Tejas Networks shares jump almost 5% on THIS order; check details

“Further to our communication dated August 16, 2023, and in pursuance of the Master Contract between Tata Consultancy Services Limited (TCS) and Tejas Networks Limited (Tejas or Company) for supply of goods and/or services for the BSNL 4G Project, TCS has informed the Company that it has received an add-on Advance Purchase Order from BSNL,” Tejas said in a statement to the stock exchanges.

The value of supplies for Radio Access Network (RAN) and other equipment to TCS from Tejas for this deployment is expected to be approximately ₹1525.53 crore, exclusive of taxes.

Following this, shares of Tejas Networks were trading at ₹744.25 apiece on the National Stock Exchange, surging 2.85%. The stock had jumped 4.96% to an intraday high of ₹759.5 per share.

“The detailed purchase orders for the same would be issued by TCS to the company in due course, subject to completion of certain conditions and documentations,” Tejas further said.

The wireline and wireless networking products manufacturer reported a consolidated net loss of ₹71.8 crore in the latest March quarter. In the year-ago quarter, the company had posted a net profit of ₹146.78 crore.

Revenue from operations increased 42.4% to ₹1,906.98 crore in Q4 FY25, compared to ₹1,339.17 crore in the corresponding period of the last fiscal year.

Sumit Dhingra, chief financial officer, said that the firm ended the quarter with an order book of ₹1,019 crore. The net loss was due to increased investments in R&D and one-time changes in inventory and R&D expenses, he said.

"We ended FY25 with a revenue of ₹8,923 crore and a net profit of ₹447 crore, a significant growth over FY24," Dhingra added.

The company's board had recommended a dividend of ₹2.5 per share, subject to approval at the annual general meeting (AGM) on June 27.