Q4FY18 Result: Tejas Networks reports weak numbers

Tejas Networks reported Q4FY18 results for the quarter ended March 31, 2018.

The company's consolidated revenue for the quarter came in at Rs. 102.13 crore, registering 62.6 per cent yoy decline. This was primarily due to late receipt of a few large orders. However, the company has ended FY18 with a healthy order backlog of Rs. 579 crore.

EBITDA for the quarter fell by 77.3 per cent yoy to Rs. 10.74 crore with a corresponding margin contraction of 679 bps. EBITDA margin for the quarter stood at 10.5 per cent.

The PAT for the quarter came in at Rs. 29.07 crore, yoy decline of 56.7 per cent.

Looking at the full year numbers, we see the revenue declined by 18 per cent to reach Rs. 767.44 crore while EBITDA fell by 7 per cent to Rs. 152.88 crore. Also, it reported net profit of Rs. 106.52 crore, up 15 per cent yoy.

During FY18, domestic revenue remained strong, mainly in government sector. However, in its international business, company has registered decline in revenue from OEM customers. During the year, company has been granted 20 patents resulting in a cumulative grant of 76 patents.

Tejas Networks designs, develops, manufactures and sells high-performance optical and data networking products, which are used to build high-speed communication networks over optic fiber.

On Wednesday, the stock opened at Rs. 336 per share and touched an intra-day high and low of Rs. 340.30 and Rs. 328, respectively, on the BSE.