Tajas Networks Q4 FY22 Earnings Call Highlights
- Q422: Net Revenue: Rs. 127 Cr; Q422 PAT Loss: Rs. 50 Cr.
- FY 22 Net Revenues: Rs. 551 Cr (YoY increase of 6.9%); FY 22 PAT Loss: Rs. 63 Cr
- Cash and Cash Equivalents at: Rs 1,102 (no debt)
- Margin pressure due to higher component cost and non-availability of few components.
- Q4 Bookings: Rs 316 Cr; Order book increased to Rs. 1175 Cr (YoY increase of 73%).
- Run-rate business (India-Pvt + International) contributed to 83% of FY22 (same as in FY21). India-Govt was 17% of FY22 revenues. YoY growth of 8.7%. Multiple orders won in critical infra segment; healthy pipeline of new business. India private was 47% of FY 22 revenues. YoY growth of 14.9%. Strong order inflow from telco customers as well as from System Integrators (SI). International was 36% of revenues compared to 40% of revenues in FY21. Closing Backlog India: Rs 992 Cr, International: Rs. 183 Cr. >50% order book was from India- private. Indian Govt (20%), International around 25% order book.
- Revenue is only 2-3% wireless products, rest all optical.
- International orders comes in shorter lead times.
- Company operates in the asset light model where they design and test the products but outsource manufacturing to ESM
- 4G RAN (Radio Access Network), has successfully completed BSNL’s Proof-of-Concept testing of the indigenous solution, front-ended by the System integrator (SI) partner. Their products have been cleared for commercial deployment for which we they are awaiting orders. Their entire product portfolio has been approved as “trusted products” by Government of India.
- International Revenue was weak during Q4
- Q4 revenue shortfall was solely due to component shortages as result of which could not fulfil customer orders and ship complete systems. Company have already placed adequate purchase orders on our suppliers for securing components for our revenue requirements for FY23.
- Announced acquisition of Saankhya Labs on March 30, 2022, to enhance wireless product offering. Acquisition of Saankhya Labs will bring in a strong domain expertise and IPR in wireless communication (5G, Broadcast, Satellite) as well as semiconductor design. Saankhya Labs will be complementary in terms of product/technology areas and customer access.
- Inventory increased to Rs. 278 Cr. Inventory increased since they couldn’t ship complete/ balanced systems to fulfill customers orders due to critical component shortage
- Trade Receivables reduced to 292 Cr. Collected Rs 165 Cr during Q4. Provided for Rs. 67 Cr in Q4, towards long outstanding receivable from one PSU customer. Working capital increased in Q4 by Rs. 18 Cr, primarily due to increased inventory levels. Cash Position reduced to Rs. 1,102 Cr. Debt free company.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell stocks or MF.