Shares of Tejas Networks plunged 8.87% to ₹999 on Friday, January 24, 2025, following the announcement of its Q3 FY25 financial results. Despite delivering a strong year-on-year (YoY) performance, the sequential decline in key financial metrics weighed on investor sentiment.
Key Financial Highlights:
- Net Profit: ₹165.7 crore, a significant recovery from a loss of ₹45 crore in Q3 FY24 but down 39.8% QoQ from ₹275.2 crore in Q2 FY25.
- Revenue: ₹2,642 crore, a 371% YoY increase from ₹560 crore in Q3 FY24, but a 6% sequential decline from ₹2,811 crore in Q2 FY25.
- EBITDA: ₹371.4 crore, compared to an EBITDA loss of ₹7.4 crore in Q3 FY24. However, this marks a 31.9% decline QoQ from ₹545.7 crore in Q2 FY25.
- EBITDA Margin: 14%, up from negative margins last year but down from 19.4% in the previous quarter.
Performance Analysis:
The domestic telecom equipment maker reported strong YoY growth, driven by higher demand and operational efficiencies. However, the QoQ decline in revenue and profitability was attributed to lower sales volumes and higher costs during the December quarter.
Market Reaction:
The sharp sequential decline in both net profit and EBITDA, coupled with contracting margins, led to a steep drop in the stock price during Friday’s trading session.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
