Tejas Networks has reported a net loss of Rs 1.12 billion during the quarter ended (QE) December 2019. The company had reported a net profit of Rs 0.33 billion during the QE December 2018.

Further, the company’s consolidated revenues (net of pass-through component sale) stood at Rs 845 million, a year-on-year decline of 51.5 per cent. The decline in revenues resulted in a loss before tax of Rs 148 million since a majority of costs like R&D, are linked to manpower and are fixed in nature, as compared to a profit of Rs 249 million during the corresponding period in 2018. According to the company, the weak revenue during the quarter was primarily due to a sharp decline in revenues from the Indian government segment.

Commenting on the results, Sanjay Nayak, managing director and chief executive officer, Tejas Networks said, “The Indian telecom sector is undergoing major financial stress, which has resulted in tight capex by all operators. Due to our significant dependence on India, which contributed to 79 per cent of our total revenues last FY, we have seen an adverse impact on our financial performance during the current FY. As a part of our medium term goal of getting 50 per cent of our revenues from international, we continue to focus on growing our international business and have made significant progress during the year in terms of new customer wins and increasing our sales investments in our target geographies. We expect healthy YoY growth for our international business during the current FY. At a macro level, growth drivers of our business remain healthy with increased broadband penetration, cloudification and adoption of 5G.”