Tejas Networks’ stock rises 16% as Q4 sales and earnings reach record highs

Tejas Networks, a key player in telecom equipment, saw substantial increases in its shares, rising more than 15% to Rs 1043.5 after the company’s strong Q4 results. The business reported quarterly and yearly sales as well as profitability that were record breaking. The business’s Q4 FY24 net sales of Rs. 1,327 crores saw a 343% increase in net revenue from the previous year. The company’s con-call highlights indicated that FY24 net sales again showed robust growth at Rs. 2,471 crore, showing a 168% rise.

The stock reached a new 52-week high of Rs 1049 per share at the day’s peak, up 15.82 percent.

With Q4 FY24 profit after tax of Rs. 147 crores and FY24 profit after tax of Rs. 63 crores, the firm also demonstrated profitability. With Rs 8,221 crore in its order book as of Q4 FY24 close, it has great potential for future income.

The firm expects more business from the BharatNet Phase 3 implementation, private carriers’ 4G/5G investments, and BSNL’s 4G/5G growth. It is also in a good position to benefit from private telecoms’ and ISPs’ broadband rollouts. Additionally, the business is aggressively looking for prospects for network installations, utility modernization projects, and rural broadband development in the US, Europe, Africa, and Asia.

The corporation is worried about a large rise in working capital brought on by the BSNL 4G project, although this is anticipated to level off when the project is carried out. The business also recognizes the competitive environment, placing a strong emphasis on technical uniqueness and cost competitiveness.

In addition, Tejas Networks has been granted clearance for the merger with Saankhya Labs and incentives under the PLI program.

Tejas Networks supplies the telecom sector with carrier-grade communications gear and solutions. The company provides optical networking equipment to global telecom providers.