Shares of Tejas Networks are sharply higher by 10% in early trade on October 21, after a robust seven-fold topline growth, powered by the expansion of 4G business.
The management said it is very confident of the upcoming opportunities and shared details of projects for which it is aiming to bids or contracts are underway.
On QoQ basis, Tejas Networks' net profit has grown by 250%, while revenue rose by 80% compared to the previous quarter. EBIT margin for Q2FY25 came in at 16.3%, and the orderbook stands at Rs 4,845 crore at the end of the September quarter.
The ramp up for BSNL’s pan-India network has contributed to the massive growth in the quarterly revenue, said Tejas Networks, adding that its wireless business has received additional orders for 4G sites in a few circles. There is a Proof of Concept as well underway for the 5G upgrade in the 4G band for BSNL, as part of the existing tender, said the company.
The company said it sees large opportunities in several categories of business, including wireless and wireline network expansion the world over. Speaking to analysts, Tejas Networks' management said they are targetting the BSNL pan-India 4G network expansion as a key business opportunity, as well as the 5G upgrade, for which trials are underway.
State-run telecom company BSNL had floated a tender worth around Rs 65,000 crore to implement the third phase of the BharatNet project, earlier this year. BharatNet is an ambitious rural telecom project, aimed at providing nearly 2.5 lakh Gram Panchayats access to broadband connectivity.
Tejas Networks had supplied broadband access equipment for BharatNet Phase I and II.
Railways' tender for Collision Avoidance System - Kavach - is another opportunity being targeted, said Tejas Networks, and it is waiting for the tender to open and bidding to commence.
Tejas Ntworks is also ramping up a private 5G application for a large enterprise, and trials are underway at this project, said the company.
In the wireline business, Tejas said it is looking at the Bharatnet Phase II expansion as a big opportunity, and the company has bid along with multiple partners for contracts.
Tejas has also been selected for Dense Wavelength-Division Multiplexing (DWDM) equipment from a Tier-1 telecom player in India for capacity expansion. DWDM is an optical fiber multiplexing technology that helps increase the bandwidth of existing fiber networks.
Tejas also told analysts that it is seeing good traction for GPON and DWDM products in international markets, and is registering customer wins in Americas and Africa. GPON is a standard of Passive Optical Network (PON) – a network technology to deliver broadband access via fiber optic cable.
Tejas has also received a network modernization order in US, and said it is seeing more engagement for wireless products, both in India and aboard.
Telecom Minister Jyotiraditya M Scindia had in July said that the government is targetting 100 per cent coverage of villages in terms of telecom connectivity in the next 12 months.
The Centre is also catalysing the next-generation 6G research in India, and has set out the aim of being a contributor in 6G technology and manufacturing by 2030.
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