NEW DELHI: Domestic telecom gear firm Tejas Networks report 68% jump in net profit at Rs 26.87 crore during the July-September quarter.
Tejas Networks designs, develops, manufactures and sells high-performance and cost-competitive optical and data networking products, which are used to build high-speed communication networks over optical fiber.
For the quarter ended September 30, 2017, consolidated revenues (net of taxes and pass-through component sale to our contract manufacturers) were Rs. 214.90 crore which was a growth of 20.9% year-on-year.
The company’s operating profits grew by 61.2% year-on-year and net profit grew 68.0% year-on-year. As a percentage of consolidated revenues (net of taxes and pass-through component sale to contract manufacturers) operating margin was 13.6% in Q2’18 compared to 10.2% in Q2’17 and net profit after tax in Q2’18 was 12.5% as compared to net profit of 9.0% in Q2’17.
For the six month period ended September 30, 2017, revenues (net of taxes and pass-through component sales to our contract manufacturers) were Rs. 415.01 crore which was a growth of 33.5% year-on-year, operating profits grew by 120.2% year-on-year and net profit grew 232.5% year-on-year.
Sanjay Nayak, Managing Director and CEO of Tejas Networks said, “We continue to see strong growth led by India, which is the world’s fastest growing optical networking market. We believe that India is at the cusp of a prolonged growth cycle in optical networking, driven by strong usage of mobile data as well as broadband by consumers, businesses and government”.
Tejas continued to strengthen its market position in India. Recently, Ovum (Informa), a global market-leading data, research and consulting firm, ranked Tejas as #1 in marketshare for India’s Optical Aggregation market for the last 4 quarters rolling.
Venkatesh Gadiyar, CFO said, “We continue to see the benefits of operating leverage, which is reflected in our strong profitability growth on a year-on-year basis. For the first half of the year, our net profit after tax was Rs. 47.31 crore and we generated cash of Rs. 94.72 crore from operations. As of September 30, 2017, our cash and cash equivalents amounted to Rs.381.52 crore. We are now practically a debt-free company, with a outstanding debt of just Rs. 3.37 crore as of September 30, 2017.”
Recently the company strengthened its management team and N R Ravikrishnan has joined on October 11, 2017 as General Counsel and Chief Compliance officer. Earlier, he worked as the Company Secretary and Head (Compliance, Audit and Facilities) in Infosys Group.