Following the announcement of a six-fold increase in Q2FY25 sales to ₹2,811 crore, Tejas Networks shares surged 20% to ₹1,427. With a ₹275 crore net profit, the business generated a profit again, helped by BSNL’s 4G and 5G shipments as well as robust domestic demand.
In early morning trading on Monday, October 21, shares of Tejas Networks, a firm sponsored by the Tata Group, jumped 20% to reach their three-month high of ₹1,427 per. This dramatic increase comes after the company’s strong Q2FY25 results, which were made public on Friday after market hours.
In Q2FY25, the company’s consolidated revenue from operations increased sixfold to ₹2,811 crore from ₹396 crore in the same quarter the previous year. After reporting a net loss of ₹13 crore in Q2FY24, it reported a profit after tax (PAT) of ₹275 crore, a notable improvement.
In Q4FY24, the company earned a profit after nine straight quarters of net losses. This trend has continued, as the company reported a net profit of ₹353 crore for H1FY25, up from a net loss of ₹39 crore during the same time prior fiscal year.India’s private sector contributed 93% of Tejas Networks’ total revenue in the September quarter, representing a notable 13.7x YoY growth that was mostly attributable to BSNL 4G-related sales to TCS. On the other hand, overseas revenues made up 3%, representing a 3% YoY loss, mostly from important shipments to South Asia and Africa, while the India-government market contributed 4%, representing a 5% YoY decline.
For BSNL’s pan-India network, the company increased 4G/5G RAN shipments; to date, it has sent equipment to more than 58,000 locations. Additionally, it was given more instructions to densify the 4G sites that were already deployed in a few circles. Tejas Networks’ GPON and DWDM technologies gained significant traction abroad, gaining new clients in the Americas and Africa as well as a first order for network modernisation in the United States.
According to the company’s Q2 investor presentation, the order backlog at the end of the September quarter was ₹4,845 crore, of which ₹4,627 crore came from India and ₹218 crore from outside markets.
The business is concentrating on a number of significant prospects in the wireline and cellular sectors going forward. The company stands to gain from the growth of BSNL’s 4G network and the anticipated 5G upgrade in the wireless industry.
It is also aiming for initiatives like the Kavach system of the Indian Railways, a technology that prevents collisions, and private 5G applications for big Indian businesses.
The company wants to take advantage of Bharatnet Phase 3 activities and the growth of DWDM backbone networks in the utilities industry in the wireline market. Additionally, the company is seeking network modernisation and FTTH (Fibre to the Home) contracts with a number of operators in the Americas and EMEA (Europe, the Middle East, and Africa).
Creator of Wealth
From ₹90 per share to its current trading value of ₹1,369, the stock has produced an astounding return of 1421% over the last four years. Interestingly, the stock saw its biggest monthly gain in April, rising 74%.
Panatone Finvest, a division of Tata Sons, is the largest shareholder of Tejas Networks, which is a member of the Tata Group. It develops and produces high-performance wireline and wireless networking solutions for utilities, government, defence, and telecoms service providers in more than 75 countries.
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