Tejas Networks Reports Strong Financial Performance in Q1 FY25, But Some Areas Need Improvement

Tejas Networks, a leading IT hardware company, has recently announced its financial results for the quarter ending June 2024. The company has shown positive performance in this quarter, with a score of 19, compared to 26 in the previous quarter.

One of the key highlights of the financials is the significant growth in net sales, which has increased by 731.75% year on year, reaching Rs 1,562.77 crore. This trend is expected to continue in the near term, indicating a positive outlook for the company.

Another positive aspect is the growth in Profit Before Tax (PBT), which has increased by 227.13% year on year, reaching Rs 108.52 crore. This is a strong indicator of the company’s financial health and its ability to generate profits.

The company has also shown a significant growth in Profit After Tax (PAT), which has increased by 394.7% year on year, reaching Rs 77.48 crore. This is a positive sign for investors, as it shows the company’s ability to generate profits after deducting all expenses.

However, there are some areas that need improvement, as seen in the financials. The company’s Operating Cash Flow has been consistently falling in the last three years, with the latest figure at Rs -2,088.06 crore. This indicates a decline in the company’s cash revenues from business operations.

Another concern is the rising interest cost, which has increased by 83.46% quarter on quarter, reaching Rs 56.56 crore. This signifies increased borrowings by the company, which could impact its financial stability in the long run.

In conclusion, Tejas Networks has shown positive financial performance in the quarter ending June 2024, with strong growth in net sales, PBT, and PAT. However, there are some areas that need improvement, such as operating cash flow and rising interest costs. Based on these factors, MarketsMOJO has given a ‘Hold’ call for the company’s stock.