Shares of this smallcap company jumped 4 percent in Thursday’s trading session after receiving PLI-linked for FY23. The shares have delivered around 15 percent returns to its investors in one year.
With a market capitalization of Rs. 12,565 crores, the shares of Tejas Networks Ltd started Thursday’s trading session on a higher note at Rs. 716 compared to its previous close of Rs. 709.55. During the trading session, the shares hit a high of Rs. 756, gaining around 4 percent and closed the day at Rs. 738 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had received Rs 27.78 crores as incentives for the fiscal year 2022-23 under the PLI (Production-Linked Incentive) Scheme for Telecom and Networking Products.
The said amount accounts for 85 percent of the total claim for FY23 and the balance of 15 percent is expected to be released subsequently as per the PLI Scheme Guidelines.
Furthermore, the company is eligible to receive design-linked PLI incentives for five years, starting with fiscal year 2022-23, on meeting the minimum cumulative investment of Rs. 750 crores committed during the scheme period.
As per the scheme guidelines, the quantum of incentives in each year will be a proportion of the company’s incremental net sales of the approved products under the scheme generated in that year over the net eligible sales done in the baseline year (2019-20).
Coming onto the company’s financial statements, the revenue increased by 41 percent from Rs. 396 crores during the September quarter to Rs. 560 crores in the December quarter. On a contrasting note, the net losses of the company broadened from Rs. 13 crores to Rs. 45 crores during the same timeframe.
Furthermore, as of Q3FY4, the company has an order book of Rs. 9,028 crores. Earlier, its subsidiary company Saankhya Labs received a Rs. 96.4 crore provisional purchase order from NSIL(Department of Space) for the deployment of two-way Satcom Xponders for communication and support systems on marine fishing vessels.
The company get revenue from multiple sources, primarily from Indian private companies which contribute 50 percent of the company’s revenue as of FY23. Moreover, 26 percent of revenue comes from companies owned by the government and the remaining 24 percent of revenue inflows from international companies.
Headquartered in Bengaluru, Tejas Networks was incorporated in 2000. The company designs, develops and manufactures high-performance optical and data networking products that are used by telecom service providers, utilities, government and defence networks.
Written By Vaibhav Patil
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