Shares of Tejas Networks Ltd experienced a sharp 10% surge in early Friday trading, reaching a high of Rs 562.15 apiece. The rally followed the telecom equipment manufacturer's announcement of a substantial order win from Tata Consultancy Services (TCS) valued at Rs 1,537 crore.
The contract mandates Tejas Networks to supply Radio Access Network (RAN) equipment, associated accessories, and installation materials for 18,685 sites within BSNL's 4G mobile network. This significant development is viewed positively by market analysts, with SBI Securities highlighting its potential for a positive impact on the company in the short to medium term.
Tejas Networks' Business and Recent Performance
Tejas Networks specializes in designing and developing high-performance, cost-competitive telecommunication products. These solutions cater to a diverse clientele, including telecommunications service providers, internet service providers, utility companies, and defense entities across various countries. Their products are crucial for building high-speed communication networks that transmit voice, data, and video traffic over optical fiber.
The company's offerings are built on a programmable, software-defined hardware architecture, featuring a common software code-base that facilitates easy development and upgrades of new features and technology standards. This approach has led to their products being deployed by numerous large global network operators.
Despite the recent order win, Tejas Networks reported a consolidated net loss of Rs 202.24 crore in the June quarter, an increase from a net loss of Rs 193.87 crore in the same period last year. However, total revenue from operations saw a significant jump, rising by 99.10% to Rs 402.16 crore in the June quarter, compared to Rs 201.98 crore in the corresponding quarter of the previous year.
First-quarter revenues were primarily driven by international shipments of 5G radios and domestic deliveries of 100G/400G Optical and FTTx products. The company also secured its first commercial win for an end-to-end 5G network deployment in South America during the same quarter.
Arnob Roy, MD and CEO at Tejas Networks, commented on the growing market demand, stating, "We witnessed growing demand for our fiber broadband, packet and optical transmission products from leading carriers and utilities, in India and in international markets, driven by growth in datacenter deployments."