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TEJAS NETWORKS 2022-23 Annual Report Analysis

Wed, 31 May

TEJAS NETWORKS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

TEJAS NETWORKS Income Statement Analysis

• Operating income during the year rose 67.0% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and down at 2.1% in FY23 as against 14.6% in FY22.
• Depreciation charges increased by 59.5% and finance costs increased by 376.5% YoY, respectively.
• Other income grew by 163.2% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year grew from 11.4% in FY22 to 4.0% in FY23.

TEJAS NETWORKS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	5,506	9,196	67.0%
Other income	Rs m	433	1,140	163.2%
Total Revenues	Rs m	5,939	10,336	74.0%
Gross profit	Rs m	-805	-189	NA
Depreciation	Rs m	768	1,225	59.5%
Interest	Rs m	32	152	376.5%
Profit before tax	Rs m	-1,171	-427	NA
Tax	Rs m	-544	-62	NA
Profit after tax	Rs m	-627	-364	NA
Gross profit margin	%	-14.6	-2.1
Effective tax rate	%	46.5	14.6
Net profit margin	%	-11.4	-4.0

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TEJAS NETWORKS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 4 billion as compared to Rs 2 billion in FY22, thereby witnessing an increase of 154.7%.
• Current assets rose 52% and stood at Rs 27 billion, while fixed assets rose 258% and stood at Rs 9 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 36 billion as against Rs 20 billion during FY22, thereby witnessing a growth of 78%.

TEJAS NETWORKS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	15,635	28,958	85.2
Current Liabilities	Rs m	1,674	4,264	154.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	19,988	35,599	78.1
Current assets	Rs m	17,497	26,673	52.4
Fixed Assets	Rs m	2,491	8,926	258.4
Total Assets	Rs m	19,988	35,599	78.1

TEJAS NETWORKS Cash Flow Statement Analysis

• TEJAS NETWORKS's cash flow from operating activities (CFO) during FY23 stood at Rs -4 billion, an improvement of 2,093.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 10 billion, an improvement of 19% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 378 million from the Rs -59 million net cash flows seen during FY22.

TEJAS NETWORKS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-173	-3,801	-
Cash Flow from Investing Activities	Rs m	-8,278	-5,814	-
Cash Flow from Financing Activities	Rs m	8,394	9,989	19.0%
Net Cash Flow	Rs m	-59	378	-

Current Valuations for TEJAS NETWORKS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -2.2, an improvement from the EPS of Rs -5.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 674.9, stands at -409.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.9 times, while the price to sales ratio stands at 12.4 times.
• The company's price to cash flow (P/CF) ratio stood at 113.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	48.1	54.6
TTM Earnings per share	Rs	-5.5	-2.2
Diluted earnings per share	Rs	-3.7	-2.2
Price to Cash Flow	x	511.2	113.2
TTM P/E ratio	x	-114.7	-409.1
Price / Book Value ratio	x	2.7	3.4
Market Cap	Rs m	41,650	97,495
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TEJAS NETWORKS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.3x during FY23, from 10.5x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at -1.8x during FY23, from -35.7x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at -1.3% during FY23, from -4.0% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at -0.9% during FY23, from -7.3% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at -0.6% during FY23, from -3.0% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	10.5	6.3
Debtors’ Days	Days	19	20
Interest coverage	x	-35.7	-1.8
Debt to equity ratio	x	0.0	0.0
Return on assets	%	-3.0	-0.6
Return on equity	%	-4.0	-1.3
Return on capital employed	%	-7.3	-0.9

To see how TEJAS NETWORKS has performed over the last 5 years, please visit here.

TEJAS NETWORKS Share Price Performance

Over the last one year, TEJAS NETWORKS share price has moved up from Rs 428.9 to Rs 674.9, registering a gain of Rs 246.0 or around 57.4%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

(To know more, check out historical annual results for TEJAS NETWORKS and quarterly results for TEJAS NETWORKS)