Tejas Networks (TEJASNET) Q4 19/20 earnings summary

Executive summary

• FY20 was sharply weaker amid India telecom capex cuts and COVID-19 disruption: consolidated revenue fell 56.7% YoY to ₹379.79 crore and PAT was a ₹237.12 crore loss.

• The balance sheet remained debt-free with ₹280.27 crore in cash and cash equivalents; management emphasized expense control, international expansion and new product wins.

Financial highlights

• Consolidated gross profit was ₹135.24 crore, or 35.6% of net revenue, versus ₹366.06 crore and 41.8% in FY19.

• Operating EBITDA was a loss of ₹17.58 crore (-4.6% of revenue), versus ₹196.21 crore (22.4%) in FY19; PBT was a ₹138.57 crore loss.

• PAT was a ₹237.12 crore loss versus profit of ₹147.24 crore; basic and diluted EPS were both -₹25.76 versus ₹16.13 and ₹15.39.

• Net operating cash flow was ₹0.61 crore versus ₹81.59 crore used in FY19; free cash outflow was ₹92.16 crore, improving from ₹161.91 crore.

• The ₹69.87 crore R&D asset impairment and ₹98.55 crore deferred-tax-asset write-down were significant non-recurring charges affecting FY20 results.

Outlook and guidance

• Backlog was ₹483 crore at year-end; management expected ~40% to be recognized as FY21 revenue.

• Order confirmations, execution and component sourcing were expected to remain disrupted for the next two quarters; near-term performance remained uncertain.

• Target: at least 50% of revenue from exports in the medium term, with a stated 2–3-year horizon; FY20 export share was 33%.

• Management expected India business to recover as telcos invest in home broadband, enterprise connectivity and network capacity; R&D spending would continue.