In This Article:
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Tejas Networks Ltd (BOM:540595) achieved a significant milestone by completing 100,000 site shipments for the BSNL 4G project, marking a major accomplishment in their operations.
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The company reported a revenue of 8,923 crores for the financial year, surpassing a billion dollars, which represents a 3.6% year-over-year growth.
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Tejas Networks Ltd (BOM:540595) signed a strategic technology collaboration agreement with NEC Corporation for the development of advanced wireless technologies, enhancing their market reach.
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The company expanded its sales footprint in America, EEA, and ANC, indicating a strategic move to capture more international markets.
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A dividend of 25% has been recommended by the board, reflecting confidence in the company's financial performance and rewarding shareholders.
Negative Points
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The company reported a negative profit after tax of 72 crores for Q4, indicating financial challenges despite revenue growth.
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Provisions for inventory and write-downs of intangible assets amounted to 117 crores in Q4, impacting profitability.
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The India government business segment saw a 66% year-over-year decline, highlighting the volatility and dependency on tender-driven projects.
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Tejas Networks Ltd (BOM:540595) faces ongoing challenges with inventory obsolescence and write-offs due to the nature of their product development cycle.
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The company has a net debt of about 2,300 crores, which could pose financial risks if not managed effectively.
Q & A Highlights
Q: Can you provide details on the inventory write-downs and if there will be any spillover into FY26? A: (CFO) The evaluation of inventory for obsolescence and write-downs is an ongoing process. While provisions will continue, the magnitude may not be as large as this quarter's significant effort.
Q: What is the status of the follow-up contracts from BSNL for 4G and 5G, and other major projects like VIL, Rail Coverage, and BharatNet? A: (CEO) We are in advanced discussions for the BSNL add-on and expect closure soon. The VIL project is expanding, Rail Coverage tender is delayed, and BharatNet is in advanced discussions with system integrators.
Q: How do you expect to achieve revenue growth in FY26 given the current order book and pipeline? A: (CEO) While we don't provide specific revenue guidance, the opening backlog and business pipeline present significant opportunities. We expect a substantial part of these to be executed in FY26.