Tejas Networks Ltd. · NSE:TEJASNET
Tejas Networks — Q2 FY2020 Earnings Presentation
16 slides from Tejas Networks's earnings presentation, Oct 23, 2019
Slide 1: Exchange cover letter for earnings call presentation
The Secretary The Secretary National Stock Exchange of India Ltd BSE Limited Exchange Plaza, C/1, Block G, P J Towers, Dalal Street, Fort, Bandra Kurla Complex, Bandra (East) Mumbai – 400 001 Mumbai – 400 051 BSE Scrip Code: 540595 NSESymbol: TEJASNET October 23, 2019 Dear Sir/Madam, Re: Earnings Ca
Slide 2: Earnings Call Presentation Q2FY20
TEJAS NETWORKS LTD EARNINGS CALL PRESENTATION Q2FY20 Tejas Networks Limited 2019. All rights reserved.
Slide 3: 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 4: Q2FY20: Key Updates
Q2FY20: Key Updates • Financial Update • Net Revenues ` 85 cr • PBT: (` 7.5) cr , PAT: (` 4.4) cr; shortfall in revenues resulted in loss • Net cash position improved by ` 59 cr to ` 290 cr, due to improved collections (including some amount from BSNL) • Order book: ` 429 cr • Sales Update • Governm
Slide 5: Revenue By Segments
Revenue By Segments BSNL/BBNL Critical Infrastructure 6% 8% Critical BSNL/BBNL Infrastructure 36% 19% In 1H, (India-Pvt + International) contributed to 86% of total (YoY growth of 28% for 1H). India Govt reduced by 88% in 1H Focus is to increase run-rate International expected to show strong growth
Slide 6: Financial Update
Financial Update Amount in ` crore except EPS Q2-FY20 H1-FY20 LTM FY19 Revenues (Net)1 85.1 (YoY -58.0%) 241.7 (YoY -44.4%) 683.7 (YoY -10.0%) 876.7 EBIT -11.9 (YoY -140%) -5.2 (YoY -107.0%) 50.2 (YoY -54.1%) 130.3 PBT -7.5 (YoY -120.5%) 2.7 (YoY -96.9%) 64.7 (YoY -51.8%) 150.0 PAT -4.4 (YoY -113.1%
Slide 7: Key Financial Indicators
Key Financial Indicators • Working capital decreased by ` 78 cr, on account of higher Amount in ` crore Particulars Q1-FY20 Q2-FY20 collections during the quarter. We further expect to reduce our working capital levels by end of 2H. Cash flow from Operations (122) 96 • DSO reduced to 277 days from 2
Slide 8: Our Medium-term Strategy
Our Medium-term Strategy Increase international sales in Africa, S. East Asia and America, 1 to reach 50% of overall revenues Leverage incumbency in India increase depth in India-private 2 accounts. Selectively work on high-quality Government business, leveraging Make-in-India policy Maintain invest
Slide 9: International Update
International Update • Update from our Target Geographies • South East Asia, South Asia • Strong pipeline in Malaysia, Vietnam, Bangladesh, Sri Lanka; New win in Hong-Kong • Africa, Middle East • Splitting of region into 4 offices is working well, with strong deal funnel in each region • Techno-comm
Slide 10: India Update
India Update • Government Accounts • BSNL/MTNL capex investments on hold, till their financial situation is revived by Government • New Bharatnet projects (centrally controlled) are currently on hold. • We are well placed in the 3 state-led fiber projects. We have won the order for Kerala (from BEL)
Slide 11: End-to-End Product Portfolio
End-to-End Product Portfolio Terabits Multi-terabit Disaggregated PTN/OTN Products CORE NMS, SDN CONTROLLER TJ1600S TJ1600I TJ1600S Compact and Scalable Metro WDM/OTN Products TJ1600-2 Nx100G/200G/400G/600G METRO TJ1600-6 TJ1600-11 TejNMS Ultra-converged Access/Edge Products GPON TJ1400-7 LTE ACCESS
Slide 12: Tejas TJ1400: Innovation for Network Access/Edge
Tejas TJ1400: Innovation for Network Access/Edge Fiber Fixed Enterprise Wireless Broadband Data Services Access Access GPON/ Carrier LTE XGS-PON Ethernet (4G/5G) TJ1400 World’s 1st Ultra Converged Nx10G/100G Award Winning Product in Packet USA, Europe, Asia Broadband Access Platform Optical Tejas Ne
Slide 13: Tejas TJ1600S/I: Innovation for Metro and Core
Tejas TJ1600S/I: Innovation for Metro and Core 0.8T 48T SWITCHING CAPACITY World’s Largest TJ1600S Dis-aggregated Packet-OTN Switch Scalable to 48 Tb TJ1600I #1 TJ1600I #12 Tejas Networks Limited 2019. All rights reserved.
Slide 14: TJ1600S/I: Path-breaking Innovation
TJ1600S/I: Path-breaking Innovation APPLICATIONS BENEFITS • High-capacity Metro and Core • “Pay as you Grow”. 5G Ready • Hyperscale Datacenter Interconnect • 30-70% Opex Savings in Shelf • Multi-terabit National Backbones Space and Power • Submarine Bandwidth Distribution • Rapid Introduction of new
Slide 15: Key Takeaways
Key Takeaways • While fundamental growth drivers continue to be strong, our business is in a transition phase. • We are reducing dependence on the lumpy Govt. business (which declined 88% in 1H) and focusing on increasing run-rate business (India-Private + International) (which increased 28% in 1H)
Slide 16: Thank you!
Thank you! Contact Us: ir@tejasnetworks.com Contact - +91(80)41794600 Tejas Networks Limited 2019. All rights reserved.