Domestic telecom gear firm Tejas Networks today posted 68 per cent jump in consolidated net profit to Rs 26.87 crore, on account of demand for optical fibre equipments for high speed data network.
The company, which has direct presence in around eight countries, had reported net profit of about 16 crore in the same period a year ago.
"There has been significant demand for optical fibre network for building high speed data network. Growth has been highest in India. There was multi-fold increase in implementation of Bharat Net project during the quarter which spurred our business. We were also awarded business of those who failed to supply equipments for Bharat Net," Tejas Networks, MD and CEO, Sanjay Nayak told PTI.
The company posted total revenue of Rs 222.6 crore in the reported quarter. The company had reported Rs 226.22 crore revenue in the corresponding period of previous fiscal. However, the revenues are not comparable because of impact of Goods and Services Tax which has been effective since July 1, 2017.
Nayak said that 70 per cent of the company's revenue came from India market and 30 per cent from overseas.
"Among overseas market, we saw good business growth in Africa, South East Asia followed by the US and Mexico," Nayak said.
Tejas Networks increased investment in research and development by 25 per cent on year-on-year (YoY) basis.
"Our patents have now reached 338. Couple of patents were filed during the second quarter as well. Recently, market research firm Ovum (Informa) ranked Tejas as top company in market share for India's optical aggregation market where we are competing with global technology giants," Nayak said.
He said the company is closely involved in development of standards for 5G services as well, which will give it further edge when the next generation services are rolled out.
Tejas during the quarter recorded Rs 381.52 crore cash in hand and debt of Rs 3.37 crore.
Shares of Tejas Networks closed at Rs 321 a unit, up by 4.76 per cent compared to previous close on BSE today.
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