Tejas Networks Ltd. · NSE:TEJASNET
Tejas Networks — Q3 FY2018 Earnings Presentation
22 slides from Tejas Networks's earnings presentation, Jan 19, 2018
Slide 1: Cover letter to stock exchanges: Earnings Call Presentation Q3 FY2018
> TEJAS’ NETWORKS January 19, 2018 To, 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 NSE Symbol: TEJASNET Dear Sir
Slide 2: Tejas Networks Ltd. Earnings Call Presentation (Q3FY18)
Tejas Networks Ltd. Earnings Call Presentation (Q3FY18) 19th January, 2018 © Tejas Networks Copyright. All Rights Reserved. Software Enabled Transformation www.tejasnetworks.com
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: Q3 Financial Update
Q3 Financial Update Q3 2018 9M 2018 Revenues (Net)1 226.15 Cr (QoQ 5.2%; YoY -11.0%) 641.16 Cr (YoY 13.5%) EBITDA 50.74 Cr (QoQ 9.3%; YoY -19.1%) 142.14 Cr (YoY 22.0%) Operating Profit 35.45 Cr (QoQ 21.7%; YoY -29.0%) 92.70 Cr (YoY 22.1%) PAT 30.14 Cr (QoQ 12.2%; YoY 158.5%) 77.45 Cr (YoY 199.2%) PA
Slide 5: Q3 Corporate Update
Q3 Corporate Update Team update Employee Strength grew to 697 R&D (20% increase in headcount over 9M) Sales & Marketing (19% increase in headcount over 9M) Awards Won “Best Performing Equipment Supply Partner” award from Government of India for BharatNet Project Phase-1 Top Electronics Hardware Expo
Slide 6: Increased use of Data-driver for our Growth
Increased use of Data-driver for our Growth FIBER REACH X DATA CAPACITY 20%->40%->60% -> 80% 10G ->Nx10G->100G -> Nx100G Growing %age of Cell Sites getting Greater bandwidth required from fiberized each Fiber Node Tejas is focusing on high-growth Metro & Access segments Intra-city networks is where
Slide 7: Our Focus: from Access to Metro Core
Our Focus : from Access to Metro Core Devices Inside Home Tejas Access Equipment Tejas Optical Transport Equipment Home Home Devices Inside Home Fiber/GPON Fiber/GPON Cell Tower Cell Tower Wireless (LTE) (LTE) Wireless Access Access LTE/Fiber Fiber Fiber Fiber LTE or Fiber Office Office Fiber Fiber
Slide 8: Robust Growth in Global Optical Networking
Robust Growth in Global Optical Networking Global ON Forecast Broadband Access FTTx emerging as primary access technology surpassing DSL/Cable 100G/100G+ Ramping Up Volume of 100G in Metro Global Optical Capex growing on the Optical to exceed Backbone by 2018 back of growth in emerging markets 100G/
Slide 9: India: Optical Spend on the Upswing due to Data Growth
India: Optical Spend on the Upswing due to Data Growth ~11% CAGR from 2017-2022 ~Rs 5000 crore TAM in Bharatnet Phase-2 Make-in-India Focus Continues 1 Bn broadband users by 2021 Source: Ovum 8 © Tejas Networks Copyright. All Rights Reserved. Software Enabled Transformation
Slide 10: Our Differentiated Products- Software Defined Hardware
Our Differentiated Products- Software Defined Hardware ™ Incorporates Key Multi-gen Support Seamless Network Cost Effective Requirements of (2G to 3G to 4G) Transformation Emerging Markets Software Upgrades Programmable Advanced Software Caters to SDN and Silicon Chips with and Hardware NFV Enabled,
Slide 11: 5G: Increases Demand for Optical Transmission
5G : Increases Demand for Optical Transmission “As data rates need to be higher and more Higher-speed ports and consistent, it will be crucial for operators to larger capacity use fibre as their main backhaul technology,..”, BMI Research Optical Fiber-based Mobile Fronthaul opportunity in addition t
Slide 12: Tejas: 5G-ready Products for Optical Transport
Tejas: 5G-ready Products for Optical Transport Mobile fronthaul moves optical fiber closer to the end-user for enhanced mobile broadband services Even higher bandwidths required 100G 1Terabit 10G Radio Optical Fronthaul Optical Access Optical Aggregation Access Backhaul Backhaul • Split radio archit
Slide 13: Transport Network Modernization
Transport Network Modernization Rapid surge in data traffic incentivizes operators to upgrade their networks using modern-day packet transport technologies However, legacy TDM services continue to linger in matured as well as emerging markets Fixed-line Voice and 2G Mobile Voice Enterprise Leased Li
Slide 14: Enabling Technology: Circuit Emulation
Enabling Technology: Circuit Emulation PACKET TRANSPORT NETWORK TDM Interface TDM Interface CIRCUIT EMULATION TUNNEL E1/DS1 STM-1/OC-3 PBX Media Gateway Circuit Emulation enables conversion of TDM traffic into packets which can then be tunnelled through the packet/data network and regenerated as TDM
Slide 15: Tejas: Leader in High-capacity Circuit Emulation
Tejas: Leader in High-capacity Circuit Emulation UTILITY TDM PACKET TDM Low-speed TDM + 2.5G/10G TDM IP/Ethernet CPE TELCO MPLS-based METRO CORE Packet Transport Network (PTN) 2.5G/10G TDM Low-speed TDM + IP/Ethernet CPE Core PTN Equipment extracts ENTERPRISE Low-speed TDM + emulated circuits and ha
Slide 16: Financials: 9M'18 vs 9M'17
Financials: 9M’18 vs 9M’17 % of % of ` cr Rev ` cr Rev Revenue (net of taxes and component sales) Revenue (net of taxes) • Net revenues grew by 13.5% on YoY basis • The reported revenue for Q3 18 are net of GST, however revenues of all periods earlier to Q2 18 are inclusive of excise duty and are no
Slide 17: Q3 18 vs Q2 18
Q3 18 vs Q2 18 % of % of ` cr Rev Rev Revenue (net of taxes and component sales) Revenue (net of taxes) • Net revenue grew by 5.2% on sequential QoQ basis • Operating expenses (inclusive of depreciation) grew by 14.1% on sequential basis – due to increased investment in R&D and Sales • as a % of net
Slide 18: Key Financial Indicators
Key Financial Indicators Amount in ` crore Particulars 9M 17 9M 18 Variance Q3 FY17 Q3 FY 18 Variance 1 Revenue from operations 660 665 1% 289 230 -20% Revenue from operations (Net) 2 565 641 14% 254 226 -11% EBIDTA (before exceptional item) 116 142 22% 63 51 -19% Operating Profit 76 93 22% 50 35 -2
Slide 19: Strategic Priorities & Key Growth Drivers
Strategic Priorities & Key Growth Drivers 1 2 INDIA: GLOBAL: USE INCUMBENCY INCREASE SALES SALES TO BENEFIT FROM Continue INVESTMENTS IN PENT-UP DEMAND EMERGING INVESTMENTS Investments FOR DATA High in & GOVT. Growth MARKETS (AFRICA, SPENDING Optical Networking SE-ASIA) & USA CONTINUE TO Segments Gr
Slide 20: Summary
Summary Data and 4G is driving demand for optical equipment; 5G will accelerate this growth Higher capacities, more base-stations, optical front-haul in additional to back-haul Intra-city/metro/access networks will see faster growth; fits in with our focus on optical aggregation and access Sustained
Slide 21: For further information
For further information Investor Relations ir@tejasnetworks.com Santosh Kesavan E-mail: skesavan@tejasnetworks.com Phone: 91-80-41794600 Compliance & Secretarial Corporate@tejasnetworks.com G. V. Krishnakanth: Company Secretary E-mail: krishnakanthv@tejasnetworks.com Phone: 91-80-41794600 © Tejas Ne
Slide 22: Thank you
Thank you © Tejas Networks Copyright. All Rights Reserved. Software Enabled Transformation www.tejasnetworks.com