This Tata Group stock which deals in the business of designing and manufacturing wireline and wireless networking products was down by 9 percent after net profit turned loss to profit.
Price Movement
In Friday’s trading session, Tejas Networks Ltd’s share price touched a day’s low of Rs. 994.05, which was down by 9.36 percent. The share price reiterated from the day’s high and was trading at Rs. 1,008.95, which is 8.01 percent lower than the previous closing price of Rs. 1,096.75. In the past year, the stock has delivered returns of around 28 percent and has outperformed the Nifty Index.
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 2,497.30 crore which increased by 346 percent year on year, from Rs. 559.96 crore in Q3FY24 and a 5.94 percent fall from Rs. 2,655.16 crore in Q2FY25. Their net profit turned profitable in Q3FY25 at Rs. 165.67 crore compared to a loss of Rs. 44.87 crore in Q3FY24. Quarterly, the profits were down by 39.79 percent from Rs. 275.18 crore.
Reason for the stock fall?
The sharp decline in the stock was due to a rise in inventory levels and a steep decline in the order book from the previous quarter’s Rs. 4,845 crore compared to the current level of Rs. 2,681 crore.
Management Commentary
Anand Athreya, the Managing Director and CEO of Tejas Networks said, “In Q3FY25 we made deliveries of 27,000+ sites for the BSNL 4G/5G network, leading to a total of 86,000+ sites delivered till date. We had new customer wins with our GPON, Packet Transport and DWDM products, both in India and globally. We also had increased engagements with our 4G/5G RAN products with several operators worldwide.”
Sumit Dhingra, the CFO said, “In Q3-FY25 we had a strong YoY growth with a revenue of 2,642 crore. We ended the quarter with an order book of Rs. 2,681 crore and a net profit of Rs. 166 crore. In this quarter, we significantly expanded our R&D and manufacturing facilities in line with our business and headcount expansion.”
Revenue Segments
As of December 2024, the company recognises telecom and data networking-related products and services as its operating segment.
About the company
Tejas Networks, founded in 2000 and headquartered in Bengaluru, India, designs and manufactures advanced telecommunications equipment for global service providers, focusing on R&D and innovation across 75 countries.
Written by Santhosh 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.
