Tejas Networks, a Tata Group company, witnessed a remarkable surge of approximately 7%, driving its shares to ₹869.95 each during the early trading session on Wednesday. This impressive upswing came after the company today announced that it has executed a Master Contract for supply, support, and annual maintenance services of its Radio Access Network (the "RAN") equipment for BSNL’s Pan-India 4G/5G network with Tata Consultancy Services Limited (TCS).
"As a part of this contract, the company received a purchase order from TCS for ₹7,492 crore to supply its latest 4G/5G RAN equipment for approximately 100,000 sites, which will be executed during the calendar years 2023 and 2024. The company won this order after successfully completing extensive trials as part of a consortium led by TCS," the company said in a regulatory filing.
Mr Anand Athreya, CEO and Managing Director of Tejas Networks, said, "We are delighted to be selected as the sole supplier of 4G/5G RAN equipment for one of the largest mobile networks in the world. Our cutting-edge portfolio of baseband and radio products will enable BSNL to roll out a scalable and cost-effective network that meets world-class performance and quality standards. This also furthers our mission to create India’s first global-scale telecom and networking products company with an end-to-end suite of wireless and wireline offerings."
Mr. Arnob Roy, COO and Executive Director of Tejas Networks, said, "We are proud to be a member of the TCS consortium that has put the country on the world map in a highly competitive, deep-technology segment. We are committed to collaborating with our consortium partners to ensure a best-in-class service experience for BSNL subscribers, both consumers and businesses, around the country."
Tejas Networks, part of the Tata Group, designs and manufactures high-performance wireline and wireless networking products for telecommunications service providers, internet service providers, utilities, defence, and government entities in over 75 countries.
The company shares, from their all-time low of ₹30.70 in March 2020, have skyrocketed 2675% to date, with consistent yearly performance. Notably, in CY20, the shares saw a significant rally of 45%. The momentum continued in the subsequent CY21, generating an impressive multi-bagger return of 205.47%. In CY22, the shares maintained their upward trajectory with a gain of 38%. The ongoing year has also seen a continuation of this bullish trend, with the shares yielding a remarkable return of 48% so far.
For Q1 FY24, the company reported a net loss of ₹26 crore, and revenue from operations during the same period also dropped to ₹188 crore from ₹126 crore recorded in the same period of last year.
"With a healthy order book of ₹1,909 crore for our wireline business and with the outlook for significant wireless business, we expect to accelerate our quarterly revenue growth, the company said.
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