Tejas Networks Ltd. · NSE:TEJASNET
Tejas Networks — Q1 FY20 Earnings Presentation
17 slides from Tejas Networks's earnings presentation, Jul 25, 2019
Slide 1: Cover letter to stock exchanges
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 July 25, 2019 Dear Sir/Madam, Re: Earnings Call
Slide 2: Tejas Networks Ltd Earnings Call Presentation Q1FY20
TEJAS NETWORKS LTD EARNINGS CALL PRESENTATION Q1FY20 © 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: Q1FY20: Key Updates
Q1FY20: Key Updates • Financial Update • Net Revenues: ₹ 156.6 cr • PBT: ₹ 10.2 cr , PAT: ₹ 5.9 cr • Working capital increased, primarily due to higher DSO • Order Book: ₹ 426 cr • India Update • Strong growth in India Private • Government business declined to 15% of total (55% in FY19); Expected to
Slide 5: Financial Update
Financial Update Q1 2020 (₹) FY 2019 (₹) Revenues (Net)1 156.6 Cr (YoY -32.5%) 876.7 Cr (YoY 18.5%) EBIT 6.6 Cr (YoY -85.4%) 130.3 Cr (YoY 42.3%) PBT 10.2 Cr (YoY -80.2%) 150.0 Cr (YoY 41.5%) PAT 5.9 Cr (YoY -87.0%) 147.2 Cr (YoY 38.2%) EPS 0.64 (YoY -87.2%) 16.13 (YoY 30.0%) 1. The Revenues (Net) a
Slide 6: Key Financial Indicators
Key Financial Indicators Amount in ₹ crore • Our working capital increased by ₹ 144 cr (77 days), on Particulars Q4 19 Q1 20 Variance account of higher DSO and higher inventory. We expect to Cash flow from 23 (122) (145) reduce our working capital levels by end of Q2. Operations for the period • DSO
Slide 7: Our Medium-term Strategy
Our Medium-term Strategy Leverage incumbency in India to benefit from pent-up demand 1 for broadband and data; increase depth in India-private accounts so as to reduce dependence on lumpy, India-Govt business Increase international sales in Africa, S. East Asia and America, 2 to reach 50% of overall
Slide 8: Macro trends driving Data Growth and our Business
Macro trends driving Data Growth and our Business 2022 Total Traffic Internet of Things VPN VOIP 4.8 Compliance Driven Corporate Back-ups ZB/Yr Cloud Services On-Demand HD Video Social Networking Video and Mobile Web 1.5 ZB/yr 2017 Total Traffic Source: Cisco VNI Forecast, 2017-2022 © Tejas Networks
Slide 9: Business Drivers - Data demand continues to grow
Business Drivers- Data demand continues to grow FIXED BROADBAND 4G, 5G & IOT CLOUD, DATA CENTER Multi-gigabit Access on Network Densification and Demand for Massively Optical Fiber (FTTX) and Fiberization driving growth Scalable DWDM Networks Broadband Wireless in Metro Networks with Multi-terabit S
Slide 10: Revenue By Segments
Revenue By Segments India-Pvt + International contributed to 85% of total Focus is to International expected to show strong growth during the FY increase run-rate BSNL/BBNL business will be lumpy- exp. to pick up during 2H business © Tejas Networks Limited 2019. All rights reserved. 9
Slide 11: Sales Update: India
Sales Update: India Government- Government- Private Critical Infra. Telco & USO Telcos making aggressive Dominant market share in this USOF funds to be deployed investments in optical capex sector with a strong track record for rapidly completing Upgrading their networks to Strong product
Slide 12: Sales Update: International
Sales Update: International South/SE Asia Africa/Middle East USA/Mexico Emerging as a credible Strong customer references in In USA, we expect new alternative for customers looking the region customer wins and strong to diversify their suppliers Local presence in South Africa, revenue growth
Slide 13: Technology Focus on Access/Aggregation/Metro
Technology Focus on Access/Aggregation/Metro Optical/Ethernet Aggregation Fixed Wireless Access (USD $Billion) (USD $Billion) 6% 15% 5 3.2 4 1.8 2019 2023 2019 2023 Fiber-to-the-Home (GPON) Access & Metro DWDM (USD $Billion) (USD $Billion) 4.5% 7.5% 7.6 11.4 Source: Ovum and Company Estimates 2018 6
Slide 14: 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 15: Network Applications: Where we win
Network Applications: Where we win MOBILE BACKHAUL WHOLESALE SERVICES ENTERPRISE SERVICES Converged Backhaul for OTN/PTN Cross-connects Guaranteed QoS Support 2G/3G to 4G/5G Proven 100G/100G+ Alien for Low-latency Services 5G-ready fronthaul Wave Solution KEY DIFFERENTIATORS BROADBAND ACCESS UTILITI
Slide 16: Key Takeaways
Key Takeaways • Fundamental drivers for our business continue to be strong- data growth, broadband, 5G, cloud services and fiberization are driving optical investments • Our focus is to increase our run-rate customer business (India Private and International) so as to reduce dependence on the lumpy,
Slide 17: Thank you!
Thank you! Contact Us: ir@tejasnetworks.com Contact - +91(80)41794600 © Tejas Networks Limited 2019. All rights reserved.