Tejas Networks (TEJASNET) Q4 21/22 earnings summary

Executive summary

• FY22 revenue grew 6.9% YoY to ₹550.59 crore, but component cost pressure, lower international sales and higher expected-credit-loss provisions drove an operating loss of ₹157.24 crore and net loss of ₹62.71 crore.

• Strong order inflows lifted the year-end order book to ₹1,175 crore; 68% was expected to convert to revenue within one year.

• Tata Group investment and the proposed Saankhya Labs acquisition marked a strategic shift toward broader wireline, wireless and broadcast offerings.

Financial highlights

• Consolidated revenue was ₹550.59 crore, up 6.9% YoY; product revenue rose 2.4% to ₹479.49 crore and services revenue grew 53% to ₹71.10 crore.

• Gross profit fell 18% to ₹174.00 crore; gross margin declined 960 bps YoY to 31.6%, mainly on higher component costs.

• EBITDA was a loss of ₹80.46 crore, or -14.6% of revenue, versus profit of ₹54.93 crore, or 10.7%, in FY21; PAT was a loss of ₹62.71 crore versus profit of ₹37.54 crore.

• Basic and diluted EPS were both -₹5.97, versus ₹4.05 and ₹3.99, respectively, in FY21.

• Other income rose to ₹40.17 crore from ₹24.85 crore, including ₹2.49 crore interest on an income-tax refund.

Outlook and guidance

• The order book stood at ₹1,175 crore at March 31, 2022, with 68% expected to be recognized within the next year.

• Semiconductor lead-time and supply uncertainty was expected to continue for the next few quarters, potentially delaying execution of orders in hand and affecting FY23 revenue.

• FY23 growth opportunities include India 5G rollouts, cell-site fiberization, broadband expansion and international deals supported by the Tata brand and expanded portfolio.