Tejas Networks Ltd. · NSE:TEJASNET
Tejas Networks — Q1 FY2019 Earnings Presentation
16 slides from Tejas Networks's earnings presentation, Jul 24, 2018
Slide 1: Tejas Networks Ltd. Earnings Call Presentation (Q1FY19)
Tejas Networks Ltd. Earnings Call Presentation (Q1FY19) 24th July, 2018 Tejas Networks Proprietary 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: Q1 Financial Update
Q1 Financial Update Q1 2019 Revenues (Net)1 232.0 Cr (QoQ 135.1%; YoY 16.0%) EBITDA 62.5 Cr (QoQ 482.0%; YoY 38.9%) Operating Profit2 45.3 Cr (QoQ NA2; YoY 61.1%) PBT 51.6 Cr (QoQ 596.0%; YoY 100.1%) PAT 45.0 Cr (QoQ 54.9%; YoY 120.3%) 1. The reported revenue for Q1 19 are net of GST, however revenu
Slide 4: Financials: Q1'19 vs Q1'18
Financials: Q1’19 vs Q1’18 % of % of Rev ` cr ` cr % of Rev Rev ` cr Revenue (net of taxes and component sales) Revenue (net of taxes) • Net revenues grew by 16.0% on YoY basis • India contributed to a large portion of Q1 revenues • Operating expenses (including depreciation) for Q1 grew by 20.9% on
Slide 5: Key Financial Indicators
Key Financial Indicators Amount in ` crore Particulars Q1 18 Q1 19 Variance 1 219 236 8% • Working capital as on Jun 18 has increased to Rs. Revenue from operations 2 359 crore from Rs. 323 crore as on Mar 18 Revenue from operations (Net) 200 232 16% • Working capital days increased by 4 days to 145
Slide 6: Corporate Update
Corporate Update Team 702 employees, 51% in R&D Hired Head of Worldwide Customer Support – Ranajit Hajra (ex-Nokia/ALU) Awards Won “Best Exporter” award in Special Category (Gold) from Federation of Karnataka Chambers of Commerce and Industry (FKCCI) Patents, IPs and Standards Cumulative 342 patents
Slide 7: Smartphone Usage + Internet + Mobile Video Exponential Data Growth
Smartphone Usage + Internet + Mobile Video Exponential Data Growth 2008 2018 <5K >2MM APPS* APPS* * - on Apple iOS 2009 2018 24% 51% 2012 2018 <5 DAILY >30 MINS DAILY Source: Mary Meeker reports and IDC MINS Tejas Networks Proprietary Software Enabled Transformation 7
Slide 8: Macro Trends Driving Optical Spend
Macro Trends Driving Optical Spend Consumer Broadband 2022 Growing investments in high-speed broadband using wireline and fixed wireless technologies 23 5G Densification Billion More base stations (“densification”), higher- USD speed access and larger capacity optical pipes Fiberization Deeper fiber
Slide 9: 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 10: Our Focus Areas
Our Focus Areas SDH, PTN, GPON, SDH, Ethernet/IP, LTE DWDM,OTN IP/MPLS Mobile Access Long-haul (LH) and Enterprise Ultra Long- Aggregation Metro Core Access haul (ULH) Transport Residential Access Network 78% of Total Optical Spend By 2022 Tejas Networks Proprietary Software Enabled Transformation S
Slide 11: 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, CPRI Technologies: 100G/200G DWDM, DCI Broadband Access Network & Infrastructur
Slide 12: Large Addressable Global Market Opportunity
Large Addressable Global Market Opportunity Large market opportunity- growing from $18.6 Bn to $23 Bn by 2023 Sales focus on countries and regions where we see favourable market access India, SE Asia, Africa, Americas Our addressable market in these geographies is ~$7 Bn (growing to $9 Bn by 2022) F
Slide 13: Data Demand in India continues
Data Demand in India continues …has fueled net use… India carries the world’s most internet data traffic 03 April 2018 | Natalie Bannerman India’s data usage grew five times over the last year, with its networks carrying an average of 2.1 exabytes of data per month. According to the Times of India t
Slide 14: India Sales Update
India Sales Update Government Private Healthy backlog of orders for Bharatnet as With data growth, operators are well as from Utilities increasing their focus on fiberization and We have won multiple tenders for Bharatnet increasing network capacities; resulting in Phase-2 as well as in defense (via
Slide 15: International Sales Update
International Sales Update Emerging markets Americas SE Asia: o USA Good pipeline of business from Malaysia, Increased sales investments Vietnam, Sri Lanka and Bangladesh Applications: Focus on network modernization, Applications: Wholesale Bandwidth, SONET replacement and utility opportunities Ente
Slide 16: Summary
Summary Strong start to FY19- healthy revenue and profitability growth Business pipeline for FY19 is robust across India as well as International Data/4G is driving demand for optical equipment; 5G will accelerate it We expect to see strong growth momentum in our focus geographies Unique business mo