Tejas Networks (TEJASNET) Q4 22/23 earnings summary

Executive summary

• FY23 delivered record consolidated revenue of ₹919.57 crore, up 67% YoY, and a record ₹1,934 crore order book, up 65%; consolidated net loss narrowed to ₹36.41 crore.

• Growth momentum and the order pipeline underpin expectations for significantly faster revenue growth in FY24 and beyond.

Financial highlights

• Consolidated revenue ₹919.57 crore, up 67%; gross profit ₹239.42 crore, up 38%, while gross margin declined to 26.0% from 31.6%.

• Consolidated operating loss after depreciation and amortization narrowed to ₹105.57 crore from ₹157.24 crore; EBITDA was ₹16.93 crore, or 1.8% of revenue, versus an ₹80.46 crore loss.

• Consolidated net loss narrowed 42% to ₹36.41 crore from ₹62.71 crore; basic and diluted EPS were both -₹2.46, versus -₹5.97.

• Standalone revenue grew 58.3% to ₹869.08 crore; standalone PAT was ₹3.04 crore versus a ₹63.73 crore loss.

• Cash and cash equivalents reached ₹1,306.36 crore; operating cash outflow was ₹380.14 crore and free cash outflow ₹629.26 crore, largely reflecting inventory and investment needs.

Outlook and guidance

• Management expected significant acceleration in revenue growth during FY24 and beyond, citing strong wireline and wireless order visibility and the record backlog.

• About 72% of the ₹1,934 crore backlog was expected to convert to revenue within one year; the balance thereafter.

• Capacity expansion included four new EMS partners; a ₹750 crore investment commitment was made under the Design-linked PLI scheme over its scheme period.