Thread by @CAALOKJAIN_NIRC

#Tejas_Network Ltd Share Information

1.LCP-492.45(13-04-2022)
2.52WH- 578.45(11-04-2022)
3.52WL- 157(19-04-2021)
4.EPS-1.79, PE-275.71, IPE-56.37, BV-138.51, Total No Of Shares-11.45 Cr, FV-10, ROCE- 2.37%,

5) ResultsQ3FY22- Sale 107 Cr Vs 173 Cr in Sept21 and 135 Cr in Dec20. PAT Loss of (24.30) cr Vs 3.66 Cr in sept21 and Loss of 9.23 cr in Dec20.

Shareholding- Promoters-37.17%, FII Holding-14.01%, DII-5.21%, NII-43.60%. Kedia Securities-3.42%, Sanjay Nayak (CEO of Company) -2.05%, On 13-04-2022 Penatone Finvest Ltd (Tata Group Company) allotted 3.68 Cr Shares on warrants. Now Tata group stake rise to 52.45% from 24.33%.

Credit Rating-On 11-04-2022 ICRA has upgraded the long-term rating of Company to [ICRA]A+ (Stable) from [ICRA]A-
Debt Free-It is a practically debt-free company, with cash and cash equivalents (incl. investment in mutual fund) of 290 cr Well funded to meet all our growth needs

Key Strategic Change-Reducing dependence on Govt. business (which declined 88% in 1H) & focusing on increasing run-rate business (India-Private + International) (increased 28% in 1H). India Private is growing healthily (67% YoY in 1H) and is expected to deliver strong YoY growth.

Order Books- Company won business worth Rs.311 Crores in Q3FY22 and as a result its order book has increased to Rs.986 Crores as on 31-12-2021.

Good Scope of Business From BSNL-Its 4G RAN (Radio Access Network) undergoing Proof-of-Concept for BSNL 4G network, via our SI partner. Proof of Concept under process. BSNL would like to Cover 57K sites to 1 Lac sites in FY22-23. Will lead to few thousand Cr of revenue for Tejas.

Selected for PLI Scheme-Base FY will be 2019-20. Company will get PLI Incentive on incremental Sales. Incremental Sales could be good because of the low base of FY2019 – FY2020. Base Revenue was 380 Cr. Any Incremental Revenue above 380 cr would be eligible for 6% PLI Incentive.

Approved As Trusted Source for Telecom Product by Govt of India-They have been approved as a trusted sourced for telecom products by the Government of India.

Two Person from Tata Group appointed on its Board-NG Subramaniam from TCS & Amur Lakshminarayanan from TCL.
16. Addressable market for Company product- is close to about $100 billion. real addressable market is probably lower may be around 15% to 20% of the total.

PLI scheme for the semiconductor components- has two elements one is semiconductor component and other is a design element. Company do a lot of design. So as far as Design is Concerned Tejas Gowing to benefit in a Big Way with the recent Aquisition of Saankhya Labs.

Acquisition of Saankhya Labs Private Limited- On 9th April- Board approved acquisition of 62.51 Lakh shares @452 Per share totalling 284 Cr (resulting in 64.40% stake) in Saankhya Labs Private Limited. The current management team & the employees will continue to run the company

As Per Latest Concal on this acquisition the key Benefits Of This Acquisition are-
1. Enhance the Company’s Wireless offerings by adding 5G O- RAN, 5G Cellular Broadcast and Satellite communication products. On chip design, Saankhya is a very important asset to possess.

2. Enhances Tejas IPR portfolio- Saankhya have 73 international patents, 41 of which as approved, 32 are in the final stages of approval. In addition, there is a lot of design IPR of what it takes to build complex hardware, very unique algorithms, specialised algorithms,

especially in terms of the complex technologies that are required for building satellites, broadcast and 5G products, and of course, radio frequency design expertise, and very few countries in the world have expertise across all these domains.

3) 5. Fabless Semiconductor Chip Company-Saankhya is a premier wireless communication as well as a semiconductor solutions company. So, they have a skill set which spans across both building system products and also building chips (on the semiconductor side).

They are also India’s first fabless semiconductor chip company, & they have actually built their own chip, which is going into what is called software-defined radios, & they already have a lot of customers using that, either in satellite phones or dongles & many other application

4) Big Talent Pool-Saankhya has more than 250 engineers full-time and in addition a lot more contract employees. More than 25 per cent of their employees have advanced degrees, masters or Ph.D. More than 80 per cent of the company’s employees of the company are in R&D,

and that will give you a sense of the strong technology flavour they have. They developed a couple of chip sets on their own. Then they had a partnership with ISRO for satellite communication for software-defined radios. In 2017, they had a very landmark partnership with

Sinclair Broadcasting Group is probably one of the largest broadcasters in the US, and Saankhya has a very deep technology partnership. Sinclair, of course, is also a large investor in Saankhya. And then they developed the chips that surround the broadcast radio applications.

5) Developing Technology for 5G- Then over the last two years that company has actually focussed a lot more on developing technology for 5G in terms of the open RAN architecture, which is the new wave where companies can become a part of the 5G ecosystem.

And they have made a lot of progress. They have signed a joint development agreement, which is at a very advanced stages of development and products and so on, with a very large ICT company in the country, and so the products are all getting there.

6) On the satellite side, they have been making more progress and have tied up with a large US satellite operator. They make 5G radio. This is a very large addressable market, more than $30 billion over the next 3-5 years.

7) 5G Broadcast Area-There is an exponential increase in video traffic on mobile phones. And, if you think about it, there is a lot of unused TV spectrums. For example, unlike in the earlier days when Prasar Bharti or Doordarshan used to beam television signals from their tower,

all that is gone away now because nobody really uses that spectrum. But that spectrum can be repurposed for 5G broadcast. That’s the new technology area, there are a lot of new standards happening around the world. It’s a niche space with around a $1 billion TAM,

and this will require next generation direct-to-mobile broadcasting solutions, converse solutions with respect to all kinds of spectrum sharing and so on. This is the second area where Saankhya has been quite strong in terms of their products and understanding of the market.

8) Satellite Communication-The third area is satellite communication. There are a lot of Low Earth Orbit (LEO) or Medium Earth Orbit (MEO) satellite constellations, which have been launched of late by a variety of companies in the western world.

Now if those satellites are going to be there up in the air, you would need stuff on the ground to take the signals, which we can loosely call as satellite IOTs because they would be the devices which would catch signals from the satellite, broadcast it locally,

and actually create all kinds of solutions. So, Saankhya has been working and their chip sets have been designed and some of the customers in this space are companies such as ISRO, Bharat Electronics, Indian Railways, and of course, another company called Ligado Networks,

which is a US-based satellite operator. And on top of the chip, they now have all the software, embedded software, system software as well as all the hardware design capabilities in terms of building board, an entire product like a radio that goes on top of a cellular tower.

9) Synergies with Saankhya Labs, with respect to Tejas- it will expands company products’ portfolio in terms of wireless, satellite and broadcast applications. Company can add a reasonably decent-sized addressable market in the areas of 5G radio active network, based on open RAN

architecture, 5G cellular broadcasts, satellite communication, or software- defined radios, etc.

10) Semiconductors with the chip design expertise that they bring. They have the capability to do in-house chip designs. The chip is physically manufactured in a fab, which is outside India because India doesn’t have fabs today.

That is why they call it fabless chips. Saankhya have Very strong capabilities in digital signal processing chips, which are required in multiple industry domains, not just telecom, but others.

11) Create competitive portfolio of products -First goal of company for the next twelve months is to create a very, very competitive portfolio of products, which they can sell to lots of customers around the world.

12) Get Large Anchor Customer-First focus for company is to get a very large anchor customer, which, if they can be successful, then the opportunities to scale up become quite possible

Big Revenues to Come After 12 Months-Saankhya has its own revenue stream which will continue. But the larger 5G revenues that are for O-RAN, or for the NSA option that we will have, it is probably fair to assume that,

given the state of rollouts in India, which is going to be our initial home market and otherwise, it is possible to say that the revenues will come in the subsequent financial year and not in the next 12 months.