Tejas Networks, which designs, develops, manufactures and sells optical and data networking products, recorded a first quarter net profit of ₹45 crore, a year-on-year increase of 120.3 per cent, on the back of strong pipeline of deals from India and abroad.
In the same period last year, Tejas posted ₹20.4 crore in net profit. Also, PAT as percentage of net revenue increased from 10.2 per cent in first quarter 2018 to 19.4 per cent in Q1 2019, the company said in a filing to the exchanges.
Sanjay Nayak, Managing Director and CEO of Tejas Networks, said: “Our India business continues to show robust growth due to increased demand for data and Indian government’s focus in rolling out broadband networks. While we expect India to continue to be a large part of our business during this year, we see strong momentum in our international business, across South-East Asia, Africa, Mexico and the US. During the quarter, we received orders from seven international customers.
For the June-quarter, consolidated revenues (net of taxes and pass-through component sale) were ₹232 crore, a 16 per cent year-on-year growth. The sequential growth was 135.1 per cent. Operating profit came in at ₹45.3 crore, which was 19.5 per cent of net revenues.
The increased use of data by consumers, businesses and governments results in an increased demand for our optical transmission equipment. The advent of 5G and IoT, densification of fiber networks and proliferation of cloud services, continues to provide a long-term growth opportunity for our business, since our customers need to enhance their network infrastructure.
Venkatesh Gadiyar, CFO, said: “Our investments in R&D have seen a year-on-year increase of 37 per cent on a gross basis.”
During the quarter, Tejas was granted two patents resulting in a cumulative grant of 78 patents. As on date, we have filed for 342 patents. Tejas’ cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, stood at ₹508.9 crore.