Tejas Networks has reported its financial results for the first quarter ended June 30, 2021. For Q1-FY22, consolidated net revenue was Rs 1,443 million, which was a YoY increase of 86.4 per cent, resulting in a profit before tax of Rs 83 million as compared to a loss before tax of Rs 98 million, for corresponding previous period. Profit after tax (PAT) was Rs 76 million as compared to loss after tax of Rs 98 million for corresponding previous period.
Commenting on the development, Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We are on track for our business growth and improved profitability, driven by rapid adoption of broadband services and increased bandwidth consumption, which is generating robust demand for our equipment. Our international revenues grew by 81.8 per cent YoY and was 52 per cent of total revenues for the quarter. Our order book is healthy and has increased to Rs. 701 crore. We continue to see supportive Government policies for promoting domestic manufacturing and we have applied under the Government’s Performance Linked Incentive (PLI) scheme for telecom equipment.”
Further, Venkatesh Gadiyar, CFO said, “With increased revenues, we continue to improve our profitability. However, our working capital was higher compared to the previous quarter, primarily due to delayed payments from few of our customers because of COVID lockdowns, and higher payments made to our component suppliers to minimize supply chain disruptions. We expect to get our working capital normalized in the next few quarters. As on June 30, 2021 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, stood at Rs 3,120 million and we continue to be a debt-free company.”
