Slide 1: Tejas Networks Ltd. Earnings Call Presentation (Q2FY18)
Tejas Networks Ltd. Earnings Call Presentation (Q2FY18) 25th October, 2017 © Tejas Networks Copyright. 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 Key Takeaways
Q2 Key Takeaways Particulars Q2 2018 1H 2018 Revenues (Net)1 214.90 Cr (YoY 20.9%) 415.00 Cr (YoY 33.5%) EBITDA 46.41 Cr (YoY 48.5%) 91.40 Cr (YoY 69.9%) Operating Profit 29.12 Cr (YoY 61.2%) 57.25 Cr (YoY 120.2%) PAT 26.87 Cr (YoY 68.0%) 47.31 Cr (YoY 232.5%) 1. The reported revenue for Q2 18 are n
Slide 4: Telecom Industry Eco-system: Where we fit
Telecom Industry Eco-system : Where we fit RJio, Airtel, Idea Nokia, Ericsson, Huawei Telecom Operators Cell Towers Active Equipment Wireless Access Our Customers (Connectivity) Applications BBNL, BSNL, PGCIL, Railtel Tejas, Ciena, Infinera, ALU Enterprises Government/PSU Optical Transmission Homes
Slide 5: 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 6: 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 7: Impact of 4G on Transmission Networks
Impact of 4G on Transmission Networks (Optical “Backhaul”) 2G/3G 1G 10G 2G/3G BTS Radio Microwave Optical Access Optical Aggregation Access Backhaul Backhaul Backhaul 4G Optical Access progressively • Packet transport with circuit emulation replaces microwave backhaul replaces circuit backhaul • Hig
Slide 8: 5G: Next-generation Mobile Broadband
5G : Next-generation Mobile Broadband 5G is the next evolution of mobile data 10 GBPS 5G standard is being developed by ITU-R and 3GPP; 2019 5G ITU-R defining requirements & 3GPP developing technical specs 1 GBPS Phase 1 – Rel 15 New Radio (NR) by end-2017 2010 4G FASTER ACCESS Phase 2 – Rel 16 Full
Slide 9: 5G - Higher Bandwidth, Lower Latency, IoT
5G- Higher Bandwidth, Lower Latency, IoT Source: NGMN 9 © Tejas Networks Copyright. All Rights Reserved. Software Enabled Transformation
Slide 10: 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 Fronthaul opportunity in addition to Backhaul “Mobile transpor
Slide 11: Optical Networks for 5G (Optical Fronthaul)
Optical Networks for 5G (Optical “Fronthaul”) 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 archite
Slide 12: Optical Equipment Opportunities Expand with 5G
Optical Equipment Opportunities Expand with 5G Mobile Backhaul expenditure on optical fiber ($m)) Source: Ovum Source: Ovum The Microwave Transmission market dropped to a new quarterly revenue low in 2Q17, declining 18 percent year-over-year (Y/Y). The main factors driving this disappointing quarter
Slide 13: India: Optical Equipment Capex is on an Upswing
India: Optical Equipment Capex is on an Upswing “India is not only the second-largest market, it is also the most vibrant and fastest growing telecom market in the world. The room for growth is so huge that three-to-four players can comfortably survive in a very healthy state…. Data will grow ten ti
Slide 14: Emerging Markets: Growing Broadband Penetration
Emerging Markets: Growing Broadband Penetration Number of countries with national broadband plans 2006-2016) “Southeast Asia is the world’s fastest growing Internet region. Nearly 4 million new users will come online every month for the next 5 years translating to a user base of 480 million by 2020,
Slide 15: Q2 18 vs Q2 17
Q2 18 vs Q2 17 % of % of % of Rev ` cr Rev ` cr Rev Revenue (net of taxes and component sales) Revenue (net of taxes) • Company registered 20.9% growth on revenues (net of taxes and pass through component sales to contract manufacturers) • The reported revenue for Q2 18 are net of GST, however reven
Slide 16: H1 18 vs H1 17
H1 18 vs H1 17 % of Rev ` cr % of % of ` cr Rev Rev Revenue (net of taxes and component sales) Revenue (net of taxes) • Company registered 33.5% growth on revenues (net of taxes and pass through component sales to contract manufacturers) • The reported revenue for Q2 18 are net of GST, however reven
Slide 17: Key Financial Indicators
Key Financial Indicators Amount in ` crore Particulars H1 17 H1 18 YoY Q2 FY17 Q2 FY 18 YoY Revenue from operations 1 371 435 17% 224 216 -3% Revenue from operations (Net) 2 311 415 34% 178 215 21% EBIDTA 54 91 70% 31 46 49% Operating Profit 26 57 120% 18 29 61% Profit after Tax 14 47 232% 16 27 68%
Slide 18: 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 19: Summary
Summary Tejas has demonstrated strong technology and market leadership Ranked #1 in market share (by Ovum) for optical aggregation in India- world’s most competitive telecom market Tejas is India’s leading deep-technology, IPR driven company with more than 337 patents Data and 4G is driving demand f
Slide 20: 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 21: Thank you
Thank you © Tejas Networks Copyright. All Rights Reserved. Software Enabled Transformation www.tejasnetworks.com