Tejas Networks posts Q1 net profit of Rs20 crore
New Delhi: Domestic telecom gear maker Tejas Networks on Thursday reported a consolidated profit of Rs20 crore for the April-June quarter helped by rise in demand for broadband equipment.
The company had registered a loss of Rs 1.75 crore in the same period a year ago.
"There is a huge demand for data in the country which is fuelling demand for broadband equipment. Both careers (telecom operators) and governments are investing in building digital networks. The growth momentum is good and it will continue to grow at good pace," Tejas Networks CEO and MD Sanjay Nayak said during telephonic conversation with PTI.
Tejas Networks makes equipment for laying out fixed line broadband infrastructure. The company registered a 49.28% jump in its revenues at Rs223.81 crore in the reported quarter compared to Rs 149.92 crore in the corresponding period of 2016-17.
"The government is serious about BharatNet and they are expeditiously rolling out networks. Earlier careers used microwave for broadband but it was fine for 2G and 3G service but in 4G you don't get the juice of services on radio. It has to be 80% on fibre network and 20 per cent on microwave. All operators are investing in fixed infrastructure now," Nayak said.
Tejas Network earned 60% of business from government vertical and 40% from private sector. Its client base includes Bharti Airtel, Idea Cellular, Reliance Jio, Tata Communications etc. Tejas supplies broadband equipment in emerging markets of South East Asia, Africa and Latin America as well.
"If a telecom equipment can work in India, it can work in all emerging markets. Requirement of emerging markets are almost similar," Nayak said. Nayak said that operators have started building fixed networks now and it will go long way.
"Our core growth is on right track. There may be fluctuations in quarterly performance but on annualised basis we expect growth of the company to be in the range of 20%," Nayak said. The company has workforce of 610 at present and plans to add up to 100 people for research and development work and double headcount for overseas operations.
The company makes equipment for laying out fixed line broadband infrastructure. Talking about capital expenditure, Nayak said that Tejas Networks will invest Rs 40-45 crore in research and development followed by investments of Rs10-15 crore in tangible assets during current fiscal.
Shares of Tejas Network closed at Rs340.7 a unit, up by 2.73% compared to previous close, at BSE on Thursday .