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