Tejas Networks Ltd. · NSE:TEJASNET
Tejas Networks — Q4 FY2019 Earnings Presentation
22 slides from Tejas Networks's earnings presentation, Apr 23, 2019
Slide 1: Letter to stock exchanges: Earnings Call Presentation Q4 FY2019
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 April 23, 2019 Dear Sir/Madam, Ref: Earnings Ca
Slide 2: © Tejas Networks Limited 2019. All rights reserved.
© 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: FY19: Key Highlights
FY19: Key Highlights • Healthy Financial Performance • Y-o-Y net revenues grew by 18.5% and PBT by 41.5% • Non-government business (India Pvt + International) grew by 33% YoY • Opening backlog for FY20 is Rs. 418 Cr and in addition we have tender wins in India for Rs 300+ Cr, which are expected to c
Slide 5: Financial Update
Financial Update Q4 2019 FY 2019 Revenues (Net)1 265.8 Cr (YoY 169.3%) 876.7 Cr (YoY 18.5%) EBIT2 35.3 Cr (NA) 130.3 Cr (YoY 42.3%) PBT 37.1 Cr (YoY 399.7%) 150.0 Cr (YoY 41.5%) PAT 35.9 Cr (YoY 23.5%) 147.2 Cr (YoY 38.2%) 1. The reported revenue for FY 18 were inclusive of excise duty (for Q1). Hen
Slide 6: Key Financial Indicators
Key Financial Indicators Amount in ` crore • For FY19, we saw revenue growth across India as well as Particulars FY 18 FY 19 Variance International, while expanding our profitability 1 Revenue from operations 767 900 17% 2 • Our operating profit for FY19 improved by 240 bps, due to higher Revenue fr
Slide 7: Revenue By Segments
Revenue By Segments Critical Critical BSNL/BBNL BSNL/BBNL Infrastructure Infrastructure 36% 47% 19% 14% Increased International Direct YoY growth 70% FY 19 Continued growth in India Private YoY growth 28% Net Revenue grew by 18.5% Reduced dependency on India Govt. YoY growth 7% © Tejas Networks Limi
Slide 8: Financial Trends
Financial Trends ` Cr ` Cr 3 Yr 3 Yr CAGR CAGR 12.5% 19.7% ` Cr ` Cr 3 Yr 3 Yr CAGR CAGR 73.8% 72.7% © Tejas Networks Limited 2019. All rights reserved. 7
Slide 9: Financial Trends (Cont'd)
Financial Trends (Cont’d) Operating Expenses (Net) R&D expenses S&M expenses 200 120 100 150 90 75 100 60 50 50 30 25 - - - FY 16 FY17 FY18 FY19 FY 16 FY17 FY18 FY19 FY 16 FY17 FY18 FY19 Capitalised Net expense S&M expenses Operating expenses Networth Cash and Cash equivalents* Working capital days*
Slide 10: Data Growth continues to drive our Business
Data Growth continues to drive our Business FIXED BROADBAND 4G, 5G & IOT CLOUD, DATA CENTER Multi-gigabit Access on Network Densification and Demand for Massively Optical Fiber (FTTX) and Fiberization is driving Scalable DWDM Networks Broadband Wireless growth in Metro Networks with Multi-terabit Sw
Slide 11: Sustained R&D Investments leading to higher Total Addressable Market (TAM)
Sustained R&D Investments leading to higher Total Addressable Market (TAM) Fixed Wireless Access ~2X (4G/5G) Additional Multi-terabit PTN/OTN TAM: Switches for Critical ~$9 Bn Infrastructure Fiber-to-the-X (GPON) Broadband Access, Optical Aggregation Optical & Aggregation Metro WDM Original & TAM: M
Slide 12: Medium-term Strategy
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 rev
Slide 13: India: Data and Broadband Growth to Continue
India: Data and Broadband Growth to Continue 20M->100M (fixed broadband users) by 2022 400M->1.2B $1B (mobile broadband subs) Optical by 2022 100% Networking (YoY data Market growth) (growing to $1.2B by 20%->60% next 3-5 years 2022) (cell towers fiberized) by 2022 1Lac -> 6Lac (broadband in village
Slide 14: Sales Update: India Government
Sales Update: India Government Opportunity Update Government investments in broadband networks India Govt. grew by 7%, but as a %age of (rural connectivity, smart cities etc.) to continue both total revenue, it came down to 55% (FY18 it at center and state levels for next few years was 61%) Cr
Slide 15: Sales Update: India Private
Sales Update: India Private Opportunity Update Positive capex cycle, especially for optical India Private business grew by 28% YoY transmission, following operator consolidation Selected by a large Tier-1 for a Metro Broadband/FTTx expected to be key growth driver capacity expansion project;
Slide 16: Focus on International Expansion
Focus on International Expansion $4.7b TAM $1.1b TAM $1.9b Americas TAM Africa & $1.5b TAM Middle East South East Asia India Total Addressable Market (TAM) of ~$9 billion © Tejas Networks Limited 2019. All rights reserved. 15
Slide 17: Sales Update: South Asia and South East Asia
Sales Update: South Asia and South East Asia Opportunity Update Targeted countries: Strong YoY revenue growth in FY19 Bangladesh, Sri Lanka, Bhutan, Malaysia, Vietnam, Increased regional sales investment by 16% Cambodia, Indonesia, Philippines, Myanmar, Mongolia YoY, including senior sales l
Slide 18: Sales Update: Africa and Middle East
Sales Update: Africa and Middle East Opportunity Update Targeting all of Africa and mid-east with focus on: FY19 revenues stayed almost flat YoY, since South Africa, Nigeria, Kenya, Burundi, Uganda, few deals got pushed out Rwanda, Algeria, Ghana, Morocco, Oman, Egypt etc. We Increased sales
Slide 19: Sales Update: America
Sales Update: America Opportunity Update Targeting mainly North America region America-direct business grew well, driven USA- Tier 2 and Tier-3 operators and cable companies primarily by success in Mexico. OEM business Mexico- all operators has shrunk and is unlikely to grow in future Tota
Slide 20: 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 21: Key Takeaways
Key Takeaways • Data growth trend continues to be a favorable driver for our business in India and International • Strong growth in data usage, broadband, cloud, data center and fiberization are driving optical investments • FY19 was a healthy year of growth with expansion in profitability • Revenue
Slide 22: Thank you!
Thank you! Contact Us: ir@tejasnetworks.com Contact - +91(80)41794600 © Tejas Networks Limited 2019. All rights reserved.