Tejas Networks Ltd. · NSE:TEJASNET
Tejas Networks — Investor Presentation (2020)
27 slides from Tejas Networks's investor presentation, 2020
Slide 1: Investor Presentation
INVESTOR PRESENTATION © Tejas Networks Limited 2020. All rights reserved.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements due to risks or uncert
Slide 3: Tejas Networks: A Snapshot
Tejas Networks: A Snapshot • India’s leading R&D-driven telecom product company • Founded in 2000; Headquartered in Bangalore • #1 in Optical Aggregation in India; Top-10 globally (Source: Ovum) • Cumulative Revenues of over US $1 Billion • Customers in 75+ countries; 500,000+ units shipped worldwid
Slide 4: Key Achievements during our Year Journey
Key Achievements during our 20 Year Journey Cumulative Deployed in 75+ Global Top-10 in Shipped > 500,000 Revenues > $1 Billion Countries Optical Aggregation Equipment to > 500 Exports > $400 15 Global Offices #1 in India Networks Million Design and Make-in-India For the World First Deep-tech Startu
Slide 5: Strong Foundation of Technology and R&D
Strong Foundation of Technology and R&D 5G-ready Home/Office Metro/Core Enterprise Critical Applications Networks Broadband Transport Services Infrastructure Wireline Wireless Management Software Product Segments Optical Transport, FTTX 4G/5G/FWA NMS Deep-Technology PTN OTN DWDM xPON LTE Expertise S
Slide 6: Our Sustainable Competitive Advantage
Our Sustainable Competitive Advantage Software-defined Future Ready Hardware ™ Products Programmable silicon eases Support multiple technology feature upgrades, generations from same shelf incorporation of new (2G/3G to 4G/5G) standards and protocols Ultra Converged Innovative Broadband Business Mod
Slide 7: The Age of Digital Living, Working and Learning
The Age of Digital Living, Working and Learning Work-from-Home Healthcare Remote working and greater Use of telemedicine and smart use of digital modes of health solutions; high-speed interaction for business connectivity to hospitals Study@Home Automated Manufacturing Online learning using both Acc
Slide 8: Covid-19: Accelerating Digital Adoption
Covid-19: Accelerating Digital Adoption 10x +40% +41% +213% Increase in Video Growth in Upload Growth in Video Growth in Gaming Conferencing Usage Traffic Traffic Traffic Source: Network World, Verizon, Colt (Covid-19 lockdown data in March/April 2020) 244% Covid-19 has catalyzed sharp growth in G
Slide 9: Driving Spend in Optical & Broadband Equipment
…Driving Spend in Optical & Broadband Equipment Optical Networking Equipment Fiber-to-the-Home (GPON) Fixed Wireless Access (4G/5G) (USD Billions) (USD Billions) (USD Billions) 5% 4.5% 70% 18.7 7.6 2.0 15.6 6.1 0.2 2019 2024 2019 2024 2019 2024 © Tejas Networks Limited 2020. All rights reserved. 9
Slide 10: Award Winning Products and Solutions
Award Winning Products and Solutions Home & Office Metro Capacity Broadband Expansion Deliver high-speed broadband Cost-efficient solutions to upgrade connectivity on optical fiber, fixed bandwidth in Metro and Core wireless and copper cables to networks residences, businesses & Products: DWDM, OTN
Slide 11: Our Growth Strategy
Our Growth Strategy 1 Focus on International Business: >50% over revenue in Medium Term • Increase sales investments in Africa, Mid- east, SE Asia, North America • Benefit from new geo-political situation, as customers diversify their supplier base 2 3 Benefit from Data and Product Differentiation t
Slide 12: Focus on growing International Business
1. Focus on growing International Business Right-sized and differentiated products for “India-like” emerging markets Customers actively want to reduce their supply chain risk and diversify their International TAM for FY21: vendor base in emerging geo-political ~$8.4 Billion environment Have ma
Slide 13: Benefit from Data and Broadband Growth in India
2. Benefit from Data and Broadband Growth in India Fiberized Cell Mobile Broadband Fixed Broadband Towers (%age) Subs (%age) Subs (%age) Strong indigenization push through 82% “Atmanirbhar Bharat” Incumbent supplier to all leading India TAM for FY21: 60% 58% private telcos, PSUs, ISPs 40% Stro
Slide 14: Expanding Product Portfolio with Innovation & R&D
3. Expanding Product Portfolio with Innovation & R&D Broadband Access Optical Transmission Metro Core & Long-haul (xPON, LTE, Ethernet) (PTN & OTN) (DWDM & OTN) Full ownership and control of all software, hardware, design and IPR as well as 100% local manufacturing Cumulative R&D investments of
Slide 15: Significant Industry Experience
Strong Professionally Managed team with Significant Industry Experience Management Board of Directors Sanjay Nayak Kumar N. Sivarajan Balakrishnan V. Chief Executive Officer and Managing Director Chief Technology Officer Non-Executive, Independent Director and Ex-Managing Director at Synopsys Associ
Slide 16: Global Recognition for Innovation, R&D & Business
Global Recognition for Innovation, R&D & Business 2018-2020 FT1000 high-growth list for Asia-Pacific 2016-2017 Best Equipment Supply President of India award for successful Aegis Graham Bell award in “Best Exporter” award in Gold commercialization of indigenous Partner by GoI “Digital India Initiati
Slide 17: Q1FY21 Update
Q1FY21 UPDATE © Tejas Networks Limited 2020. All rights reserved. 17
Slide 18: Q1FY21: Key Updates
Q1FY21: Key Updates • Financial Update • Q1 21 Net Revenues: Rs. 77.4 Cr (YoY decrease of 50.6%) • Q1 21 PAT: (Rs. 9.8) Cr; Operating Cash flow: 10 Cr • Debt-free company. Cash and cash equivalents of Rs. 272 Cr • Good order inflow of Rs. 188 Cr. Order in hand of Rs. 593 Cr (best in last 8 quarters)
Slide 19: Financial Update
Financial Update Amount in Rs. crore except EPS Q1 2021 LTM FY 2020 Revenues (Net)1 77.4 (YoY -50.6%) 300.6(YoY -62.5%) 379.8 (YoY -56.7%) EBIT -13.2 (YoY -299.4%) -184.3(YoY -301.1%) -164.5 (YoY -226.2%) PBT2 -9.8 (YoY -195.6%) -158.5(YoY -246.0%) -138.6 (YoY -192.4%) PAT -9.8 (YoY -266.8%) -252.7(
Slide 20: Key Financial Indicators
Key Financial Indicators Amount in Rs. Cr Particulars Q4-FY20 Q1-FY21 • Inventory decreased by 14 Cr to Rs. 238 Cr • Expect to consume a large part of the existing inventory Cash flow from (2) 10 over the next few quarters, based on orders in hand Operations • Trade receivables reduced to Rs. 436 Cr
Slide 21: Update on COVID-19 impact on our business
Update on COVID-19 impact on our business • Business Continuity: short-term challenges expected to continue • We have been providing 24x7 support to all our customers and ensured them to maintain network uptime of >99.999% • There were some impact on operations and revenues due to lockdowns and trav
Slide 22: Revenue By Segments
Revenue By Segments BSNL/BBNL Critical Infrastructure 0% 14% FY20 BSNL/BBNL Q1 21 International - 2% India-Govt India-Govt Direct 15% 14% 30% Critical Infrastructure 13% International - OEM India-Pvt 3% 33% International - Direct 52% India-Pvt International - 52% OEM 1% India-Pvt + International con
Slide 23: India Business Update
India Business Update • Government Accounts • BSNL/Bharatnet • Govt. has announced plans to increase Bharatnet coverage from 125,000 to 250,000 villages by March ’21 and provide 500,000 broadband connections to villages • Govt. has approved a financial package for BSNL, under which capex is provided
Slide 24: International Business Update
International Business Update Geo-political issues motivating customers to de-risk and diversify their supplier base o We expect to increase our wallet share from customers where we have incumbency • Africa and Middle East • Increased broadband penetration and build-outs for web-scale companies is
Slide 25: Well positioned for Atmanirbhar Bharat in telecom
Well positioned for “Atmanirbhar Bharat” in telecom • Sustained R&D investments have increased our addressable market End-to-end Optical transmission products o Covers entire range from Megabits to Terabits on latest technologies- DWDM, Packet Transport, Next-gen SDH, OTN o Software-differentiated
Slide 26: Key Takeaways
Key Takeaways • Data growth trend continues to be a favorable driver for our business • With Work-From-Home, Learn-From-Home, Video-on-demand and other applications becoming a part of the new normal, data traffic on networks is surging • Telcos are increasing investments in home broadband and in upg
Slide 27: Thank you!
Thank you! Contact Us: ir@tejasnetworks.com Contact - +91(80)41794600 © Tejas Networks Limited 2019. All rights reserved.