Tejas Networks (TEJASNET) Q4 16/17 earnings summary

Executive summary

• FY17 marked a fifth consecutive year of growth; consolidated revenue excluding taxes and component sales rose 33.7% YoY, while EBITDA grew 54.8%.

• Broad-based growth across India and international markets, plus a strong FY18 order backlog, supported expectations for continued business momentum.

Financial highlights

• Consolidated net revenue after excise duty was ₹878.19 crore vs ₹627.45 crore; net revenue excluding component sales was ₹822.45 crore, up 33.7% YoY.

• Consolidated EBITDA was ₹174.23 crore, up 54.8%; operating profit after depreciation was ₹117.81 crore, up 58.5%.

• Reported PAT was ₹63.22 crore, up 121.6%; adjusted PAT excluding the ₹30.47 crore exceptional write-off was ₹93.69 crore.

• Gross profit rose 34.4% to ₹312.65 crore; gross margin was 38.0% vs 37.8%.

• Basic and diluted EPS were ₹9.40, vs ₹4.63 and ₹4.29, respectively, in FY16.

Outlook and guidance

• FY18 began with a strong order backlog and encouraging business momentum; expected demand for higher-speed data networks was seen supporting growth in India and internationally.

• Priorities include expanding international sales and marketing, investing in R&D and product breadth, and pursuing new customers and market share.

• ₹450 crore of IPO proceeds were intended for working-capital repayment, increased R&D spending and international sales and marketing investment.