Tejas Networks rallied 3.93% to Rs 567.45 after the company reported a consolidated net loss of Rs 10.88 crore in Q3 FY23 as against a net loss of Rs 24.30 crore posted in Q3 FY22.
Revenue from operations zoomed 156.4% to Rs 274.55 crore in the quarter ended 31 December 2022 from Rs 107.06 crore recorded in the same period a year ago.
The company reported a pre-tax loss of Rs 5.08 crore in Q3 FY23 as compared to a pre-tax loss of Rs 32.91 crore reported in Q3 FY22.
Total expenses surged 92.27% year on year to Rs 300.63 crore in Q3 FY23. Cost of materials consumed was at Rs 160.54 crore (up 155.31% YoY) and employee expenses stood at Rs 68.66 crore (up 118.94% YoY) during the period under review.
With a healthy order book of Rs 1,431 crore and good visibility of new order pipeline (both in optical as well as 4G), the company expects significantly accelerate its quarterly revenue growth.
Sanjay Nayak, managing director and CEO of Tejas Networks, said, We continue to see strong business momentum with a robust order book of Rs 1,431 crore and a good pipeline of large orders for our optical as well as wireless products. Our revenue growth has been constrained due to shortages of semiconductor chips, many of which still have long-lead times. To mitigate this, we have re-engineered and improved our supply chain processes which has resulted in consistent revenue growth. We continue to increase our investments, especially in the 4G/5G products, in line with our business growth plans.
Venkatesh Gadiyar, CFO said, As on December 31, 2022 our cash and cash equivalents, including investment in liquid mutual funds and deposits with financial institutions, were at Rs 1,221 crore and we continue to be a debt-free company. On February 03, 2023 we have received an investment of Rs 300 crore from Panatone Finvest (a subsidiary of Tata Sons Private .), towards final subscription of Series-B Warrants, for which equity shares have been allotted on February 06, 2023.
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Meanwhile, the company's board has issued and allotted 1,55,03,876 equity shares of face value of Rs 10 each fully paid up to Panatone Finvest consequent to the exercise of 1,55,03,876 Series B Warrants held by Panatone Finvest. The allotment has been made for cash, upon the receipt of the remaining exercise price of Rs 193.50 per Series B warrant (being an amount equivalent to the 75% of the warrant exercise price of Rs 258/- per warrant), aggregating to Rs 300 crore.
The shareholding of Panatone Finvest after allotment of equity shares upon exercise of Series B Warrants will be 56.38% of the equity share capital.
Tejas Networks designs and manufactures high-performance wireline and wireless networking products for telecommunications service providers, internet service providers, utilities, defence and government entities in over 75 countries. Tejas Networks is a part of the Tata Group, with Panatone Finvest (a subsidiary of Tata Sons) being the majority shareholder.
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