How did you see the latest quarterly results of Tejas Networks for the Mar-22 quarter?

For the Mar-22 quarter Tejas Networks reported a sharp fall of -37.24% in sales revenues at Rs.126.50 crore. Sequential revenues were higher for the quarter by 18.2%. The sharp fall in revenues were triggered by the ongoing microchip shortage, which has been rampant since last 2 years. However, Q4 order inflows were strong at Rs.316 crore, with the total order book very robust at Rs.1,175 crore. The company expects sales situation to improve with the advance inventory orders that it has already started to stock up for a 12 months period.

In terms of bottom line, the Mar-22 quarter saw Tejas Networks dip into a net loss of Rs-49.62cr compared to profit of Rs.33.55 crore in Mar-21 quarter. Losses also doubled compared to sequential period due to the semiconductor shortage in the market. Lower international revenues and higher input costs applied pressure on Tejas margins resulting in a dip into net loss for quarter. The profits were largely impacted negatively by the massive provision for credit losses made by the company to the tune of Rs.68 crore in Q4.