Tejas network Q2 FY25 conference call highlights

Tejas Networks Q2 FY25 Performance Overview

Managing Director's Statement - Key Points

• Record Revenue: Highest ever quarterly revenue achieved.
• Strong Execution: Demonstrated ability to scale and meet large deployment demands.
• International Presence: Successful expansion with new customer wins in strategic markets.
• Growth Opportunities: Robust prospects in domestic and international markets, driven by digital transformation and network expansions.
• Product Portfolio: Enhanced capabilities in satellite communication devices post-merger with Saankhya Labs.
• Challenges: Acknowledged global supply chain dynamics and intense competition.
• Confidence in Strategy: Strong order book and growing pipeline provide a solid foundation for future growth.

Financial Highlights

• Revenue: INR 2,811 crores (highest quarterly revenue in company history)

• Profit After Tax: INR 275 crores

• EBIT: INR 459 crores

• Order Book: INR 4,845 crores (as of Q2 end)

• Inventory: INR 3,411 crores

• Receivables: INR 3,758 crores

• Working Capital: Increased by INR 100 crores

• Borrowings: INR 2,768 crores (cash position of INR 583 crores)

Order Backlog and Execution

• BSNL Orders:

  • Shipped over 30,000 4G/5G RAN sites this quarter

  • Cumulative total of over 58,000 sites shipped

  • Additional orders received for densification of installed 4G sites

• Closing Backlog: INR 4,845 crores (INR 4,627 crores in India, INR 218+ crores international)

Future Prospects

Domestic Opportunities

1. BSNL 4G/5G Network Expansion

   • Saturation sites for 4G network

   • 5G upgrades (trials ongoing)

2. Indian Railways' Kavach Project (collision avoidance system)

3. BharatNet Phase 3

4. Private 5G applications for large enterprises

5. Expansion of DWDM backbone networks in utility segment

International Project Prospects

1. Network modernization projects in the U.S.

   • Initial orders received and being supplied

   • Potential for additional wins

2. FTTH and GPON opportunities in the Americas and Africa

   • New customer wins reported in these regions

3. Expansion in targeted geographies:

   • North America

   • Europe

   • Middle East

   • Africa

   • Asia

4. Increasing traction for wireless products globally

5. Opportunities in broadband connectivity and smart city projects worldwide

Tejas networks the Indian Huawei.

Tejas network ,touted as Indian Huawei, This company was struggling with execution of projects thanks to the semiconductor components supply chain disruption in world ,Due to this the company underperformed for almost 9 qtrs. The bazooka push the stock got in q4fy24 and has not looked back ,The stock doubled from 650 odd levels to 1400+ levels ,Now again the Q2fy25 results looks great .  

Q2FY25 revenue of Rs 2,811 crore (YoY 610%) and Net Profit of Rs.275 crore.

H1FY25 revenue of Rs 4,374 crore (YoY 649%) and Net Profit of Rs. 353 crore.

Anand Athreya, Managing Director and CEO of Tejas Networks said:, "In Q2FY25 we made record deliveries of 30,000 4G sites. We had continued success with GPON and DWDM wins, both in India and globally. We remain focused on expanding our product portfolio and pursuing market opportunities in line with our strategy."

Sumit Dhingra, CFO of Tejas Networks said: "In Q2-FY25 we had a strong QoQ and YoY growth with a revenue of 2,811 crore. We ended the quarter with an order book of Rs 4,845 crore and a net profit of Rs 275 crore. In this quarter we also completed the merger of Saankhya Labs with Tejas."

Lets look at chart.

The rectangle shows the 9 qtrs the company did not do good the price kept oscillating in a range and witnessed no significant  breakdown ,The smart money held on with its conviction about company performing ,Come q4fy24 the company came with solid numbers and stock doubled in a short time.

We can see a impulse from 650 levels and a small abc almost done with this positive results the stock looks set to scale new uncharted territory soon. Remain invested in this company for long term ,This can do wonders even from here.

Summary of the Reliance Industries Q2 FY25 conference call

                         Summary of the Reliance Industries Q2 FY25 conference call 

1. Consolidated Performance:
   • Revenue: Rs. 2,58,027 crores (up 0.8% YoY)
   • EBITDA: Rs. 43,934 crores (down 2% YoY)
   • PAT: Rs. 19,323 crores (down 2.8% YoY)
   • Robust growth in digital services and upstream, offset by weak O2C performance
   • Retail showed steady performance with focus on enhancing customer proposition and strengthening capabilities
2. Digital Services (Jio):
   • Revenue: Rs. 31,709 crores (up 18% YoY)
   • EBITDA: Rs. 15,931 crores (up 18% YoY)
   • Subscriber base: 478.8 million (slight decline due to SIM consolidation)
   • ARPU: Rs. 195.1 (up 7.4% YoY)
   • 148 million subscribers migrated to 5G, contributing 34% of wireless data traffic
   • Total data traffic: 45 Exabytes (up 24% YoY)
   • Launched JioAirFiber, reaching 2.8 million subscribers
   • Introduced JioAICloud and Jio Brain AI development platform
   • Expanded enterprise offerings including SIP-based voice services and managed WiFi
3. Retail:
   • Revenue: Rs. 76,302 crores (down 1.1% YoY)
   • EBITDA: Rs. 5,850 crores (up 0.3% YoY)
   • PAT: Rs. 2,935 crores (up 5.2% YoY)
   • EBITDA margin from operations: 8.5% (up 40 basis points)
   • Opened 464 new stores, total count 18,946
   • Total operational area: 79.4 million sq ft (up 11%)
   • Focused on streamlining operations and improving margins
   • Digital and new commerce contribution: 17% of total revenues
   • Entered partnership with Delta Galil for lingerie business
   • Launched ASOS in India
   • Expanded Yousta format to 50 stores
   • Launched first Armani/Caffè in India
4. Oil & Gas (E&P):
   • Highest quarterly EBITDA: Rs. 5,290 crores
   • EBITDA margin: 85% (up 1,300 bps YoY)
   • Steady production from KGD6 at 28.5 million SCM
   • Increased production from CBM wells
   • Ceiling price for gas revised to $10.16/MMBtu for second half of FY25
5. O2C (Oil to Chemicals):
   • Revenue: Rs. 1,56,000 crores (up 5% YoY)
   • EBITDA: Rs. 12,413 crores (down 24% YoY)
   • Impacted by weak demand and lower margins in downstream chemicals
   • Transportation fuel cracks down ~50% YoY
   • Benefited from ethane cracking economics and improved domestic fuel retailing
   • Domestic fuel retailing volumes up 28% YoY
   • Won Global Water Tech award for smart water and water conservation project in Jamnagar
6. Operational Highlights:
   • Continued investments in technology to improve customer experience and infrastructure
   • Expanded digital commerce and hyperlocal deliveries through store network
   • Launched new product categories and expanded merchant base in own brand business
   • Steady growth in jewellery business despite higher gold prices
   • Expansion of premium formats like FreshPik and Fresh signature
   • Scaling up of consumer brands business with 250%+ YoY growth in general trade revenues
7. Balance Sheet and Investments:
   • Strong cash flow and liquidity position maintained
   • CAPEX at Rs. 34,000 crores, covered by cash profits
   • Continued investments in technology, supply chain, and distribution infrastructure
8. Future Outlook (Detailed):

a) Digital Services:

• Expect continued growth in 5G adoption and data consumption
• Focus on expanding JioAirFiber services and targeting 1 million new home connections per month
• Further development and commercialization of AI services through JioAICloud and Jio Brain
• Continued expansion of enterprise offerings and SMB segment penetration

b) Retail:

• Anticipate strong growth momentum in festive season (October-November)
• Expect to revert to industry-leading growth rates after 1-2 quarters of streamlining operations
• Continue expansion of Yousta format and other new store concepts
• Focus on improving design capabilities and reducing design-to-shelf cycle
• Expansion of premium and luxury brand portfolio, including F&B offerings
• Further scaling of consumer brands business and expansion of distribution network

c) Oil & Gas:

• Expect improvement in gas production, particularly from CBM
• Anticipate higher gas prices in the second half of FY25
• Forecast strong gas demand due to potential harsh winter and delay in new LNG terminal startups

d) O2C:

• Expect continued volatility in oil prices and downstream product margins
• Anticipate potential improvement in margins if economic stimulus measures are implemented, particularly in China
• Monitor geopolitical factors and OPEC policies that may impact supply and demand dynamics
• Focus on operational optimization and cost management to mitigate margin pressures

e) Overall Business Strategy:

• Continue strengthening of tech platforms across all business segments
• Maintain focus on streamlining operations and calibrated approach to B2B business
• Expect underlying business themes to remain strong, with potential volatility in the next 1-2 quarters
• Anticipate return to industry-leading momentum across segments after current optimization phase

f) Market and Economic Factors:

• Monitor global economic conditions, particularly in China, US, and EU, which may impact demand
• Watch for potential monetary policy changes and economic stimulus measures in key markets
• Prepare for possible impact of rising EV penetration on gasoline demand, particularly in China
• Anticipate potential growth in air travel and consequent increase in jet fuel demand

g) Sustainability and Innovation:

• Continue focus on water conservation and sustainability initiatives across operations
• Further development of AI capabilities and integration into various business segments
• Explore new opportunities in renewable energy and circular economy initiatives

TCS Q2 FY25 earnings conference call Summary

                            Summary of the TCS Q2 FY25 earnings conference call 

1. Revenue Performance:
   • Revenue grew 5.5% year-on-year in constant currency
   • Q2 operating margin was 24.1%, declining 60 basis points sequentially
   • Net margin was 18.5%
2. Deal Momentum:
   • Strong deal momentum with order book at $8.6 billion for Q2
   • Total Contract Value (TCV) was within the comfort range of $7-9 billion
3. Sector Performance:
   • BFSI showed signs of recovery, especially in North America
   • Life Sciences and Healthcare faced client-specific challenges
   • Manufacturing saw some near-term pressure due to labor and supply chain issues
   • Consumer Business Group experienced softness in discretionary spending
4. Geographic Performance:
   • Growth markets (India, APAC, Latin America, Middle East and Africa) performed well
   • North America saw some weakness, partly due to client-specific issues
5. AI and GenAI Progress:
   • Over 600 AI/GenAI engagements, up from 270 last quarter
   • 86 GenAI engagements went into production, compared to 8 last quarter
6. Workforce:
   • Total workforce at 612,724
   • Net addition of 5,726 employees in Q2
   • LTM attrition in IT services decreased to 12.3%
7. Future Outlook:
   • Cautious optimism about improved discretionary spending
   • Expecting gradual easing of inflation and improving macroeconomic trends
   • Focus on cost optimization and efficiency remains a priority for clients
8. Strategic Focus:
   • Investing in growth markets for long-term growth
   • Strengthening partnerships with ISV and ecosystem partners
   • Emphasis on building resilience with clients
9. Challenges:
   • Some client-specific issues impacting revenue in certain sectors
   • Continued caution in discretionary spending by clients
   • Geopolitical uncertainties affecting overall business environment
10. Capital Allocation:
    • Interim dividend of ₹10 per share declared
    • Commitment to returning surplus free cash flow to shareholders.