Release Date: July 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Tejas Networks Ltd (BOM:540595, Financial) reported a strong order book of 1,241 crores, which is higher than the previous quarter.
- The company is expecting to receive a significant order of 1,500 crores for the BSNL 4G network expansion, indicating potential future revenue growth.
- Tejas Networks Ltd has signed strategic partnerships with Rakuten Symphony and Intel, which could enhance their 5G solutions and expand global market reach.
- The company has launched advanced products, including a 1.2 terabit per wavelength DWDM solution, enhancing their technology portfolio.
- Tejas Networks Ltd received PLI incentives of 122 crores, reflecting government support and recognition of their contributions to the technology sector.
Negative Points
- The company reported a significant decline in quarterly revenue to 202 crores, down from 1,907 crores in the previous quarter, primarily due to delays in purchase orders and inventory arrivals.
- Tejas Networks Ltd experienced a net loss of 194 crores, which is higher than the previous quarter's loss.
- The company's trade receivables are high at 4,453 crores, indicating potential cash flow challenges.
- There are delays in the execution of certain projects, including the BSNL 4G network, which could impact future revenue realization.
- The company has increased borrowings to 3,990 crores, primarily for working capital and CapEx, which could affect financial stability if not managed properly.
Q & A Highlights
Q: Can you provide a breakdown of the India revenue between private and government sectors?
A: We have stopped providing a detailed breakdown as the numbers were not clear due to overlaps between private entities and government end customers. Historically, India government revenues were around 16% of the total, with the rest being private.
Q: What is the reason for the quarter-on-quarter decline in employee costs?
A: The decline is mainly due to certain provision reversals related to exits and variable pay. Our employee costs align with our investments in R&D and international sales, and we expect them to increase going forward.
Q: How soon can we expect the 4G and 5G proof of concept to translate into revenue?
A: We are engaged in several POCs both domestically and internationally. We expect some business closures in 4G and 5G this year, with ongoing discussions with multiple operators globally.
Q: What is the status of the BSNL 4G project and the expected timeline for receivables?
A: The project is progressing well with satisfactory network performance. We expect a significant reduction in receivables over the next couple of quarters, with most collections happening this financial year.
Q: Can you elaborate on the partnership with Rakuten Symphony and its impact?
A: Rakuten Symphony is a provider of CUDU components for Open RAN solutions. We are collaborating to offer joint solutions globally, leveraging their presence in Japan, Europe, and other regions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
