Tejas Networks Ltd. · NSE:TEJASNET
Tejas Networks — Q2 FY2019 Earnings Presentation
15 slides from Tejas Networks's earnings presentation, Oct 24, 2018
Slide 1: Tejas Networks Ltd. Earnings Call Presentation (Q2 FY19)
Tejas Networks Ltd. Earnings Call Presentation (Q2 FY19) 24th Oct, 2018 Copyright © Tejas Networks Limited 2018. All rights reserved. Software Enabled Transformation www.tejasnetworks.com
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: Q2 Financial Update
Q2 Financial Update Q2 2019 H1 2019 Revenues (Net)1 202.7 Cr (YoY -5.7%) 434.7 Cr (YoY 4.8%) EBITDA 44.6 Cr (YoY -3.8%) 107.1 Cr (YoY 17.2%) Operating Profit 29.6 Cr (YoY 1.6%) 74.9 Cr (YoY 30.8%) PBT 36.4 Cr (YoY 6.9%) 88.0 Cr (YoY 47.1%) PAT 33.5 Cr (YoY 24.6%) 78.5 Cr (YoY 65.9%) 1. The reported
Slide 4: Financials: H1'19 vs H1'18
Financials: H1’19 vs H1’18 % of % of Rev ` cr ` cr % of Rev ` cr Rev Revenue (net of taxes and component sales) Revenue (net of taxes) • Net revenues grew by 4.8% on YoY basis • The reported revenue for H1 19 are net of GST, and revenues for H1 18 are inclusive of excise duty and are not comparable.
Slide 5: Key Financial Indicators
Key Financial Indicators Amount in ` crore Particulars H1 18 H1 19 Variance Revenue from operations 1 435 443 2% • Increase in Operating profit and PAT was primarily on Revenue from operations (Net) 2 415 435 5% account of increase in Gross margin EBIDTA (before exceptional item) 91 107 17% • The wo
Slide 6: Corporate Update
Corporate Update Team 754 employees, 52% in R&D (52 net additions in Q2) Hired Chief Human Resource Officer – Abhijat Mitra (most recently with McKinsey & Co.) Awards Shortlisted for Broadband World Forum award for “Achievement in Network Convergence” category Patents and Standards 349 patents filed
Slide 7: Positive Policy Developments in India
Positive Policy Developments in India Public Procurement (Preference to Make-in-India) Order TRAI Report on Promoting Local Telecom Equipment 2017 Manufacturing • Gazetted on August 29, 2018 • Released on August 3, 2018 • Local procurement mandated for procurement by all • Highest focus for Designed
Slide 8: Massive Growth in Data Usage, Mobile and IoT...
Massive Growth in Data Usage, Mobile and IoT... 16 Billion Connected Devices App-based VoIP traffic to by 2022 (+105% Growth) double by 2022 Exponential Data Usage Device to touch Growth New Highs Sub-$100 Smartphones ~30% App-based Video traffic to of phone market in 2022 cross one Zettabyte by 202
Slide 9: ...Driving Optical Access, Backhaul and Metro Capex
…Driving Optical Access, Backhaul and Metro Capex Globally, a larger portion of backhaul spending will be on optical fiber links for 4G/5G ~60% backhaul spend will be on optical equipment (rather than on microwave) by 2022 Optical fiber is edging closer to the end- users with FTTx/xPON Cumulative sp
Slide 10: Target Applications
Target Applications Next-gen Mobile Bandwidth Backhaul- 4G/5G Services Transport of cellular traffic from base Bandwidth wholesaling to telcos or stations to switching centers enterprises; Data centers Technologies: PTN, OTN, CPRI/eCPRI Technologies: 100G/200G DWDM, Alien Wavelength, DCI Broadband A
Slide 11: Recent Successes for Target Applications
Recent Successes for Target Applications Alien wave DWDM for mobile backhaul Large mobile operator in Mexico PTN aggregation + GPON for broadband services infrastructure Leading wholesale bandwidth provider in Nigeria 200G DWDM for terrestrial long-haul network Top-5 wholesale bandwidth provider in
Slide 12: India Sales Update
India Sales Update Government Private Received order for Navy NFS network Increased fiberization and higher network Started receiving orders from SI partners for capacities resulting in larger % of telco central Bharatnet Phase-2 tenders floated by capex being allotted for optical transport BSNL; mo
Slide 13: International Sales Update
International Sales Update Emerging markets Americas SE Asia o USA Good business visibility from Malaysia, Increasing customer engagements across Tier-2 Vietnam, Sri Lanka and Bangladesh- and Tier-3 accounts multiple new customer wins Applications: Focus on network modernization, Applications: Whole
Slide 14: Strategic Priorities for Growth
Strategic Priorities for Growth Enhance current Invest in new products in R&D products for higher adjacent areas to target capacity and more specific applications Investments data features Competitive Applications Favorable Market Access India Global Use incumbency to Increase sales Sales benefit fr
Slide 15: Summary
Summary Macro outlook of increased data consumption continues to be favorable for our optical business Revenue growth momentum in India continues. In addition, positive government policy support for domestic telecom manufacturing Strong revenue growth expected in International (direct) across geogra