Tejas Networks hits upper circuit after firm reports Q4 PAT at ₹147 crore versus net loss in Q3FY23

Shares of Tejas Networks hit their upper circuit of 20% on Tuesday after the company reported a 343% year-over-year (y-o-y) rise in its fourth quarter net revenue at ₹1,327 crore. Net profit for the quarter stood at ₹147 crore as compared to a net loss of ₹11.5 crore for the same period in the previous fiscal.

For the fiscal year 2024, net revenue jumped 168% y-o-y to ₹2,471 crore. Net profit stood at ₹63 crore as compared to a net loss of ₹36.4 crore in the previous fiscal.

Anand Athreya, Managing Director and CEO of Tejas Networks said the fourth quarter has been a milestone for the company.

"With our strong revenue growth, we have achieved the scale in our business that reflects in our profitability in line with the significant investments that we have made during FY24. We not only ramped up BSNL's 4G/5G RAN shipments, but also completed the delivery of the large volume of IP/MPLS routers for the backhaul network. During Q4, we were granted 22 patents, taking our total patent count to 335," he said.

Sumit Dhingra, CFO of the company said the company has made major investments to ramp up its R&D team and operations which are essential to deliver the growth potential. “We completed FY24 with a net profit of ₹63 crore, a strong order book of ₹8,221 crore,” he said.

Tejas Networks designs and manufactures high-performance wireline and wireless networking products for telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries. The company is a part of the Tata Group, with Panatone Finvest, a subsidiary of Tata Sons, being the majority shareholder.

Shares of the company have gained over 24% since the beginning of the year. The stock has risen over 71% in the last one year.