Tejas Networks announces consolidated results for quarter and year ended March 31, 2019
Bengaluru, April 22, 2019: Tejas Networks [BSE: 540595, NSE: TEJASNET] today reported its financial results for the fourth quarter and year ended March 31, 2019. Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build high-speed communication networks over optical fiber.
For the year ended Mar 31, 2019, our revenues (net of taxes and pass-through component sale) were ₹ 876.7 crore, which was a year-on-year increase of 18.5%. Our operating profit was ₹ 130.3 crore, year-on-year increase of 42.3%. Our profit before tax grew by 41.5% to ₹ 150 crore and profit after tax grew by 38.2% on year-on-year basis.
For the quarter ended Mar 31, 2019, our consolidated revenues (net of taxes and pass-through component sale) was ₹ 265.8 crore, QoQ increase of 50.9%. Our operating profit was ₹ 35.3 crore and our profit before tax was ₹ 37.1 crore, QoQ growth of 48.9%
Mr. Sanjay Nayak, Managing Director and CEO said, “We had a strong revenue growth on year-on-year basis, while continuing to expand our profitability. Our international sales investments are yielding positive results and we saw a 70% year-on-year increase in our international-direct revenues. Our non-Government revenues grew by 33%, indicating a reduced dependency on India-Government business, which is inherently lumpy in nature. We believe that the growth drivers of our business continue to be strong, although we will see quarterly volatility. Our focus is to invest and grow our international business which we expect to be around 50% of our total revenues in the medium term. We are pleased to inform that our Board has recommended a maiden dividend (final) of ₹ 1/- per share to our shareholders.”
Mr. Venkatesh Gadiyar, CFO said, “On year-on-year basis, we have improved our operating profit by over 240 bps on account of higher gross margins and operating leverage. During the year, our DSO increased by 101 days, primarily due to delays in payment from a Public Sector operator in India. We believe there is no collection risk since the dues pertain to Government’s BharatNet project, for which specific funds have been set aside from the Universal Services Obligations (USO) fund. During Q4 we have partially collected the amount and expect to collect the overdue amount and normalize our working capital cycle in the near future. We are practically a debt free Company and as of March 31, 2019 our cash and cash equivalents (including investment in mutual funds) were about ₹ 369.7 crore.”
During the quarter, we were granted 6 patents bringing our cumulative grant to 106 patents. As on date, we have filed for 349 patents.
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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.