Quarterly Results For the Period Ended December 31, 2017
Sequential CoO basis, C2318 Revenues (net of taxes and pass-through component sale) grew by 5.2%, Operating profit grew by 21.7% and Net profit grew by 12.2%. Nine months YoY Revenues (net of taxes and pass-through component sale) grew by 13.5%, Operating profit grew by 22.1% and Net profit (before exceptional item) grew by 37.4% year-on-year.
Bengaluru, January 19, 2018: 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 C3’18 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 O318 compared to 13.6% in O2’18 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.
Mr. 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%”.
Mr. 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.
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ABOUT TEJAS NETWORKS
Tejas Networks designs, develops and sells high-performance and cost-competitive networking products to telecommunications service providers, internet service providers, utilities, defense and government entities in over 75 countries. Tejas products utilize programmable, software-defined hardware architecture with a common software code-base that delivers seamless upgrades of new features and technology standards. Tejas Networks is ranked among top-10 suppliers in the global optical aggregation segment and has filed over 349 patents.
For more information, visit Tejas Networks at http://www.tejasnetworks.com or
Contact
Investor Relations: ir@india.tejasnetworks.com
Attn: Mr. Santosh Kesavan: skeshavan@india.tejasnetworks.com
Phone: +91 80 41794600
SAFE HARBOUR
Certain Statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in Such forward-looking statements due to risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to successfully implement our strategy and our growth and expansion plans, technological changes, our exposure to market risks, general economic and political conditions in India which have an impact on our business activities or investments, changes in the laws and regulations that apply to the industry in which the Company operates. The Company does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the Company.