Tejas Networks falls by 8% as their net loss increases due to rising expenses

Tejas Networks' stock fell 8% on July 24 as the company's net loss for the April-June quarter increased sequentially.

In comparison to the previous quarter's loss of Rs 11.5 crore, the firm reported a net loss of Rs 26.3 crore for the months of April through June. A year ago, the firm had a Rs. 6.6 crore loss.

Tejas Networks shares were down 4.8 percent, trading at Rs 804.90 at 1:06 p.m. on the National Stock Exchange. Trading volumes were also strong as 19 lakh shares were exchanged on the exchanges, above the 16 lakh share daily average traded during the previous month.

Revenue for the firm decreased by 37.2% sequentially, from Rs 299.3 crore in the previous quarter to around Rs 188 crore. However, the topline increased by nearly 46% year on year.

The wireless telecom and data networking equipment company’s EBITDA loss also increased during the June quarter, rising to approximately Rs 47 crore from barely Rs 8 crore at the end of March and Rs 7.3 crore a year earlier.

Increased losses can be attributed to several factors, such as Rs 31.3 crore charge for employee stock options (ESOP), ongoing investments in research and development (R&D), and increased component costs for expedite fees and spot buys, all of which are intended to guarantee the timely delivery of crucial customer shipments.

During the previous quarter, Tejas successfully commissioned the 200-site BSNL 4G trial network in Punjab. 

Source: Media Reports