Tata Stock Rockets 20% After Revenue Jumps 343% In Q4

Tejas Networks, a domestic telecom gear manufacturer and part of the Tata Group, saw its shares surge 20% on Tuesday. The jump in stock price followed the company’s announcement of a net profit of ₹146.8 crore for the fourth quarter ending March 31, 2024, compared to a net loss of ₹11.5 crore in the same quarter of the previous year.

Tejas Network Q4 Performance: The company detailed in a regulatory filing that its revenue from operations for the quarter soared by 343.40% to ₹1,326.9 crore, up from ₹299.3 crore in the same period of the previous fiscal year. This significant revenue increase stemmed from the company managing to secure critical long-lead components, which allowed it to speed up the delivery of several large orders, particularly for BSNL 4G RAN.

During the fourth quarter, Tejas Networks reported a substantial increase in inventory, reaching ₹3,738 crore. Trade receivables stood at ₹1,458 crore, with ₹650 crore collected within the quarter, contributing to a notable rise in working capital by ₹1,519 crore.

See also: Small Cap Tata Stock Falls 3% Despite Slimming Losses In Q4

Despite maintaining a cash reserve of ₹641 crore, the company had to increase borrowings to support its working capital needs, resulting in total liabilities of ₹1,744 crore by the end of the quarter.

Additionally, the company received ₹32.66 crore in incentives for fiscal year 2023 under the Production-Linked Incentive (PLI) Scheme for telecom and networking products. Tejas and its subsidiaries also secured 22 new patents in the fourth quarter, bringing their total to 335 patents.

Price Action: Tejas Network shares were locked in 20% upper circuit at ₹1,088.25 on Tuesday morning shortly after the bourses opened up for business.

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