Tejas Networks, a major networking products company in India, has posted a net loss of Rs 50.64 crore in Q4 FY22. In Q4 FY21, Tejas Networks had posted net sales of Rs 201.16 crore with a net loss of 33.42 crores. However, during Q4 FY22, the company said its net sales were Rs 125.50 crore, down 37.61% YoY (year-on-year), and net loss was Rs 50.64 crore.
EBITDA (earnings before interest tax depreciation and amortisation) for the company stood at negative Rs 74.80 crore. Despite the poor performance on the financial side, the stock of the company has given solid returns to people invested in it for over a year. In the previous 12 months, Tejas Networks has given a return of 184.40% and 13.02% in the last six months.
Tata Group and Tejas Networks Recently Invested in Saankhya Labs
Saankhya Labs, a wireless communications software company, was recently acquired by the Tata Group and Tejas Networks. A few days back, Tata Group announced that it would be taking a majority stake of 64% in Saankhya Labs for Rs 264 cash consideration, while Tejas Networks would take the rest of 35.60% stake after approval from the boards.
Tejas Networks would be able to provide better wireless offerings to the market in the 5G era through its recent acquisition of Saankhya Labs.
Tejas Networks has been one of the multi-bagger stocks in India for the last year. It is backed by some prominent investors such as Vijay Kedia, who holds 39 lakh shares in the company. The stock of Tejas Networks will certainly be in focus for the coming few months and years as the digital infrastructure of India grows to facilitate the proper rollout of 5G networks and other enterprise services. The company is expected to make better returns in the future. The last quarter of FY22 was a dull one for Tejas Networks because of the global shortage of chips in the global market.