Shares of this telecom equipment company jumped around 1 percent in Tuesday’s trading session after signing a strategic partnership with Telecom Egypt. The shares have delivered around a 20 percent return to its shareholders in one year.
With a market capitalisation of Rs. 11,729 crores, the shares of Tejas Networks Ltd started Tuesday’s trading session on a higher note at Rs. 693 compared to the previous close of Rs. 687. During the trading session, the share hit a high of Rs. 698.90, gaining around 1 percent and are currently trading at Rs. 686 apiece.
According to the exchange filing, the company had signed a Memorandum of Understanding (MoU) with Telecom Egypt (TE), ITIDA (Information Technology Industry Development Agency) and NTI (National Telecom Institute) to replicate its experience of implementing Bharatnet (Rural Broadband Project) and NKN (National Knowledge Network) projects in Egypt.
Furthermore, other broad areas of cooperation include capacity building of Egyptian engineers and technicians on state-of-the-art telecom and networking technologies, establishing local manufacturing and R&D facilities for Fiber-to-theHome (FTTH) products, and setting up technical support services in Egypt both for customers within the country as well as for the larger Africa and Middle East region.
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.
As of Q3FY24, 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.
Moreover, the Tata Group company had also 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.
The company derives its revenue from various sources, with Indian private companies accounting for 50 percent of its total revenue as of FY23. Additionally, 26 percent of the revenue is generated from government-owned enterprises, while the remaining 24 percent originates 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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