Tejas Networks (TEJASNET) Q4 20/21 earnings summary

Executive summary

• FY21 consolidated net revenue (net of taxes and component sales) rose 35.6% YoY to ₹514.82 crore; PAT was ₹37.54 crore versus a ₹237.12 crore loss in FY20.

• Returned to profitability while remaining debt-free; international revenue grew 62% YoY to 40% of total, and year-end order backlog reached ₹679 crore.

Financial highlights

• Consolidated gross profit rose 56.9% to ₹212.13 crore; gross margin improved to 41.2% from 35.6%, up 560 bps YoY.

• EBITDA was ₹54.93 crore, or 10.7% of net revenue, versus a ₹17.58 crore loss in FY20; operating profit after depreciation was ₹2.81 crore.

• PBT was ₹22.52 crore versus a ₹138.57 crore loss; PAT was ₹37.54 crore versus a ₹237.12 crore loss, including a ₹15.02 crore deferred tax credit.

• Basic and diluted EPS were ₹4.05 and ₹3.99, respectively, versus losses of ₹25.76 per share in FY20.

• Net cash from operations was ₹157.65 crore; free cash inflow was ₹75.13 crore, while cash and cash equivalents rose to ₹364.43 crore.

Outlook and guidance

• Backlog was ₹679 crore at year-end; ~51.3% of unsatisfied performance obligations was expected to convert to revenue within the next 12 months.

• Medium-term objective is to raise international revenue to 50% of total; planned sales expansion includes Europe and CIS.

• Management expects fiber broadband, 4G/5G backhaul and network capacity upgrades to support demand, while near-term volatility and order execution delays remain possible.