Tejas Networks shares decline 9% after narrow, but fourth straight quarterly loss in Q3

Shares of Tejas Networks Ltd. declined on Monday, January 12, after the company reported its third quarter earnings over the weekend. This was the firm's fourth consecutive quarterly loss.

The company's revenue of ₹307 crore increased 17% sequentially from ₹262 crore but declined 88% from the previous year's ₹2,642 crore.

The BSNL delays persist, with advance purchase order issued earlier but the final one pending. This along, with weak sales have impacted the company's topline during the December quarter.

Tejas Networks' December quarter loss stood at ₹196.5 crore. However, it was narrower than the previous quarter's loss of ₹307 crore.

Its earnings before interest, tax, depreciation

and amortisation (EBITDA) was at a loss of ₹134 crore in the third quarter compared to a loss of ₹293.7 crore in the previous quarter and was down from ₹371.3 crore in the year-ago period.

Tejas Networks recorded an inventory of ₹2,363 crore in the third quarter compared to ₹2,383 crore in the previous quarter. It will be converted to finished goods and shipped in the upcoming months, the company said.

Its trade receivables in the December quarter were at ₹3,284 crore compared to ₹4,026 crore in the previous quarter.

The firm's cash position at the end of the third quarter was at ₹537 crore and its gross debt was at ₹3,885 crore.

Tejas Networks has a net debt of ₹3,349 crore compared to ₹3,738 crore in the previous quarter — mainly due to lower working capital, partly offset by capex.

Shares of Tejas Networks were down 8.8% at ₹380.5 apiece around 10.15 am on Monday. The stock has declined 61.5% in the past year.

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