Tejas Networks today reported its financial results for the second quarter ended September 30, 2017.
Tejas Networks designs develop, manufactures and sells cost-competitive optical and data networking products, which are used to build high-speed communication networks over optical fiber.
For the quarter ended September 30, 2017, our consolidated revenues (net of taxes and pass-through component sale to our contract manufacturers) were Rs. 214.90 crore which was a growth of 20.9% year-on-year. Our operating profits grew by 61.2% year-on-year and net profit grew 68.0% year-on-year. As a percentage of consolidated revenues (net of taxes and pass-through component sale to our contract manufacturers) our operating margin was 13.6% in Q2’18 compared to 10.2% in Q2’17 and our net profit after tax in Q2’18 was 12.5% as compared to net profit of 9.0% in Q2’17.
For the six month period ended September 30, 2017, our revenues (net of taxes and pass-through component sales to our contract manufacturers) were Rs. 415.01 crore which was a growth of 33.5% year-on-year, our operating profits grew by 120.2% year-on-year and our net profit grew 232.5% year-on-year.
Mr. Sanjay Nayak, Managing Director, and CEO of Tejas Networks said, “We continue to see strong growth led by India, which is the world’s fastest growing optical networking market. We believe that India is on the cusp of a prolonged growth cycle in optical networking, driven by strong usage of mobile data as well as broadband by consumers, businesses, and government”.
Tejas continued to strengthen its market position in India. Recently, Ovum (Informa), a global market-leading data, research and consulting firm, ranked Tejas as #1 in market share for India’s Optical Aggregation market for the last 4 quarters rolling.
Mr. Venkatesh Gadiyar, CFO said, “We continue to see the benefits of operating leverage, which is reflected in our strong profitability growth on a year-on-year basis. For the first half of the year, our net profit after tax was Rs. 47.31 crore and we generated cash of Rs. 94.72 crore from operations. As of September 30, 2017, our cash and cash equivalents amounted to the Rs.381.52 crore. We are now practically a debt-free company, with an outstanding debt of just Rs. 3.37 crore as of September 30, 2017.”