Revenue (net of taxes and pass-through component sale) grew by 16.0% year-on-year
Net profit grew by 120.3% year-on-year
Tejas Networks (BSE: 540595) (NSE: TEJASNET) today reported its financial results for the first quarter ended June 30, 2018.
Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build high-speed communication networks over optical fiber.
For the quarter ended June 30, 2018, our consolidated revenues (net of taxes and pass-through component sale) were INR 232.0 crore which was a year-on-year growth of 16.0% and sequential growth of 135.1%. Operating profit was at INR 45.3 crore which was 19.5% of our revenues (net) as against 14.1% for Q1 2018. Our profit after tax was INR 45.0 crore which was a year-on-year increase of 120.3%. Our PAT as percentage of net revenue increased from 10.2% in Q1 2018 to 19.4% in Q1 2019.
Mr. Sanjay Nayak, Managing Director and CEO of Tejas Networks, said, “We had a solid quarter of revenue and profitability growth. Our India business continues to show robust growth due to increased demand for data and Indian government’s focus in rolling out broadband networks. While we expect India to continue to be a large part of our business during this year, we see strong momentum in our international business, across South-East Asia, Africa, Mexico and USA. During the quarter, we received orders from seven new international customers. With a strong pipeline of orders and many active engagements, we are confident of strong growth this year.”
The increased use of data by consumers, businesses and governments results in an increased demand for our optical transmission equipment. The advent of 5G and IOT, densification of fiber networks and proliferation of cloud services, continues to provide a long-term growth opportunity for our business, since our customers need to enhance their network infrastructure.
Mr. Venkatesh Gadiyar, CFO, said, “We made a good start to the year with strong revenue growth and increased profitability on account of higher gross margins. As a deep-technology company, we stay committed to invest in R&D, which has seen a year-on-year increase of 37% on a gross basis. We will continue to tightly manage our working capital and expect to see some improvement during the year. We have a strong balance sheet to support our growth and our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, stood at INR 508.9 crore.”
During the quarter, we were granted 2 patents resulting in a cumulative grant of 78 patents. As on date, we have filed for 342 patents. We also won the ‘Best Exporter Award’ from Federation of Karnataka Chambers of Commerce and Industry.
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements due to risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to successfully implement our strategy and our growth and expansion plans, technological changes, our exposure to market risks, general economic and political conditions in India which have an impact on our business activities or investments, changes in the laws and regulations that apply to the industry in which the Company operates. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company.