Tejas Networks' share price gained 6 percent on Monday following the company's receipt of an advance purchase order worth Rs 696 crore from Bharat Sanchar Nigam Limited (BSNL).
This is the single-largest order the company has received to date, and will involve supply, installation and commissioning of over 13,000 of its TJ1400 series of next-generation access and aggregation routers for the upgradation of BSNL's pan-India IP-MPLS-based Access and Aggregation Network (MAAN). The contract is expected to be completed within the next 18 months.
Follow our live blog for all market action
Tejas Networks designs and manufactures high-performance wireline and wireless networking products for various entities globally. According to Sanjay Nayak, Managing Director and CEO, Tejas Networks, the partnership with BSNL will create a unified, flexible, and scalable IP/MPLS network that will cater to the growing data traffic from BSNL's range of services.
This will also provide the company with an opportunity to deploy their carrier routing products at scale and establish their world-class capabilities in the routing technology area.
The company recently also announced a leadership change, with Anand Athreya taking over as the CEO and MD designate from April 3.
Also Read: Avalon Technologies IPO opens. Worth investing? Here is what analysts say
In Q3FY23, Tejas Networks reported a consolidated net loss of Rs 10.88 crore as against a loss of Rs 24.30 crore in Q3FY22, while its revenue from operations increased 156.4 percent to Rs 274.55 crore. EBITDA for the quarter stood at Rs 8.01 crore in Q3FY23 as against an EBITDA loss of Rs 28.3 crore in the corresponding period of the last fiscal.
The share price of Tejas Network has gained around 30 percent over the last year, although it has declined by 11 percent in the last six months.
At 10.26am, the scrip was trading 5.11 percent higher on the NSE at Rs 610.45, while the benchmark nifty was up 0.060 percent at 17,370.10 points.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
