Shares of Tejas Networks Ltd. extended their gains on Monday following robust Q2 results. The stock rallied 20% in the early deals to hit the upper circuit limit at Rs 1,425.20 apiece on the NSE.
The Tata Group company reported a stellar performance in the quarter ended Sept. 30, 2024, marking a near seven-fold increase in its revenue at Rs 2,811 crore, compared to Rs 396 crore a year ago.
The company's net profit stood at Rs 275 crore for the period under review, compared to a net loss of Rs 39 crore in Q2 FY24.
Its Ebit margin came at 16.3% in Q2 FY25 versus 10.7% in Q1.
The turnaround in Tejas Networks' financial performance was fuelled by a ramp-up for BSNL's pan India network. The company shipped equipment for over 58,000 sites during the September quarter.
BSNL's 4G-related orders to TCS dominated Tejas Networks' India business which made up 93% of the total revenue, the company said. Tejas Networks also received additional orders for densification of installed 4G sites in a few circles.
The company said that it is expecting major orders in the near future including BSNL's 4G and 5G upgrade, Kavach system installation for Railways and a private 5G application for a large enterprise in India.
The company said that the upcoming expansion of Bharatnet Phase 3 promises to be a key opportunity for Tejas Network.
Tejas Networks' order book stood at Rs 4,845 crore at the end of the second quarter of the current fiscal.
Earnings per share of the company climbed to Rs 15.75.
Tejas Network Share Price Today
Shares of Tejas Networks Ltd. were trading 14.66% higher at Rs 1,361.85 apiece on the NSE at 10:12 a.m.
Shares of Tejas Networks have delivered a 20% return over the past six months, gaining nearly 50% over the year. The stock has gained 53% on a year-to-date basis in 2024 so far.
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