Tejas Networks Reports Rs 1,326.88 Cr Sales, 1379% Profit Rise in Q4 FY24

Tejas Networks has released its consolidated financial results for the quarter ending March 2024, demonstrating remarkable growth across key metrics compared to the same period last year. The company's net sales surged to Rs 1,326.88 crore, marking a substantial increase of 343.3% from Rs 299.32 crore reported in March 2023.

Along with the impressive top line, the net profit experienced a dramatic rise, reaching Rs 146.78 crore in the March 2024 quarter. This figure stands significantly higher than the Rs 11.47 crore recorded in the corresponding quarter of the previous year, representing a growth of 1379.69%. The earnings per share (EPS) also registered a notable increase, climbing to Rs 8.61 from Rs 0.70 in March 2023.

Tejas Networks’ earnings before interest, taxes, depreciation, and amortization (EBITDA) reached Rs 318.79 crore for the quarter, up 2337.23% compared to Rs 13.08 crore in the prior year. These numbers underline the company’s enhanced operational efficiency and cost management over the period.

Breaking down the income, the net sales include Rs 1,170.52 crore from core operations and Rs 156.36 crore from other operating income. This total operating income of Rs 1,326.88 crore stands well above the Rs 559.96 crore recorded in the previous quarter ending December 2023 and Rs 299.32 crore in March 2023.

On the expenditure side, raw material consumption amounted to Rs 778.56 crore, up from Rs 190.54 crore a year earlier, reflecting the company's increased scale of production and sales. Employee costs rose to Rs 111.19 crore from Rs 77.52 crore, while depreciation expenses were recorded at Rs 58.18 crore, higher than Rs 35.47 crore in March 2023. Other expenses also increased to Rs 108.19 crore from Rs 32.75 crore, indicating expansions in various operational areas.

Despite these rising costs, Tejas Networks managed to generate a profit before tax of Rs 232.61 crore, reversing losses of Rs 27.04 crore in the year-ago quarter. The tax expense for the period was Rs 85.83 crore, leading to the net profit figure of Rs 146.78 crore.

Market response has been positive, with the company’s shares closing at Rs 906.90 on the National Stock Exchange on April 22, 2024. Over the past six months, the stock has delivered returns of 9.54%, and over the last 12 months, it has appreciated by 42.63%.

Tejas Networks operates in the telecommunications equipment sector, focusing on developing and manufacturing networking products for service providers and enterprises. The company has been increasingly capitalizing on the global and domestic demand for advanced telecom infrastructure, including optical networking and broadband access solutions.

The strong quarterly performance aligns with the growing telecom infrastructure market, driven by expanding digital connectivity needs, 5G rollout, and increased data consumption. Tejas Networks’ ability to deliver robust revenue and profit growth reflects its competitive positioning and operational execution amid evolving industry dynamics.

Investors and analysts will likely watch upcoming quarters closely to assess whether this momentum continues and how the company navigates competitive pressures and supply chain challenges prevalent in the sector.