Tejas Networks Slips Into Wider Loss As Revenue Plunges In April-June

Tejas Networks Ltd. reported a sharp decline in performance for the April-June quarter, slipping into a wider consolidated net loss of ₹1.94 billion, compared to a loss of ₹718 million in the previous quarter. The company had posted a net profit of ₹774.8 million in the same quarter last year.

Revenue for the quarter plunged 89.4% on quarter and 87.1% on year to just ₹2.02 billion, marking a severe slowdown in business. This is one of the company’s steepest revenue drops in recent quarters.

Total expenditure fell significantly to ₹5.09 billion, down from ₹19.60 billion a quarter ago, reflecting reduced business activity. However, finance costs remained elevated at ₹747.7 million, compared to ₹714.9 million in the March quarter.

The company recorded a tax write-back of ₹1.03 billion during the quarter, compared to a tax outgo of ₹267.1 million previously. Other income rose marginally to ₹95.5 million from ₹80.4 million in the prior quarter.

The steep revenue drop and mounting losses signal a weak start to the financial year for the Tata Group-backed telecom equipment manufacturer.