Tejas Networks Ltd. is a provider of carrier-grade communications equipment and solutions for the telecom industry. The Company is a supplier of optical networking equipment to telecom carriers across the world. India’s largest R&D-driven telecom equipment company, founded by technocrats, having 750+ employees. India’s first deep technology product company to be publicly listed in the Indian Stock Exchanges in June 2017.

01

Company Background
Tejas Networks Ltd.

02

Products

03

Customers
“Tejas design, develop and market high-performance optical and data networking products to telecommunications service providers, utilities, defense, and government entities around the world.”  

04

Revenues

India-Pvt + International contributed to 85% of total (YoY decline of 18% for FY20).

International revenues declined, due to delays in converting business won into PO for Q4

05

Financials

FY20 saw a sharp decline in revenues and profits, primarily due to India business

  • India business declined sharply due to unprecedented turbulence and financial stress in the sector and slump in Govt. orders (88% YoY)

  • Q4 was adversely impacted by COVID-19, resulting in the missed shipment (for orders in hand) and delayed orders for the business that we have won.

  • Order book as on Apr 1, 2020, is ₹ 483 Crores, out of which 35-40% will be for revenue in FY21

Revenues (In Crores.)
Operating Profit Margin (%)
Fixed Assets (In Crores.)

The operating revenue grew by 4% to 28,204 Lakhs this year

Tejas has maintained an OPM of 18%-22%. A sharp decline can be noticed in the current year due to low revenues.

Sustainable growth can be seen in fixed assets after the financial year 2015.

Assets are constantly growing..

06

Financials
Dividend History(%)

Tejas Networks has paid a dividend of 10% since it got listed in 2017.

Reserves (In Cores)

Tejas has a good amount of reserves which projects as a strong backbone of the company

Cash (In Crores)

Tejas Networks has maintained a good amount of liquidity, their quick ratio is 5.08 which is much higher than the competitors.

Tejas Networks is Virtually Debt Free

07

Liability Analysis
Equity Capital (In Crores.)

The share capital in the company has increased since inception.

Borrowings (In Cores)

Tejas Networks is virtually Debt-free, No payment default occurred and the debt reduced significantly

Trade Receivable/Payable

Tejas is expected to receive 376 cr. as Trade Receivables and expect to pay 75 cr, as payables, which seems to be a fair percentage

08

Shareholding Pattern
Way Forward

09

Future Outlook
  • With Work-From-Home and access to many services from home becoming the new normal, data traffic on telecom networks has seen a surge, and telcos globally are expected to increase their investments in-home broadband and in upgrading capacity of their backbone networks.

  • Macro drivers of our business continue to be robust- continuing growth in data usage, broadband adoption, 5G, cloud, data center, and increased fiberization.

  • Offer a credible alternative for customers who want to diversify their supply chain risk away from China

Indicators

10

Technical Indicators