Tejas Networks Secures Major Contract from TCS for BSNL's 4G/5G Network Expansion
Tejas Networks' shares surged by 6% following a successful contract with TCS to supply and support Radio Access Network (RAN) equipment for BSNL's nationwide 4G/5G network expansion, backed by a ₹7,492 crore purchase order. Despite QoQ revenue decline and a recent net loss, Tejas maintains a strong position in India's telecom sector, outperforming market trends in 2023. The contract solidifies Tejas Networks' role in advancing India's digital landscape with advanced networking solutions.
Tejas Networks Stock Surged 6% on Purchase Order of ₹7,492 crore from TCS
Tejas Networks, a leading provider of networking products, experienced a 6% surge in its shares during early trade on August 16. This boost followed the successful execution of a master contract with Tata Consultancy Services (TCS), a subsidiary of Tata Sons Private Limited, to supply, support, and provide annual maintenance services for Radio Access Network (RAN) equipment. This equipment will play a crucial role in the expansion of Bharat Sanchar Nigam Limited's (BSNL) Pan-India 4G/5G network across approximately 100,000 sites.
Under the terms of this contract, Tejas Networks received a substantial purchase order (PO) amounting to ₹7,492 crore. The company is set to deliver the RAN equipment throughout the calendar years 2023 and 2024, while the support and maintenance services are anticipated to extend for a period of 9 years beyond the warranty period.
The CEO and Managing Director of Tejas Networks, Anand Athreya, highlighted the significance of this collaboration, stating that the cutting-edge portfolio of baseband and radio products provided by Tejas will empower BSNL to establish a scalable and cost-effective network that adheres to international performance and quality standards. This achievement aligns with Tejas Networks' overarching mission to create a prominent Indian telecom and networking products enterprise, offering a comprehensive suite of wireless and wireline solutions.
Despite Tejas Networks recently posting a consolidated net loss of ₹26.3 crores for the April-June quarter, marking an increase from the previous quarter's loss of ₹11.5 crores, the company's revenue still saw a year-on-year surge of over 46 percent. The QoQ revenue, however, experienced a 37.2% decline, dropping to approximately ₹188 crore from ₹299.3 crore.
This new contract marks a significant milestone for Tejas Networks and reflects the growing confidence of industry players in the company's capabilities. With a clear focus on providing advanced networking solutions, Tejas Networks continues to strengthen its position as a key player in the telecommunications sector. The stock price also mirrors this positive trajectory, settling 3.4% higher at ₹842.8 apiece and approaching its 52-week high of ₹893.
In the broader context of 2023, Tejas Networks has outperformed market trends, with its stock gaining over 40% compared to the Nifty50's rise of nearly seven percent. This remarkable performance underscores the company's resilience and its potential to contribute significantly to India's evolving telecommunications landscape.
Tejas Networks creates wireless and wired networking products for various organizations like telecom providers, internet services, utilities, defense, and governments in 75+ countries. It's part of the Tata Group and is mostly owned by Panatone Finvest, which is linked to Tata Sons.
With this contract secured and its technological prowess at the forefront, Tejas Networks is poised to play a pivotal role in shaping India's digital future by enabling the rollout of an advanced and expansive 4G/5G network across the country.
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