- vortextimes.com
- April 22, 2024
- 11:30 pm
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Tejas Networks Soars as Q4 Results Signal Profit Turnaround and Strategic Expansion :
The telecom sector is expanding as Tejas Networks starts turning a profit. The share prices of Tejas Networks, a major player in the telecommunications infrastructure sector, have unexpectedly increased after the company released its quarterly results for the quarter ending in March 2024. The business, which designs and manufactures products for wireless networking, has announced a notable turnaround, going from a loss to a sizable profit in the fourth quarter.
Tejas Networks reported a profit of Rs 146.8 crore for the January–March quarter, according to the financial data that has been made public. This represents a significant improvement over the Rs 11.5 crore loss that the company recorded during the same period last year. Along with this remarkable growth trajectory, the company’s revenue increased by 343.40% from Rs 299.3 crore to Rs 1,326.9 crore in a single year.
The market has responded extremely favourably to Tejas Networks’ strong financial performance. The company’s shares saw a spike within minutes of Tuesday’s market opening, reaching an upper circuit of 20%. The stock, which began trading at ₹1004.95 per share and swiftly increased to ₹1088.25 per share, demonstrated investor faith in the company’s prospects and strategic goals.
Tejas Networks’s comeback can be ascribed to a confluence of calculated efforts at growth and wise expenditures on R&D and capacity expansion. In a recent interview, Tejas Networks’ Chief Operating Officer, Arnab Roy, disclosed that the company has increased its R&D efforts and invested heavily in capacity expansion during the quarter.
The significant order that Tejas Networks received from Bharat Sanchar Nigam Limited (BSNL) for the installation of one lakh 4G towers is one noteworthy development that is propelling the company’s growth trajectory. The company has started shipping products to BSNL locations and plans to finish installing the 4G network in 18 to 24 months. Tejas Networks has also started offering IP and MPLS routers, which has strengthened its standing as a major participant in India’s telecom infrastructure market.
Government support programmes, such as the receipt of Rs 32.66 crore for telecom and networking products under the Production-Linked Incentive (PLI) scheme in the financial year 2023, have also bolstered Tejas Networks’ endeavours. In addition, the company and its subsidiaries obtained 22 patents in the fourth quarter, increasing the total number of patents they have obtained to an astounding 355, underscoring their dedication to innovation and technological progress.
Tejas Networks’ turnaround from a losing quarter to a profitable business highlights its ability to bounce back and adjust to the telecommunications industry’s challenges. With strong financial results, deliberate expansion plans, and government backing, the business is well-positioned to have a significant impact on how India’s telecom infrastructure develops in the future. Tejas Networks is expected to establish itself as a top supplier of cutting-edge networking solutions, promoting connectivity and digital transformation across the country, as it keeps coming up with new ideas and broadening its product line.