Thread by @LnprCapital

Tejas Networks Analysis!!
#TejasNetworks

A detailed thread 🪡🧵
#StockMarket #Investing

About -

Tejas Networks got founded in 2000 by Sanjay Nayak is an optical, broadband & data networking products company based in 🇮🇳, designs develops & sells its products to telecom service providers, internet service providers, utilities, security & Govt entities in 75 countries

Global Presence -

Tejas Network earns 60% of it's revenue from India. International Revenues accounts for 40% of total revenues of the company.

Has geographical presence in USA, Mexico, Brazil, South Africa, Nigeria, Kenya, UAE, Bangladesh, Philippines, Singapore and Malaysia.

Financial Summary -

Revenue at 220 Cr Vs 173 Cr (YoY); 126 Cr (QoQ)

EBITDA 21.54 Cr Vs 18.34 Cr (YoY); Loss -7.32 Cr (QoQ)

PAT 1.07 Cr Vs 3.66 Cr (YoY); Loss -6.64 Cr (QoQ)

Cash & Equivalents at: Rs 1,402 Cr
Order book at end of Q2: Rs 1,455 Cr (all-time high)

Company’s revenue is derived from three segments:
(A) International business (contributes 36% to overall revenue),

(B) Indian private business (47%), &

(C) Indian Government business (17%) as on Q2 FY 22.

Product Offerings & Breakup -

Tejas Networks earns 87.1% from Optical & Data Networking products and 12.9% from Rendering of Services

🔹Optical transmission equipment
🔹Broadband access equipment
🔹Ethernet/IP switch
🔹Network management software
🔹Lifecycle management services

Tejas got a complete range of next-gen wireless, access, aggregation, metro & core switching products for realizing end-to-end optical networks with a universal network management system.

Benefit from Data & Broadband Growth in 🇮🇳 -

Over the last two decades, India has transitioned from a voice-centric telecom market to the world’s largest carrier of mobile data traffic. With a huge
pent-up demand for fiberization & home broadband,

today India is one of the fastest growing optical equipment markets in the world.

Well positioned to play a key role for
Atmanirbhar Bharat -

• Preference to Make in India (PMI) : All telecom products being
mfg & sold by
Tejas are included in the PMI list.

• PLI Scheme : Tejas products approved
under PLI scheme for Telecom & Networking.

Opportunity to leverage synergies with Tata Group -

Both Tata Group & Tejas foresee a large opportunity in telecom sector in 🇮🇳 & international markets & are planning to work together to benefit from the growth opportunity from new investment in fiber-based broadband rollouts.

Tejas Success Stories Across the Globe -

Innovative Business Model -

• India-based
R&D :
4X R&D productivity compared to global peers by using talented yet low-cost workforce based in 🇮🇳, use of mass-
market FPGA devices with ownership of silicon IPR.

• Asset-light
Manufacturing :
Outsourced
manufacturing to global
electronic contract manufacturers (EMS)
enabling us to scale-up manufacturing,
while making only incremental investments.

• Low Operations Cost :
SG&A and other costs are half of our global peers creating operating efficiency. Our gross margins are competitive despite lower economies of scale.

Risks -

• Competition from international players.

• Global semiconductor supply chain challenges.

Aquisition of Saankhya Labs -

The acquisition is slated to boost Tejas’s wireless offerings by adding 5G ORAN, 5G cellular broadcast & satellite communication products to its product portfolio besides adding to its customer base in India and global markets.

Conclusion -

The future of Tejas Networks looks positive on the capex by communications companies in India and international regions to feed the data hungry markets.

Tejas Networks as a Tata Group company, with a widening product portfolio & an expanding array of opportunities, the company’s next phase of growth will be both exciting & rewarding.

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