Tejas Networks shares rally 10% on Rs 1,537 crore TCS order win; key details

Shares of Tejas Networks Ltd climbed 10 per cent in Friday's trade after the telecom equipment maker informed stock exchanges has it ahs bagged an order from Tata Consultancy Services Limited (TCS) for supply of RAN equipment, accessories & installation materials for BSNL 4G mobile network for 18,685 sites, valued at Rs 1,537 crore.

The development is positive from short-to-medium term view, said SBI Securities. Following the development, the stock rose 10 per cent to hit a high of Rs 562.15 apiece.

Tejas Networks designs, develops and sells high-performance and cost-competitive products to telecommunications service providers, internet service providers, utility companies, defence companies and government entities in various countries.

These products are used in building high-speed communication networks to carry voice, data and video traffic from fixed line, mobile and broadband networks over optical fiber. Tejas' products utilise a programmable software-defined hardware architecture with a common software code-base that delivers an app-like ease of development and upgrades of new features and technology standards. The company's products are deployed in the networks of many large global network operators, spanning in several countries.

Tejas Networks reported a consolidated net loss of Rs 202.24 crore in the June quarter compared with a net loss of Rs 193.87 crore posted in the same quarter last year.

This is even as total revenue from operations rose 99.10 per cent to Rs 402.16 crore in the June quarter compared with Rs 201.98 crore in the corresponding quarter last year.

The Q1 revenues were driven by international shipments of 5G radios and domestic shipments of 100G/400G Optical and FTTx products. The company registered its first commercial win for an end-to-end 5G network deployment in South America in Q1.

"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," said Arnob Roy, MD and CEO at Tejas Networks.