TEJAS NETWORKS 2023-24 Annual Report Analysis

Mon, 10 Jun

TEJAS NETWORKS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

TEJAS NETWORKS Income Statement Analysis

• Operating income during the year rose 168.1% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.8% in FY24 as against 1.8% in FY23.
• Depreciation charges increased by 48.9% and finance costs increased by 215.3% YoY, respectively.
• Other income declined by 42.3% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 4.0% in FY23 to 2.5% in FY24.

TEJAS NETWORKS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,215	24,709	168.1%
Other income	Rs m	1,120	647	-42.3%
Total Revenues	Rs m	10,336	25,356	145.3%
Gross profit	Rs m	-170	2,659	NA
Depreciation	Rs m	1,225	1,825	48.9%
Interest	Rs m	152	479	215.3%
Profit before tax	Rs m	-427	1,002	NA
Tax	Rs m	-62	372	NA
Profit after tax	Rs m	-364	630	NA
Gross profit margin	%	-1.8	10.8
Effective tax rate	%	14.6	37.2
Net profit margin	%	-4.0	2.5

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TEJAS NETWORKS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 47 billion as compared to Rs 4 billion in FY23, thereby witnessing an increase of 1010.9%.
• Current assets rose 154% and stood at Rs 68 billion, while fixed assets rose 58% and stood at Rs 14 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 82 billion as against Rs 36 billion during FY23, thereby witnessing a growth of 130%.

TEJAS NETWORKS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	28,958	30,142	4.1
Current Liabilities	Rs m	4,264	47,367	1,010.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	35,599	81,759	129.7
Current assets	Rs m	26,673	67,685	153.8
Fixed Assets	Rs m	8,926	14,074	57.7
Total Assets	Rs m	35,599	81,759	129.7

TEJAS NETWORKS Cash Flow Statement Analysis

• TEJAS NETWORKS's cash flow from operating activities (CFO) during FY24 stood at Rs -20 billion, an improvement of 435.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 4 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 17 billion, an improvement of 72% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 1 billion from the Rs 378 million net cash flows seen during FY23.

TEJAS NETWORKS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	-3,801	-20,365	-
Cash Flow from Investing Activities	Rs m	-5,814	4,305	-
Cash Flow from Financing Activities	Rs m	9,989	17,134	71.5%
Net Cash Flow	Rs m	378	1,072	183.3%

Current Valuations for TEJAS NETWORKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 3.7, an improvement from the EPS of Rs -2.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 1,287.2, stands at 349.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 8.9 times.
• The company's price to cash flow (P/CF) ratio stood at 53.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	54.7	144.7
TTM Earnings per share	Rs	-2.2	3.7
Diluted earnings per share	Rs	-2.1	3.7
Price to Cash Flow	x	115.3	53.1
TTM P/E ratio	x	-272.6	349.3
Price / Book Value ratio	x	3.4	4.3
Market Cap	Rs m	97,495	130,434
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TEJAS NETWORKS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY24, from 6.3x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 3.1x during FY24, from -1.8x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 2.1% during FY24, from -1.3% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 4.9% during FY24, from -0.9% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 1.4% during FY24, from -0.6% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	6.3	1.4
Debtors’ Days	Days	20	21
Interest coverage	x	-1.8	3.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-0.6	1.4
Return on equity	%	-1.3	2.1
Return on capital employed	%	-0.9	4.9

To see how TEJAS NETWORKS has performed over the last 5 years, please visit here.

TEJAS NETWORKS Share Price Performance

Over the last one year, TEJAS NETWORKS share price has moved up from Rs 716.8 to Rs 1,287.2, registering a gain of Rs 570.5 or around 79.6%.

Overall, the S&P BSE SENSEX is up 22.2% over the year.

(To know more, check out historical annual results for TEJAS NETWORKS and quarterly results for TEJAS NETWORKS)