Tejas Networks Q1 FY25 Earnings Conference Call Summary
Key Financial Highlights
• Best Quarter Ever: Q1 FY25 net revenue of INR 1,563 crores, an 8.3x year-over-year increase.
• Profit After Tax: INR 77 crores.
• Order Book: Stood at INR 7,091 crores.
• Revenue Growth: Total revenue from operations increased 8x year-over-year.
• Net Debt: INR 2,200 crores due to increased inventory, trade receivables, and borrowings.
Business Performance Overview
• India Government Sector: Contributed 7% of overall revenue, driven by utility network buildouts.
• India Private Sector: 90% of revenue with over 14x growth, mainly from BSNL 4G shipments.
• International Business: Flat performance, contributing only 3% to total revenue.
Future Opportunities
• Key Projects: Expansion of BSNL 4G network, BharatNet Phase 3, and Kavach project for Indian Railways.
• International Engagement: Focus on broadband opportunities in the Middle East and South Asia.
• Market Trends: Increasing demand for high-speed connectivity driven by applications like Generative AI and streaming services.
Cost and Competitive Landscape
• 4G to 5G Upgrade Costs: Lower costs for upgrading existing 4G bands; higher costs for new 5G deployments.
• Competitive Positioning: Tejas Networks competes with Nokia, Cisco, and Ericsson, focusing on modern 4G equipment with integrated backhaul.
Data Center and Wireless Projects
• Data Center Focus: Equipment aimed at data center connectivity; significant investment opportunities in the U.S.
• Wireless Margins: Expected improvement as more orders are secured, aligning with wireline product margins.
Proof of Concepts (POCs)
• POC Criteria: Extensive field trials focusing on interoperability and efficiency.
• International Market Potential: Smaller opportunities compared to India but significant in greenfield deployments.
Timeline and Execution
• Order Execution: Anticipated timelines for BSNL 4G to 5G and BharatNet orders are 18 to 24 months.
• International Growth Strategy: Aiming to become a global OEM with increased investments in advanced economies.
Conclusion
• Management Outlook: Positive sentiment about the current quarter and commitment to execution and growth.

Tejas Networks Q4 FY24 Earnings Conference Call Summary
Key Highlights
• Date of Call: April 22, 2024
• Submission: Transcript submitted to National Stock Exchange of India and BSE Limited on April 26, 2024.
• Best Performance: Achieved best-ever quarter and year with significant revenue growth and profitability.
Financial Performance
• Q4 FY24 Results:
• Net Revenue: ₹1,327 crores
• Profit After Tax (PAT): ₹147 crores
• Full Year FY24 Results:
• Total Revenues: ₹2,471 crores
• PAT: ₹63 crores
• Order Book: Exceeded ₹8,200 crores.
Business Segments
• Strong Performance: Notable growth in wireless and wireline segments, especially with BSNL projects.
• Market Expansion: Entered high-growth markets like 4G/5G RAN and Service Provider Switching/Routing.
• Manufacturing Scalability: Shipped 15,000 routers in two months; workforce expanded by 42%.
Future Outlook
• Opportunities: Anticipated growth in broadband and utility modernization, with significant investments planned.
• Project Timelines: Expected completion of BSNL supplies and network deployment by end of FY '25.
Key Discussions
• Margins: Increased margins noted; confidence in achieving historical levels long-term.
• International Focus: Growing opportunities in U.S., Europe, and emerging markets.
• BharatNet Update: Tender processes underway; Tejas well-positioned.
Operational Insights
• Working Capital Cycle: Influenced by BSNL 4G project; expected stabilization as execution progresses.
• Product Competitiveness: Advanced technology and competitive pricing highlighted.
Q&A Highlights
• Wireless Business: Equipment shipped for over 10,000 sites; fulfillment expected in 3-4 quarters.
• Production-Linked Incentive (PLI): Expected to be 5%-6% of incremental manufacturing revenue.
• Revenue Classification: Clarified distinctions between government and private sector revenues.
• Inventory Management: Significant inventory built for BSNL project; peak expected in 3-4 months.
Closing Remarks
• Gratitude Expressed: CEO Anand Athreya thanked employees, customers, and stakeholders for support, emphasizing a record year and commitment to growth.

Meeting Overview
• Date: February 9, 2024
• Company: Tejas Networks Limited
• Context: Meeting for unsecured creditors directed by the National Company Law Tribunal (NCLT)
Key Participants
• Chair: Uday Shankar R M
• Company Secretary: N R Ravikrishnan
Meeting Proceedings
• Welcome: Participants were welcomed and meeting procedures were outlined.
• Voting: Remote e-voting options were provided.
• Quorum: Confirmed before proceeding.
• Speaker Registrations: No registrations from unsecured creditors.
Conclusion
• Meeting Closure: Uday Shankar declared the meeting complete after e-voting.
• Next Steps: Voting results to be reported to NCLT and published on the company's website.

Meeting Details
• Date: February 9, 2024
• Location: Bengaluru
• Purpose: Discuss the Scheme of Amalgamation with Saankhya Labs and Saankhya Strategic Electronics
• Facilitator: N.R. Ravikrishnan (Company Secretary)
• Chairperson: Uday Shankar R M
Meeting Proceedings
• Welcoming participants and outlining procedures, including remote e-voting options.
• Confirmation of quorum by the Chairperson.
• Sole focus on approving the amalgamation scheme.
• Inclusion of a question-and-answer segment for shareholders.
Shareholder Feedback
• Support for Merger: Shareholders expressed optimism about innovation and growth in wireless communications.
• Concerns Raised:
• Dr. Arun Kumar Boppanna: Semiconductor shortages and their impact on P&L and Capex.
• Manoj Kumar Gupta: Need for better quorum management in future meetings.
• Congratulatory Remarks: Naveen Bothra and Vasudeva Ramasamy congratulated management and sought clarity on integration.
Conclusion
• Resolutions to be reported to the NCLT.
• Encouragement for shareholders to submit further questions.
• Call for e-voting and commitment to address detailed queries.

Tejas Networks Q3 FY24 Earnings Conference Call Summary
Earnings Overview
• Date of Call: January 19, 2024
• Revenue: INR 560 crores for Q3 FY24, surpassing FY23 total revenue within nine months.
• Order Book: Robust order book of INR 9,028 crores.
• Loss: Quarterly loss of INR 45 crores.
Business Segments
• Wireless and Wireline Growth:
• Significant orders for BSNL 4G.
• Provisional order for Saankhya Labs from National Space India Limited.
• Successful deployment of high-capacity networks in wireline.
Financial Insights
• CFO Commentary:
• 41% quarter-over-quarter revenue growth.
• 84% year-over-year revenue increase.
• Discussion on inventory and trade receivables.
Corporate Achievements
• Patents and Recognition:
• 31 patents granted.
• Recognition in 2023 Gartner® Market Guide for Optical Transport Systems.
• Awards for FTTH solution and TJ1600 product.
• Merger Progress: Ongoing merger with Saankhya Labs.
Margin and Cost Management
• Low Margins:
• Initial lower margins in wireless segment with significant future opportunities.
• Increase in trade receivables linked to revenue growth.
• Raw Material Costs:
• Rise attributed to product mix and lower export revenues.
• Project profitability expected to normalize.
Working Capital and Inventory
• Inventory Increase:
• Due to large ongoing projects in wireline and wireless sectors.
• Inventory levels assessed against order book rather than historical metrics.
International Business Development
• Focus on Exports:
• Backlog in international orders.
• Ongoing investments in sales and support teams.
• Currency Risk Management:
• Active hedging against currency fluctuations.
Technology and Competitiveness
• 4G Technology Development:
• Successful development and testing of 4G technology.
• Concerns primarily about network build-out pace, not technology quality.
Future Outlook
• Management's Optimism:
• Continuous enhancement of product margins.
• Positive expectations for wireless and optical product performance.
• Execution Focus:
• Commitment to delivering on strategic investments and project execution.
Conclusion
• Call Closure:
• Moderated by ICICI Securities, with gratitude expressed by Anand Athreya.
• Transcript Note: Edited for clarity, not a verbatim account.

Tejas Networks Q2 FY24 Earnings Conference Call Summary
Earnings Highlights
• Record Revenue: Rs. 396 Crores, an 80% year-over-year increase.
• Backlog: Rs. 9,271 Crores.
• PAT Loss: Rs. 13 Crores due to increased R&D and manufacturing investments.
• Cash Flow: Highest quarterly cash flow from operations at Rs. 532 Crores.
Key Orders and Developments
• Major Contracts: Significant order with TCS for 4G/5G equipment for BSNL.
• International Expansion: Launch of a showcase network in Italy.
• Revenue Distribution:
• India Private: ~50%
• India Government: 29%
• International Sales: 23%
Management Changes
• CFO Resignation: Venkatesh Gadiyar resigns; Sumit Dhingra appointed as new CFO starting December 1, 2023.
Supply Chain and Financial Management
• Supply Chain Challenges: Management optimistic about improving supply chain management and controlling component lead times.
• International Orders: Expected fulfillment timelines of 16 to 20 weeks.
Long-term Strategy
• International Business Focus: Actively investing in expanding international sales, targeting Europe and the US.
• Emerging Markets: Focus on Southeast Asia, the Middle East, and Africa.
Profitability and Future Projects
• Profitability Outlook: Expected improvement as revenues grow; recent PAT loss attributed to forward-looking investments.
• Successful Projects: Reference to successful project in Italy for future business.
Intellectual Property (IP) Utilization
• IP in Product Development: Strategic use of IP to reduce costs and enhance competitiveness.
• Focus Areas: Satellite communications and semiconductor design, with an emphasis on internal chip development.
Government Incentives and Order Management
• Production-Linked Incentive (PLI): Applying for benefits for all products.
• Order Book Diversification: Aiming for better purchasing power and recognition as a leading OEM globally.
Revenue Sustainability
• Post-BSNL Order Revenue: Confidence in maintaining strong financial performance after completing significant BSNL order.
• Future Growth Areas: Potential growth in 5G and government projects like BharatNet Phase-III.
Conclusion
• Execution and Credibility: Emphasis on successful execution to attract more business opportunities.
• R&D Expansion: Doubling of the R&D team, with TCS handling deployment.

Tejas Networks Q1 FY24 Earnings Conference Call Summary
Financial Performance
• Net Revenue: INR 188 crores (49% increase YoY)
• Net Loss: INR 26 crores (compared to INR 7 crores loss in Q1 FY23)
• Cash Position: INR 943 crores
• Order Backlog: INR 1,909 crores
Business Highlights
• Wireline Segment: Strong momentum with significant orders from a Tier 1 telco in India and a showcase network in Italy.
• Wireless Segment: Successful pilot network commissioning for BSNL's 4G services.
• Future Growth: Management optimistic about growth and ongoing R&D investments.
Challenges and Supply Chain
• Raw Material Shortages: Acknowledged challenges but noted improvements.
• Supply Chain Disruption: One-time disruption due to EMS partner relocating, impacting supply chains for 6-7 weeks.
• Margins: Affected by higher sourcing costs; expected to improve as supply stabilizes.
Order and Revenue Insights
• Revenue Breakdown: Majority from wireline; wireless driven by BSNL 4G.
• BSNL Orders: Ongoing quarterly run-rate orders, not one-time purchases.
• Wireless Contract Rollout: Timeline of 12-18 months for supply and deployment.
R&D and Future Plans
• Investments: Plans for growth in headcount and capacity for international expansion.
• Cost Management: Effective strategies in place to maintain stable blended margins.
Partnerships and Acquisitions
• Renesas Partnership: Focus on new product supply and joint technology development.
• Saankhya Labs: Plans to leverage semiconductor capabilities for BSNL equipment.
Inventory and Cash Flow Management
• Inventory Buildup: Prepared for compressed delivery timelines for large orders.
• Debt Concerns: Assured cash flow management to avoid debt.
Geopolitical and Market Considerations
• Supply Chain Stability: No significant disruptions from geopolitical tensions.
• Execution Timeline: 50-60% of the INR 1,900 crore order book expected to be executed this financial year.
Conclusion
• Positive Outlook: Management expressed excitement about the order book and future growth prospects.

Tejas Networks Limited 23rd Annual General Meeting Summary
Meeting Overview
• Date: June 20, 2023
• Submission: Transcript submitted to National Stock Exchange of India and BSE Limited on June 27, 2023.
• Format: Conducted via video conference.
• Participants: Chairman N. Ganapathy Subramaniam, board members, auditors, and shareholders.
Financial Performance
• FY23 Revenue: INR 919.6 crores (67% year-on-year growth).
• Loss After Tax: INR 36.4 crores.
• Order Book: INR 1,934 crores, driven by optical product wins.
• R&D Investment: 28% of total expenses.
Strategic Initiatives
• Manufacturing Capacity: Expanded to support growth.
• Integration: Saankhya Labs to enhance telecom offerings.
• Patents: Filed 445 global patent applications.
• Product Development: Focus on 4G, 5G, and software-driven products.
Future Outlook
• Trials: Ongoing with Bharat Sanchar Nigam Limited for 4G and 5G products.
• Market Potential: Targeting a growing addressable market projected to reach $86.6 billion by 2028.
• Sustainability Goals: Commitment to environmental sustainability and renewable energy.
Shareholder Engagement
• Q&A Session: Addressed questions on strategic positioning, cybersecurity, and market opportunities.
• Feedback: Shareholders expressed appreciation for management and requested more engagement.
Leadership Transition
• New CEO: Anand Atreya welcomed as successor to Sanjay Nayak.
• Acknowledgment: Nayak's contributions over 23 years recognized.
Operational Challenges
• Attrition Rates: Overall attrition at 20%, R&D at 15%.
• Supply Chain Issues: Challenges with semiconductor components acknowledged.
Key Projects
• BSNL Collaboration: Deployment of over 100,000 sites for 4G and 5G networks.
• Satellite Communications: Exploring opportunities through partnership with Saankhya Labs.
Conclusion
• Optimism: Management expressed confidence in future growth and market positioning.
• Commitment: Focus on enhancing product capabilities and sustainability initiatives.

Tejas Networks Q4 FY23 Earnings Conference Call Summary
Conference Call Details
• Date: April 21, 2023
• Submission Date: April 26, 2023
• Moderated by: Bhupendra Tiwary (ICICI Securities)
• Key Personnel:
• CEO: Sanjay Nayak
• COO: Arnob Roy
• CFO: Venkatesh Gadiyar
• CTO: Kumar N. Sivarajan
• Signed by: N R Ravikrishnan (General Counsel and Company Secretary)
Financial Performance
• Annual Revenue: INR 920 crores (67% YoY increase)
• Q4 Revenue: INR 299 crores (136% QoQ increase)
• Loss After Tax: INR 11 crores (Q4), INR 36 crores (FY)
• Cash Reserves: INR 1306 crores
• Order Book: All-time high of INR 1,934 crores
Business Highlights
• Wireline Business: Strong momentum with a INR 696 crores router tender win.
• Wireless Projects: Progress in 4G initiatives.
• Manufacturing Capacity: Expanded through partnerships with four new EMS partners.
• R&D Investment: Increased workforce by 41% to 1,305 employees.
Leadership Transition
• CEO Transition: Sanjay Nayak plans to retire by next AGM; Anand Athreya appointed as incoming CEO.
• Awards and Recognition: Received multiple awards, including Telecom Person of the Year.
Revenue Insights
• India Government Segment: 158.2% YoY growth.
• India Private Segment: 79.3% growth.
• International Segment: 8.5% growth due to strategic focus on domestic opportunities.
Future Outlook
• Growth Projections: Anticipates substantial growth in optical and wireless products in India.
• Challenges: Lower gross margins expected in FY24, but overall revenue and profitability projected to increase.
Strategic Discussions
• Focus Areas: Stabilizing optical business and successful delivery of 4G/5G products.
• BSNL Opportunities: Importance of securing large anchor customers for scaling products.
Operational Updates
• Saankhya Labs Merger: All approvals obtained; expected completion by fiscal year-end.
• Employee Growth: Significant increase in workforce to support technology expansion.
Conclusion
• Confidence in Future: Sanjay Nayak expressed optimism about the company's solid foundation and growth potential as he prepares for retirement.

Tejas Networks Q3 FY23 Earnings Conference Call Summary
Call Details
• Date: February 6, 2023
• Transcript Submission: February 13, 2023
• Hosted by: ICICI Securities
• Key Management Present:
• CEO: Sanjay Nayak
• COO: Arnob Roy
• CFO: Venkatesh Gadiyar
• CTO: Kumar N. Sivarajan
Financial Performance
• Net Revenues: 275 Crores
• Consolidated Loss After Tax: 11 Crores
• Standalone Profit: 5 Crores
• Order Book: 1431 Crores
• Cash Reserves: 1221 Crores
• Year-on-Year Revenue Growth: 156.4%
• Nine-Month Revenue Total: 620.3 Crores (46.3% growth)
Business Developments
• Optical Business: Strong momentum with significant 4G and 5G infrastructure tenders.
• Supply Chain Challenges: Addressing semiconductor shortages by enhancing processes and expanding capacity.
• Investment: Received 300 Crores from Panatone Finvest.
• R&D Expansion: New facility at IIT Madras and focus on 5G technology through Saankhya Labs integration.
Strategic Focus
• Revenue Breakdown: 76% from India private and international sectors.
• International Growth: Expected backlog to drive revenues in Q4.
• R&D Investments: Focus on long-haul transmission, fiber to home, and wireless products.
Supply Chain Management
• Current Situation: Improvements noted, but challenges remain in analog and power systems.
• Proactive Planning: Emphasis on better procurement strategies and visibility into component availability.
Profitability Outlook
• Gross Margins: Expected restoration in wireline business next fiscal year.
• EBITDA Margin Target: Around 15% in the medium term.
• Order Backlog Execution: Anticipated at 70-75% over the next 12 months.
Future Expectations
• International Orders: Anticipated ramp-up starting in 2024.
• Service Revenue Potential: Significant interest in management software solutions, DaaS, and MaaS.
• PLI Scheme: Approved for Rs. 750 Crores, with potential for Rs. 2800 Crores over five years.
Conclusion
• Optimism for Growth: Confidence in supply chain improvements and execution of large orders.
• Call Closure: Invitation for questions from analysts, concluding with thanks to participants.