Tata Group stock engaged in designing, developing, and manufacturing high-performance and future-ready products for high-speed communication networks hit a 20 percent upper circuit in the day’s trade upon declaring robust Q2FY25 results with a 255 percent jump in Net Profits.
Price Action
With a market capitalization of Rs. 23,051 Crores, the shares of Tejas Networks Limited were trading at Rs. 1,346 per equity share, up 13 percent from its previous day’s close price of Rs. 1,189.65.
Q2FY25 Results
Its Revenue from operations grew by 610 percent YoY from Rs. 395.95 Crores in Q2FY24 to Rs. 2,811.26 Crores in Q2FY25 and it grew by 80 percent QoQ from Rs. 1,562.77 Crores in Q1FY25 to Rs. 2,811.26 Crores in Q2FY25.
Coming to the Net Profit, it generated a profit of Rs. 275.18 Crores in Q2FY25 from a loss of Rs. 12.64 Crores in Q2FY24 and it grew by 255 percent QoQ from Rs. 77.48 Crores in Q1FY25 to Rs. 275.18 Crores in Q2FY25. It generated a Net Profit Margin of 9.75 percent in Q2FY25.
Q2FY25 Update
It has Ramped up 4G/5G RAN shipments for BSNL’s pan-India network, cumulatively shipped equipment for 58,000+ sites and it has received additional orders for densification of installed 4G sites in a few circles.
It has been selected for PTN and DWDM equipment from a Tier-1 Telco in India for capacity expansion, along with receiving initial orders for network modernization win in the US.
Continuing success in the critical infrastructure segment by being selected by a leading state power utility and in smart city projects, along with Good traction for GPON and DWDM products in international markets with new customer wins in America and Africa.
Revenue mix
Coming to the customer-wise revenue mix, Tejas Networks Limited generated 93 percent of its revenue from Indian Private players, Dominated by BSNL 4G related shipments to TCS, Indian Govt was 4 percent and International was 3 percent with key shipments to Africa and South Africa.
About the Company
Tejas Networks Limited is a Wireline and Wireless telecom and data networking products company that designs, develops, and manufactures high-performance and future-ready products for building high-speed communication networks that carry voice, data, and video traffic from fixed line, mobile, and broadband networks.
Its services include customer services, building services, managed services, consultancy services, and nurture services, for Customers like telecommunications service providers, Internet service providers, web-scale Internet companies, utility companies, defence companies, and government entities.
Promoter Stake
Tata Sons holds ~55.42 percent stake in Tejas Networks Limited as a promoter through its investment holding company Panatone Finvest Limited
Ace Investor Stake
Ace Investor Vijay Kedia holds a 1.87 percent stake in Tejas Networks Limited through his firm Kedia Securities Private Limited. He made a fresh position in June 2020 by acquiring a 1.52 percent stake consisting of 14 Lakh equity shares.
Written by: Bharath K.S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
