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Tata group stock falls 5% after its net profit decreases by 39.8% QoQ

Leading telecom equipment firm saw a 39.8% QoQ profit decline, a 6% revenue dip, narrowed margins, reduced order book, and rising inventory, despite strong YoY revenue growth.
Tata group stock falls 5% after its net profit decreases by 39.8% QoQ
Tata group stock falls 5% after its net profit decreases by 39.8% QoQ

Introduction:

Leading telecom equipment firm reported a 39.8% decline in quarterly net profit, with a 6% drop in revenue and narrowed margins. Despite strong YoY growth, reduced order book and rising inventory levels impacted overall performance.

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Also Read: Stocks To Watch For Budget 2025

Share price movement of Tejas Networks:

On January 24, 2025, Tejas Networks Ltd opened at ₹1,046.40, down 4.59% from its previous close of ₹1,096.75. The stock reached a high of ₹1,048.00 (-4.46%) and a low of ₹994.05. By 10:07 AM, it traded at ₹1,000.00, an 8.82% decline, with a market cap of ₹17,570.70 crore.

Tejas Networks Net Profit Decreases by 39.8% QoQ:

Tejas Networks Ltd, a Tata Group company, reported a net profit of ₹165.67 crore for Q3 FY25, a 39.8% quarter-on-quarter decline. Revenue also fell by 6% QoQ, with margins narrowing to 9.1%.

Despite a YoY revenue increase of 345.98% to ₹2,497.30 crore, the company’s order book dropped to ₹2,681 crore, below the five-quarter average of ₹7,700 crore. This decline is attributed to the execution of the BSNL deal.

Tejas Networks’ inventory levels increased, contributing to a net loss of ₹45 crore compared to a ₹44.87 crore loss last year. However, YoY revenue growth of 41% from the September quarter showcases some resilience amidst challenges.

Recent news on Tejas Networks:

As of December 10, 2024, Tejas Networks signed a three-year pact with Vodafone Idea to supply optical transmission products, aiding nationwide 4G and 5G rollouts with scalable, cost-effective, and energy-efficient network solutions for enhanced performance.

Stock performance of Tejas Networks for Period of 1 week, 6 months and 1 year:

Tejas Networks saw a 3.48% return over the past week, showing short-term growth. However, the stock experienced a 15.6% decline over the last six months. Over the past year, it posted a strong return of 42.2%, reflecting long-term strength.

Also Read: Best Sectors To Watch For Budget 2025

Shareholding pattern of Tejas Networks:

All values in %Dec 2024Sep 2024Jun 2024
Promoter54.00%55.40%55.50%
FII8.00%9.60%10.20%
DII4.70%4.80%4.90%
Public32.70%30.20%29.40%
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About Tejas Networks:

Tejas Networks Ltd (NSE: TEJASNET) designs and manufactures wireline and wireless networking products, focusing on innovation and R&D. Their solutions serve telecom, utilities, government, and defense sectors across 75+ countries. The company is part of Panatone Finvest Limited.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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