our Q3 revenues were low as we could not fulfill customer orders due to ongoing global semiconductor component shortage. However, our medium to long-term business momentum continues to be in our favour, as we saw strong Q3 order inflow of Rs. 311 crore, increasing our total order book to an all-time high of Rs. 986 crores. We continue to take proactive measures to address the ongoing semiconductor component shortage challenges.”
During the quarter, we were also certified as a “Trusted Source” for telecom equipment by Government of India.
Mr. Venkatesh Gadiyar, CFO said, “During Q3, we saw margin pressure due to increase in component prices and lower international revenues. In addition, our inventory levels increased, since many orders could not be fulfilled due to shortage of certain critical components. Our cash position continues to be healthy and as on December 31, 2021 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, were Rs. 1,175 crores and we continue to be a debt-free Company”.
For Q3-FY22, consolidated net revenue was Rs. 107 crore, which was a YoY decrease of 17.1%, resulting in a loss before tax of Rs. 32.9 crore as compared to a profit of Rs. 9.2 crore, for corresponding previous period. Loss after tax was Rs. 24.3 crore as compared to profit of Rs. 9.2 crore for corresponding previous period.
For the 9 months ended December 31, 2021, net revenue was Rs. 424.1 crore, which was a YoY increase of 35.4%, resulting in a loss after tax of Rs. 13.1 crore, as compared to a profit of Rs. 4.0 crore for corresponding previous period.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “Our Q3 revenues were low as we could not fulfill customer orders due to ongoing global semiconductor component shortage. However, our medium to long-term business momentum continues to be in our favour, as we saw strong Q3 order inflow of Rs. 311 crore, increasing our total order book to an all-time high of Rs. 986 crores. We continue to take proactive measures to address the ongoing semiconductor component shortage challenges.”
During the quarter, we were also certified as a “Trusted Source” for telecom equipment by Government of India.
Mr. Venkatesh Gadiyar, CFO said, “During Q3, we saw margin pressure due to increase in component prices and lower international revenues. In addition, our inventory levels increased, since many orders could not be fulfilled due to shortage of certain critical components. Our cash position continues to be healthy and as on December 31, 2021 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, were Rs. 1,175 crores and we continue to be a debt-free Company”.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the second quarter ended September 30, 2021. Tejas Networks designs, develops, manufactures and sells high-performance telecom and networking products, which are used to build high-speed communication networks.
For Q2-FY22, consolidated net revenue was Rs. 172.8 crore, which was a YoY increase of 61.8%, resulting in a profit before tax of Rs. 3.3 crore as compared to Rs. 4.5 crore, for corresponding previous period. Profit after tax was Rs. 3.7 crore as compared to Rs. 4.5 crore for corresponding previous period.
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 corresponding previous period.
During the quarter, Tejas Networks received a strategic investment of Rs. 837.5 crore towards preferential allotment of shares and warrants, from Panatone Finvest Limited (a subsidiary of Tata Sons Private Limited).
Mr. 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 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 (PLI) scheme has been approved.”
Mr. 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 on September 30, 2021 our 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 Q2-FY22, consolidated net revenue was Rs. 172.8 crore, which was a YoY increase of 61.8%, resulting in a profit before tax of Rs. 3.3 crore as compared to Rs. 4.5 crore, for corresponding previous period. Profit after tax was Rs. 3.7 crore as compared to Rs. 4.5 crore for corresponding previous period.
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 corresponding previous period.
During the quarter, Tejas Networks received a strategic investment of Rs. 837.5 crore towards preferential allotment of shares and warrants, from Panatone Finvest Limited (a subsidiary of Tata Sons Private Limited).
Mr. 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 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 (PLI) scheme has been approved.”
Mr. 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 on September 30, 2021 our 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”.
Tejas Networks [BSE: 540595, NSE: TEJASNET] today announced that it has been selected by Bharti Airtel (“Airtel”), India’s premier communications solutions provider, to enhance Airtel’s optical network capacity in key metropolitan markets.
Tejas will supply, install and support its state-of-the-art TJ1600 DWDM/OTN products for extending Airtel’s optical networks towards the edge, supporting 5G backhaul, B2B services and broadband applications. The enhanced capacity will enable Airtel to deliver a superior experience to its customers as data consumption in India grows rapidly.
Mr. Randeep Sekhon, Chief Technology Officer of Bharti Airtel said, “Airtel has been making significant investments in expanding its metro network capacity as part of its 5G readiness and for catering to increased bandwidth consumption by fixed-line and enterprise customers. We are delighted to partner with Tejas in this key network intervention that will enable us to deliver world-class experience to our customers.”
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are delighted to expand our decade-long partnership with Airtel, which has established itself as one of the premier telecom service providers in the world. Under this new contract, we will provide our multi-terabit TJ1600 DWDM/OTN products to augment Airtel’s metro network capacity right up the network edge. We are happy to see that our TJ1600 platform, with its “pay-as-you-grow” modular design supporting 100Gbps to 600Gbps wavelengths and a universal OTN/DWDM architecture offering advanced bandwidth expansion and optimization, is gaining significant traction among leading telecom service providers around the globe.”
Tejas will supply, install and support its state-of-the-art TJ1600 DWDM/OTN products for extending Airtel’s optical networks towards the edge, supporting 5G backhaul, B2B services and broadband applications. The enhanced capacity will enable Airtel to deliver a superior experience to its customers as data consumption in India grows rapidly.
Mr. Randeep Sekhon, Chief Technology Officer of Bharti Airtel said, “Airtel has been making significant investments in expanding its metro network capacity as part of its 5G readiness and for catering to increased bandwidth consumption by fixed-line and enterprise customers. We are delighted to partner with Tejas in this key network intervention that will enable us to deliver world-class experience to our customers.”
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are delighted to expand our decade-long partnership with Airtel, which has established itself as one of the premier telecom service providers in the world. Under this new contract, we will provide our multi-terabit TJ1600 DWDM/OTN products to augment Airtel’s metro network capacity right up the network edge. We are happy to see that our TJ1600 platform, with its “pay-as-you-grow” modular design supporting 100Gbps to 600Gbps wavelengths and a universal OTN/DWDM architecture offering advanced bandwidth expansion and optimization, is gaining significant traction among leading telecom service providers around the globe.”
