Tejas Networks surges 20% on Q4 boost, hits upper circuit

Tejas Networks, a Tata group company, has witnessed a remarkable surge in its share price, hitting a 20% upper circuit and reaching a one-year high on the BSE today. This surge comes on the back of the company’s robust financial performance in the January-March 2023-24 quarter.

The Bengaluru-based company reported a fourth-quarter net profit of ₹147 crore, a significant turnaround from a net loss of ₹11.5 crore in the same quarter last year. Its revenue for the quarter soared to ₹1,327 crore, marking a more than three-fold increase compared to the previous year.

For the full fiscal year FY2023-24, Tejas Networks saw its profit grow to ₹63 crore, after incurring net losses in the previous quarters. The company’s total revenue for the year stood at ₹2,471 crore, a substantial increase from the previous fiscal year.

Anand Athreya, MD and CEO of Tejas Networks, attributed the strong performance to the company’s investments and scale in the business. He highlighted the successful ramp-up of BSNL’s 4G/5G RAN shipments and the completion of a large volume of IP/MPLS routers for the backhaul network.

Chief financial officer Sumit Dhingra revealed that the company’s order book now stands at ₹8,221 crore after a profitable fiscal year. Tejas Networks also received incentives under the PLI Scheme for telecom and networking products in Q4.

The market response to Tejas Networks’ performance has been positive, with the company’s share price witnessing a significant rally in the past month. With a strong financial outlook and promising growth prospects, Tejas Networks continues to be a key player in the optical, broadband, and data networking products industry.