Tejas Networks Announces Q4 Results, Net Sales Reach Record High

Tejas Networks, a midcap IT hardware company, recently announced its financial results for the quarter ending December 2023. According to the data released on January 19, 2024, the company's stock has been given a 'Sell' call by MarketsMOJO.

The company's financial performance for the quarter has remained flat, with a slight improvement in its score from -9 to -4 in the last three months. However, there are some positive aspects to note from the financials.

Tejas Networks has shown a significant growth in its net sales, which have increased by 103.96% year on year, reaching Rs 559.96 crore. This is the highest net sales the company has achieved in the last five quarters, indicating a positive sales trend in the near term. Additionally, the company has also been able to settle its debtors faster, with a debtors turnover ratio of 2.58 times in the last five half yearly periods.

On the other hand, there are some areas of concern in the financials. The company's profit before tax (PBT) has fallen by -145.13% year on year, reaching Rs -63.93 crore. Similarly, the profit after tax (PAT) has also declined by -312.4% year on year, reaching Rs -44.87 crore. The inventory turnover ratio has also decreased in the last five half yearly periods, indicating a slower pace of selling inventory. Moreover, the company's interest cost has increased by 17.86% quarter on quarter, signifying increased borrowings.

The earnings per share (EPS) for the quarter have also declined, reaching its lowest at Rs -2.59 in the last five quarters. This indicates a declining profitability and lower earnings for shareholders. The company's debt-equity ratio has also reached its highest at 0.05 times in the last five half yearly periods, suggesting that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, Tejas Networks has shown a mixed financial performance for the quarter ending December 2023. While there are some positive aspects to note, there are also areas of concern that the company needs to address in order to improve its financials. Investors are advised to carefully analyze the data and make informed decisions.