Ladies and gentlemen, good day, and welcome to the Tejas Networks Limited Q2 FY 2025 Earnings Conference Call, hosted by ICICI Securities. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjesh Jain from ICICI Securities. Thank you, and over to you, sir.
Thanks, Sagar. Good evening, everyone. Thank you for joining on Tejas Networks Limited Second Quarter FY 2025 Results Conference Call. We have Tejas Networks management on call, represented by Mr. Anand Athreya, our Chief Executive Officer and Managing Director, Mr. Arnob Roy, Chief Operating Officer and Whole-Time Director, Mr. Sumit Dhingra, Chief Financial Officer, Dr. Kumar N. Sivarajan, Chief Technology Officer. I would like to invite Mr. Arnob to initiate the call with his opening remarks, post which we will have a Q&A session. Over to you, sir.
Yeah. Thank you. So, everyone, welcome to our quarterly investor call. I hope you have received list of the slides that we have uploaded, so I just ask you a few minutes to go through them before our Q&A session. Coming to the first part, so that our quarterly revenues has been, you know, the highest ever in the history of the company, INR 2,811 crores, with a profit after tax of INR 275 crores. And, on order book at the end of Q2 is INR 7,845 crores. So some of the significant things that have happened during the quarter, for our wireless business, we have significantly ramped up our 4G/5G RAN systems additional networks.
This quarter, we did more than 38,000 sites, and cumulatively, we have shipped more than 58,000 sites to the BSNL networks. I think there has been tremendous improvement in terms of scaling up our manufacturing capacities. We also received additional orders for densification of the installed 4G sites in metro circles, and by that, what I mean is that, to increase the coverage of the BSNL, many of the existing sites, you know, the single band sites, have been upgraded to dual bands with the addition of band 28. With that, with the recent deployment, the BSNL will get a lot more additional coverage with the installation of these additional bands.
From a wireless business, we have been selected for PTN and WDM equipment from one of the tier one telcos in India for the capacity expansion for the 4G, 5G mobile networks. We are seeing continued success in the critical infrastructure segment in India, and we have been selected by a leading state power utilities company for their captive SCADA networks, and also been selected in one of the smart city projects in the country. In the international market, we are seeing good traction for our GPON and WDM products, and we've had a few new customer wins in the Americas and in Africa. We received our initial order for the network modernization win in the US, which we had reported last quarter. We have seen the initial orders coming.
This will be supplying this quarter, and we hope to follow it up with additional deals. From a corporate point of view, we completed the mergers with Sankhya Labs in this quarter. So now I'll hand it over to Sumit, our CFO, for walking us through the financial numbers.
Good evening, everyone. For the quarter, we did revenues of INR 2,655 crores. This is 1.8x the previous quarter and about 6.7x the year before. After considering the other operating revenue, which is predominantly PLI incentive, the revenue was INR 2,800 crores. Against this, we did an EBIT of INR 459 crores, profit after tax of INR 275 crores, compared to 77 crores profit in the previous quarter. If we move to the next slide, where we talk about key financial indicators. Our inventory at the end of the quarter was INR 3,411 crores, which is. It's come up slightly compared to the previous quarter and it's expected to further come down as we convert this into finished goods.
Then, receivables stand at about INR 375 crores. The increase is predominantly stemming from higher shipments that happened in this quarter. We also collected about INR 1,400 crores during the period. Working capital has gone up by about 100 crores, and our borrowing position at the end of the quarter was 2,768 crores, with the cash of about INR 583 crores. With this, I will hand it over back to Arnob.
Thanks, Sumit. A little bit more color on our quarter performance and the business outlook. In terms of the revenues that we did, of course, largest segment has been India private, 96% of that, and as we had mentioned earlier, the BSNL shipments since close to three years. We are a private operator, a private company. We've categorized this as India, you know, private revenues. We're still dominated by our shipments for BSNL. The India government business is declining, about 4% of our revenues and decline is year-over-year by 5%. That was mainly because we were at the tail end of contracts.
As you know, that most of the government contracts, as far as tenders are concerned, these are not 100% business, so within the, you know, the initial period there is an increase and then there's a tail end, and then there's the next obviously happens. So international, there is also some declines because of the timing of the POs and the shipments. And however, the key shipments, this is for 2% of our overall revenues. And the key shipments that happened in international were to Africa and South Asia. We had a closing backlog of 1,800 crores. Most of it in India, the 4,600 of that is India, and 200+ in international.
So from a business outlook point of view, the key opportunities, large opportunities, that we are targeting is, one part of it is, the expansion of BSNL's 4G networks on the saturation side, and also for the optical upgrades, for which, you know, trials are ongoing right now. And we also can convert this at some point of time. The Indian Railways tender on the collision avoidance system, where we have completed our POC successfully, and we are waiting for the tender to come out and get bidding to happen. So the largest one is, a private 5G application for a large enterprise in India, where, again, we are in ongoing trials right now. Okay.
From a wireless point of view, a big opportunity for us in BharatNet Phase 2, where we are bidding to the tender with multiple partners. I think majority of the partners have made our equipment into the tender. The other part is the expansion of WDM backhaul networks in the utility segment. Most of our utility customers, for their telecom business, they are seeing significant business growth in their networks and traffic growth. So all of them plan for major expansions in their networks. And thirdly, for the international operators, we see major opportunities in [inaudible], and also network modernization deals with multiple operators in both India as well as Americas.
So, I also wanted to add that, you know, I mentioned a few of the large deals that we have been targeting, but at the same time, there are many other opportunities that we are working on. And especially, there are many other opportunities in wireless that we are targeting, you know, with initial PoCs or design proposals and stuff like that. And I can say that we are finally starting to see a lot more engagement with our wireless products, both in India as well as the international markets.
So, from a long-term business outlook point of view, we still see our outlook being very positive in all the factors that we have mentioned earlier, which are driving growth of network, growth of traffic in the networks, and this leads to traction for our business. All of them continue to be positive and continue to show growth, whether it's in enterprise digital transformation, whether in AI data centers, you know, the deployment of long digital runway of 4G and 5G deployments, not only in India, but globally, and you know, the backhaul networks for those as well. The investments in broadband connectivity that continues at quite a fast rate across the world. Then digitalization of cities, you know, the smart cities, safe cities, and applications like that.
The modernization of utility networks, and modernization of not only utility networks, but also internationally, we see old TDM network infrastructure, you know, large infrastructure that has been deployed, modernization of those networks also. So all of the applications that we target with our WAN and backhaul products, with our multi-terabit packet and packet transport switching and optical products, and our 5G RAN edge computing products, there is. We see a lot of traction for most of the applications that are driving this network traffic growth across the world. So with that, I'll stop over here, and we can take some questions. We can do a Q&A session right now. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aman Soni, from Invest Analytics Advisory LLP. Please go ahead.
... Hi, am I audible?
Yes, sir, please go ahead.
Good evening, sir. Congrats for a good set of numbers. Just one question on the kind of execution that happened in this quarter. It is quite significant, right? So, my question is, do you see, like, this kind of execution is going to sustain in the upcoming quarters for next, say, three to four quarters, sir?
Execution in terms of our RAN shipments to BSNL , you mean?
Execution in terms of top line and bottom line, kind of margins you reported in this quarter?
As you know, we don't give revenue guidance, you know, quarterly guidance kind of things, but I think people are fairly knowledgeable, and I think understand our business quite well, as well as our business pipeline order book, so without you know, we don't give any business guidance about yeah.
Thank you very much.
Thank you. The next question is from the line of Sohan Joshi from ASC Consultants. Please go ahead.
Good evening, sir. Am I audible?
Yes, Sohan, you are audible.
Congratulations for a great set of numbers. My first question is, in the previous con call, you said that BSNL is going to come up with a nationwide tender for 5G in high-speed performance backhaul of 3.5 gigahertz band. Can you please share any update whether any proof of concept is going on with regards to this?
Yeah. So yes, there are. So, not for the 3.5 gigahertz band yet, but for the 5G upgrades, the POC that we are doing right now is for the 5G upgrades to the 4G bands that we have shipped.
Okay, so that is for the 40% sites under 2,100 megahertz, right? Basically the proof of concept which is going on currently.
Yeah, not only in that, but also in the other band as well.
Okay. So, the tender is out, or, I mean, when the tender will be floated, this part of the project?
No, no, this 5G upgrade is part of the current tender that we are executing right now.
Okay. Okay, got it. Got it.
It's not for the three point five gigahertz band. It is going to come later.
Okay, got it. My second question is, does CG Power have acquired the radio frequency components from Renesas Electronics? So can you please explain what will be the implications of this on our partnership with Renesas for designing and development of semiconductor solutions for 4G, 5G RAN?
See, we are users of the semiconductor components, you know, we are not designers of the semiconductor components which goes into 4G, 5G RAN. So I think whatever partnerships that you're talking about is going to be, you know, suppliers for the radios which are being designed for 4G, 5G. And so that's what the integration is. I mean, it's not that we are not in that business of semiconductors for radios.
So is it fair to assume that, going ahead, since we have already done localization of most of the components, going ahead, there won't be any major imports from our side, and since majority will be local... components will be localized?
No. I think, see, many of the key semiconductor components are still imported because they come from tier-one semiconductor vendors across the world, and a lot of it is in the U.S. But, there are other components of the radio, a lot of it is actually localized, and for those parts, we source from India. But, I think the key semiconductors are still imported components.
One last question.
Not yet. We are not yet manufactured in India. I think at the time, I mean, you hear a lot of noise of semiconductor fabs coming up and all that out there. I think when they become real and, and when the production starts over there, and relevant, chips that we use for our wireless broadband products, when they start getting manufactured in India, then of course, we will, definitely source for them, but that's still going to take some time.
Okay, one last question. Now, since a lot of talks are going on with regards to satellite communication, and BSNL have also started testing direct-to-device solutions, are we in talks with BSNL or any other Tata Group companies or any other internet service provider for satellite communication devices of Sankhya?
Yeah, we are talking to a few potential customers, but again, these are long lead times. These things won't happen overnight. So we are talking to a few of the other providers and see, you know, where we can take the satellite communication product, the vehicle tracking system that we have, you know, built, and see if we can use it for other applications.
So the proof of concepts are going on with regards to these new devices, right?
So the Vehicle Tracking System is deployed. I mean, you know, it is, actually, not proof of concept, it's actually shipped.
Okay, got it. Thank you. All the best for the upcoming quarters.
Thank you. Bye.
Thank you. The next question is from the line of Advait Lath from Nippon India Mutual Fund. Please go ahead.
Yeah, so congrats on a great set of numbers and all of this.
Oh, yes, thank you.
Yeah, so just wanted to ask, how has our international order pipeline grown or declined year on year, or what is the color there in terms of what you think and how it has shaped up?
Yeah, I think this quarter has been a bit soft for our international business, especially from many of our rental customers, but they also are coming cycles. But importantly, I think we've been able to win a few more logos, few more new customers, which are strategic wins in international territories. So we're looking at that as you know as a very positive sign as we expand our footprint across many more customer base. So that's how it's, how it went during the quarter.
Right, sir. And, on, actually two components, coverage, sir. Coverage is a big, opportunity, so do you think, we are well-placed in it because of the wireless, aspect of it?
Yeah. So as of now, given that we've had very successful POC, I think we are well-placed over there. It's our products. We meet the requirements that the customer wants.
Got it, sir. And just last question from my side. The 5G upgradation, you said it's already baked in, into the current tender. What about the incremental 5G deployment? That would have to be tendered again, and that timeline is not clear, right?
Yeah, yeah, yeah. So that timeline is not clear. I mean, we are expecting it to happen, you know, later in the later quarters. But right now, the first part of it is the IT upgrade in the current networks, in the existing bands, and that's the current tender, and we don't yet have the clear, so we're doing the POC right now.
So that would be implemented in FY 2025 itself, or that will take a long bit longer?
Yeah, I don't think it will go to the execution in all of it in FY 2025. I mean, we think that it will take some time for the POC to get completed and, you know, orders to come and the execution to happen, so I think it will be a few quarters.
Okay. Got it. Thank you, sir.
Thank you. The next question is from the line of Sanjesh Jain. Please go ahead.
Yeah, thanks, thanks for taking my question. So I have a couple of them. First, on this coverage project, are we involved into the equipment for anti-collision or the 4G or LTE deployment on seven hundred, which is the same band we are putting for BSNL for the railway as well? What is the part within the coverage are we playing the role?
Yeah, it's only the wireless communication network.
Okay.
Uh, yeah.
Got it. That's very clear. Second, on the closing backlog, which stands at close to INR 71 billion, can you just help us in breaking what is the BSNL's component within this INR 71 billion, and how has non-BSNL component has grown QoQ and YoY?
Yeah. We actually don't disclose customer-wise or any of the segment-wise like that. So, I think the closing backlogs, we actually INR 4,845 crores, you may have seen the presentation. So we only split it between India and international, and don't disclose it customer-wise or product-wise.
It's okay. It's okay. That's not a problem. And on the last question, how has been the performance of the network? Because we have been on now probably at a risk of deployment. How has been the performance of the network, which has been rolled out on our network? Has it been same as what was proven during POC?
The performance actually has been, you know, pretty good. So, I mean, as I said, in the, you know, we shipped close to 50,000 sites, and a lot of it is actually being installed and commissioned. And also, I think you must have seen on the press that, you know, there are a lot of BSNL is getting lot more customer traction. A lot of folks are coming back. So far, so good. I mean, the radios have been performing, you know, very well. We are closely monitoring, you know, so again, we've been shipping it now for more than a year. So far, so good, and we'll continue to monitor.
Got it. Just one last question. Are we any way also looking into getting into the maintenance or O&M part of the network, or we will restrict ourselves to the supplying equipment?
No, I think, maintenance is, and support is part of, the tender. And, you know, there is, actually after three years, we have the support agreement, if you will, and, that will come after, the three-year period of, you know, of deployment.
So when we say closing backlog, does it include the O&M part as well?
No. Not as of now.
That is only the equipment part of it, right? So O&M will be a recurring business, and it will kick in from year three.
That is correct.
Got it. Got it. That's very clear, very helpful. Best of luck, and thanks for taking the questions.
Thank you.
Thank you. The next question is from the line of Ashish Shriram Thavkar from JM Mutual Funds. Please go ahead.
Yeah, thanks for the opportunity. So with this Cisco, you know, they're setting up a facility in India, and simultaneously, you know, we also have a center of excellence for wireless communication. So at any point in time, could we get engaged with Cisco? How should we read it?
No, So I think, I think these two are unconnected. Cisco manufacturing in India, and, this, doesn't connect us in any way with Cisco. Our wireless, lab of central excellence is for our research and development efforts in, in wireless. And, Cisco is more of, localizing their manufacturing over here, and these two are not connected, these two issues, right?
Yeah, fair enough. So and on coverage, I think there's some shifts in timelines from the government side. So, how long do you see the before we, you know, get, like, before you actually get to see some revenue traction? Is it a delayed opportunity?
Yeah, I think it is. Tender itself is running a bit behind schedule. Yeah, even though I think the testing and releases and all are done, but I think the tender itself is running a little behind schedule. But it's still scheduled for this financial year, as of now.
Okay. And what about BharatNet phase two then? The tenders are closed. Any timelines when can the outcomes come out?
Well, you know, it is definitely so far more advanced than Kavach, where all the bidding has happened, tendering and bidding has happened. So, I mean, we expect to see from what we know, I think there's a lot of background work happening in the tender evaluation. So maybe a few several weeks from now, depending on you know how the evaluation goes, and then the time is there, we'll obviously the results coming out.
Okay, fair enough. So lastly on this, Vodafone, you were also engaged in a dialogue with Vodafone. Any success there or potentially any business could come our way?
I don't think we have disclosed any particular customer by name, as you see the going on, except for BSNL and the railways. But yeah, I think there are several operators in the country where the POCs are going on, and these POCs are going through a little extended cycles because as and when it comes, there are additional feature requests or some improvement requests which keeps updating and all. So it's a longer POC cycle, and it is going well, and we hope to see business coming at the end of it. It is going to be a little longer process.
Perfect. Just one last, if I may. So this international business, if you could like share your perspective, like three years out, revenue to international business, is there like anything in terms of quantum of order book that you want to build for those markets? Is there some number which is there in your mind?
International business?
Yeah. What in-
International business in general or for any, for wireless, or what was your question? It's unclear.
It's in general for wireless, probably for our RAN equipment and the equipment that we supply.
Yeah, yeah. I mean, it's, it is, you know, hard to quantify, and we don't give guidance. But we do. We are starting to see a lot of good traction and bidding opportunities and POC opportunities coming up. So as I mentioned that we are starting to see, you know. Initially, our focus was mainly making BSNL successful and doing some of the local trials and POCs and opportunities in India, whether the private operators or government or stuff like that. But now we are starting to engage a lot outside of India as well, and seeing, you know, a lot more opportunities opening up for bidding and for, you know, POCs and things like that. So, but it's, you know, hard to quantify numbers at this stage.
Perfect. That was helpful, and all the best.
Thank you.
Thank you. The next question is from the line of Jinesh Shah from RSPN Ventures. Please go ahead.
Yeah, hello. First of all, congratulations on your numbers. So my first question would be that, as of end of quarter two, we had a major order book from BSNL, and right now we are targeting a couple more opportunities like Kavach, BharatNet and everything. So I just wanted to understand that, what might be the expected time from all the opportunities that we are targeting, and also, if we get it positively, if we get the contract, then what will be the expected execution time that we will be starting the equipment supply and everything, if you can provide a guidance on that?
Yeah, it's, I think, the time is something we don't really disclose, but more and also hard to establish across all of them. You know, for the tenders that have come out from BharatNet and all, I think, you've seen a lot of public reports on the, you know, tenders and size and all, so that information is available in public. For other opportunities, since it's really, we do not know the scope of the tender. We have just high-level guidance on the number of sites, the number of stations and things like that. Just a rough idea, but again, you know, it's hard to speculate, and we don't speculate on those numbers. There was a second part to your question also.
Yeah. So my second part was that hopefully to get the opportunities, then what will be like the execution timeline?
Yeah, yeah, yeah, timeline. Yeah, they all depend on when the tenders get awarded and the supply timeline that they set up. And since these are many of these are very large tenders, I think there will be a process and it will take some time in terms of tenders initiation and bidding, evaluation, and all. So I think we expect that many of the deals will actually roll over to the next financial year.
Okay, exciting . So my second question would be regarding the borrowings that we have in our balance sheet. So right now, if I can see that it's around almost 3,000 crore now, that Tejas has been getting good numbers. So, like, and even if in last phone call that we had discussed that probably by the end of this financial year it will start to get results. So right now, like, are we planning to just reduce the pressure on working capital cycle?
This is in borrowing and-
Yeah.
Yeah, so I think the point we made in the last call also, I think it broadly continues. As the project execution picks up or moves towards completion, we'll see the working capital intensity coming down. This obviously is also linked to other projects, and as and when they get added to the order book. So, the till the time, you know, you have clarity on some of those projects, hard to comment on how the working capital cycle plays out.
Okay, fair enough. And my last question would be that if I'm correct, that BharatNet order is around 65K approximate budget, and the. So like, and Tejas is specifically in supplying of equipment. So I can conclude that specifically with respect to this particular project, it's around 6,000 CR that will be eligible for that, right?
So I think you're calculating at 65,000 crore as officially for this phase, and then maybe you're taking 10% of that. So I think you know, I would say in the ballpark, but you know, could be lower and all. I mean, these are the combination of that and also depends on... There are many other equipment, right? I mean, all of it is not addressed by our portion of the equipment in the network. There are other equipment also, right? But yeah, ballpark, you can say 8%-10% of the overall spend comes into it. You know, the rest of it is fiber and other infrastructure as well.
Okay. Okay. Thanks a lot.
Thank you. The next question is from the line of Aditya Mehta from GK Capital. Please go ahead.
Yeah. Hi, sir, and congratulations on great set of numbers. So my question is with regards to private players in the domestic market. So there has been a lot of news flow regarding network upgradation deals being awarded to our global competitors. So just want to understand, what is it that we are missing and we are not able to get a share of that pie from the private players?
Yeah, I think most of them, for their upgradation, have gone with their existing vendors. As I said, we were all focused largely, up to now, you know, the BSNL project. At the same time, we started, you know, POC last quarter with some of the other operators and, you know, the private industries as well. I would say because they are in a, you know, hurry to expand, most of them have gone with the existing vendors, with the existing networks and so on. But at some point of time, later on, when we, after we complete our business successfully, I think we will certainly expect to get some opportunities in those efforts. This will still have a long phase of deployment.
So what is the winning point we have over them? Because if you see, it will be easy for them to integrate the existing equipment with the existing band only. So what is the winning point that we might slice in a share from private players?
I think it will be, you know, equipment will be quite competitive, and it will support most of the bands or almost all of the bands that are getting deployed in India. So a wide range of bands will also be supported. We have a variety of single band, dual band, triple band radios, you know, quite a wide list of products. And also from a architecture point of view, our RAN, which has, you know, the BBU with integrated transport and things like that, because it reduces the world's off-the-shelf solution. I mean, those are some of the features that we think will have a differentiator with respect to global competition.
Just one point. Whether cost-wise we are efficient from our competitors from the global competitors or not?
Let's put it this way, that, it is not, you know, an apples to apples cost kind of a thing, but the overall solution, the total cost of ownership when, you know, when we, if you combine our radios and all the things that I talked about, the multi-band radios and other BBUs with, integrated transport and a single BBU doing 4G, 5G, I mean, broadband architecture such that the total cost of solutions, works out, will work out better.
Okay, so any timeline for this POC when it will complete it?
It is going on right now, so I think it will take some time, and maybe another quarter or something like that, and another few pieces.
Got it. Got it, and secondly, looking at our current order book, it seems that we will exhaust it within this financial year itself, so till now, after the BSNL order, when we haven't seen any major addition to our order book, so how do we see maintaining our revenue flow going ahead in the absence of any major addition?
Well, as I said, we don't give, you know, future revenue guidance, but we give a flavor of the opportunities, large opportunities, opportunities that we're targeting that are in front of us, which look very positive, which is positive for us and you know those are the ones that are going to fill our backlog in our order book and that's where the future business is going to come from. It's hard to pinpoint a particular number and, you know, how the business is going to get replicated.
So do we see any major addition in order book in next six months or within this financial year?
Again, hard to give timelines, but I'll just go back to the slide where we talk about the key opportunities targeted. It is the expansion of BSNL's 4G, the 5G upgrade in the current plans, and the other one, right? I think what I say in the rail and the fiber expansion of the main backhaul. All of them are actually fairly large projects, right? I mean, of course, the BharatNet kind of a thing, right? So, you know, once they materialize, I think that's the time we'll see our order book really expanding in terms of large numbers.
But again, I just want to tell you that, you know, we're not giving any guidance over here, and these are also all opportunities where we are well positioned, but we have not really won one in our hand to really, you know, give guidance about.
Got it. And just last question: Our tax rate is a little higher, if we see. So why is it, sir?
Sorry, can you say higher, how are you looking at that?
So looking at new tax regime, compare it with new tax regime, it seems a little bit higher, around 2% around so.
We are not migrated to the new regime. We have losses accumulated over the past, so we're still in the old regime of tax.
When do you plan to shift to the new regime?
That will depend on, you know, various parameters, including how and when we absorb our losses.
Okay.
And you
Got it. Got it.
Yeah.
Sure. Thanks, and all the best for the future.
Thank you.
Thank you. The next question is from the line of Krishna Heda from The Investment Forum. Please go ahead.
Good evening, sir. Am I audible?
Yeah, a little. Speak a little louder.
Yes, sir. First of all, congrats on the excellent set of numbers. How does the company plan to accelerate international sales, given that international revenue contribution remains small at 3%? Are there any new geographies or contracts in the pipeline?
As I said, we have been investing and continue to invest into our sales channels and partnerships into the new, the targeted geographies, which is North America, Europe, Middle East, Asia, and Middle East, Africa, you know, Asia and so on. So our strategy for growth is, you know, investing in more and more sales channels and partnerships and participating in as we get more visibility. We are participating in a lot more trade shows to for building our brand and, you know, getting more notice and winning whatever customer deals comes along to build our reference in those geographies, right?
So this is a little long process, which goes on, and there have been significant engagements, you know, significant opportunities that have also come up, which are going through the process right now. But it is a long way. It's a long process of building your brand, building your channels and, you know, getting to success, right? So and we are going through all of that right now.
Okay. Thank you, sir. Thank you.
Thank you. A request to all the participants, please restrict your questions to two per participant. If you have any follow-up questions, you can rejoin the queue. The next question is from the line of Komal Iyer, from NBG CFO Services. Please go ahead.
Good evening, sir. I want to know, you have mentioned in your press release that you have made record deliveries of 30,000 plus 4G sites. So will you be able to maintain these kinds of deliveries for the next two quarters or exceed them?
Once in line, that will scale to this capacity and beyond.
Yeah. So, yes, we have actually, we have increased capacity, so we will have the ability to deliver.
So we will be able to exceed the thirty thousand plus number for the next third and fourth quarter?
So I can't reveal exact numbers, but let's just say that we have the ability to deliver, if we get.
Okay. That's it. Thank you, sir, my side.
The next question is from the line of Rajesh Khattar from RK Capital. Please go ahead.
Good evening, sir. I have two to three small questions. You have shared your order book. Can you also share your pipeline numbers, as in, like, how many tenders you have bid for, what is your confidence level in winning the tenders, and the pipeline closing cycle?
No, unfortunately, we don't do that.
Okay, then the next question. Like, historically, the business has been quite up and down in the last four years. In one quarter or year, suddenly there are operating losses, and then in one quarter, suddenly you have bumper numbers, so going forward, I know you don't give guidance, and I'm not asking for numeric guidance, but going forward, like, will it be more consistent and less volatile? What will be the business trajectory going forward? Like, you can just give a qualitative answer without getting into specific numbers, so as investors, how should we model the business?
Well, if you see our business is still dominated by large projects. So when that comes in, and large projects are still you know, in terms of a total business component, I mean, they still dominate. So there will be periods when you see business wins coming, you know, for large projects and take it executed over multiple quarters, and the other business will become whatever comes from the private and the international kind of a thing. So while you know, big projects dominate, I mean, there is a possibility of seeing you know, a spike in terms of revenues, and you know, that's the fact, right? I mean, that's the nature of our business as of now.
Okay. Like, is it possible to give any best case scenario, or you will like to avoid that also?
No, not that. I think the way we should probably see the business is from an overall annual point of view, right? I mean, quarter over quarter, while it's our business is dominated by large projects and very big size, but I think overall, year over year, the business is what you probably speak to tomorrow.
Okay. So my last question, like, when you have the capacity, like you, the previous participant, asked you about your capacity to deliver thirty thousand sites, and when you do have the capacity, you said, so what can stop you? What could go wrong, like, let's say, in the next quarter or the next to next quarter, where, let's say, you don't, I mean, do thirty thousand sites, what can go wrong?
In terms of manufacturing, there is no issue. As long as the, you know, the order keeps coming, the way we have anticipated and the way we see it, I don't think we have any issues in terms of being able to manufacture them.
Okay. So, I mean, in terms of delivery or revenue, like, what could go wrong? I mean, just trying to understand, like, why will it not translate into the numbers or what can happen there?
You know, what could go wrong in terms of manufacturing, supply chain? I mean, if we have the order books, we don't, you know, I mean, unless there are unforeseen events in terms of supply chain or any other thing that happens in a, you know, a normal business cycle. You know, I don't think any other factor really comes in, because we have really worked hard in setting up this kind of a manufacturing capacity, manufacturing line, where we can ship at large numbers with high quality. So as far as what we can see, as far as the business is there, I don't really see any issues in terms of not being able to deliver, barring any unforeseen events that I really can't predict right now.
Okay, sir. That's helpful. Yeah. Thank you.
Thank you. The next question is from the line of Agam from Raj Trading. Please go ahead.
Hello?
Yes, Agam, your line is unmuted. Please proceed.
Thanks a lot. Most of my questions are answered, but quick thought. My question, but the answers are not clear. So can you share your thoughts, your closing order book is already over the quarter. So I believe that lot of projects will take time and timing. So what, whatever thoughts you can share. So what can we expect in the next six months to one year? What orders you build or whatever you're looking at potentially, whatever you can share. Just some color, color on it.
Yeah. Yeah. So, you know, as I mentioned, I mean, I talked about some of the key opportunities. I think that should give an idea of the business we targeted and how the order book is going to get filled up. And, you know, again, driven by partnership, expansion of backbone network, expansion of BSNL, 5G by 5G network, you know, upgrades and things around that. I think most of the large opportunities I have highlighted, so that is, those are the projects that are going to come into expanding our order book going forward.
So do you see them, do you see all things progressing well? I mean, like, in next six months, we should hear a few things from you currently from where we are ?
Yes, these opportunities are all real, and apart from that, I think as I mentioned at the end of my presentation, all the other drivers which are causing, which are, you know, particularly driver for our business, which are causing expansion of network, growth of data traffic in networks and the applications of expansion of say, 5G networks and broadband expansion and data centers and stuff like that. I mean, all of those factors still show no signs of slowing down. They are still growing and growing at a very, you know, fast level, so all the drivers for our business indicators still look good, so you know, that's why we are bullish about our business.
Got it. Thank you so much, and wish you the best.
Thank you.
Thank you. The next question is from the line of Dhruv Shah from Ambika Fincap. Please go ahead.
Yeah, thanks for the opportunity, and congratulations on a really great set of numbers. My question is for Anand. So you have come from Juniper, who is a leader in enterprise business. So my question pertains to why are we seeing a big opportunity in the enterprise side of the business? Because I couldn't see that on the business opportunity side. So if you can just allude to that part, because the capital requirement for Tata Group companies would also be in a sizable portion for us.
So look, while we don't talk about the roadmap, it's, you know, the what I really want to say is that we want to build a portfolio that's going to serve both the enterprise in both wireline and wireless. So that's the vision and mission of Tejas. Again, we want to build the next networking OEM, become OEM company out of India, and we will serve any and every market in other sectors, including the group.
Fair enough, sir. But, are we trying to replicate the products which are there in Juniper and Tejas as well?
Look, I can't comment. As I said, I can't comment on the folks, you know, roadmaps. You know, when we launch it, you will see.
Oh, fair enough, sir. Thank you for the opportunity, and all the best.
Thank you. The next question is from the line of Pratap Maliwal from Mount Intra Finance. Please go ahead.
Hi, am I audible?
Yes, Pratap, you're audible.
Hi, sir, thanks for taking my question. So, I heard you said that the operations and maintenance part start after a period of three years. So assuming we complete the supply of equipment, maybe by FY 2025 end or Q1 FY 2026, so when does the contract for O&M come in?
So it will come in from three years after they are commissioned. So, it is not that it starts right at the end of the last deployment. It's, you know, for every different circle or every different deployment, I mean, as long as, after their three-year period, their maintenance cycle will start.
Okay. Understood. And sir, you said that one particular tender was running a bit behind schedule. I just missed that part. Was it the Kavach tender or the BharatNet tender? Which one is running a little bit behind schedule?
Yeah, the Kavach tender is running a bit behind schedule.
Okay. Okay, understood. And sir, just one last thing. So I see in the presentation that we received some additional orders, regarding that network densification part. So was this part of the original, INR 7,500 crore order, or is it, you know, something additional in case of that? And do we foresee maybe some additional sites that BSNL would require for which we can get further orders as well?
Yeah, so this is part, as I said, part of the tender scope, but not exactly part of the, you know, the original plan network, right? This is kind of an add-on to the original, plan of the network, because as and when the network is deployed and they are seeing more opportunities and, you know, more customers, they are, kind of, enhancing their plans, as I would say, to upgrade the existing sites, from the original plans, to add, more bands, to increase the coverage, and capacity, so that's what is happening.
So technically, it is part of the same tender that we have won, but the specific plan in terms of the deployment of a particular band in a particular site, I think that is something which is evolving and it is causing, you know, exciting to our business as these additional bands are coming up. So this is nothing to do. This is not connected to the additional sites for the saturation sites for the additional coverage.
Okay. So is there any timeline? Because there's one prevailing line of thought that, you know, maybe hundred K sites might not actually suffice for BSNL to have a nationwide 4G rollout, looking at the kind of networks that maybe some of the other players have. So is there any plan in the pipeline for some additional sites, maybe to kind of have a proper network rollout coverage?
Yes, I think that's what we mentioned in terms of BSNL. Our future opportunity, large opportunity plus is expansion of BSNL's 4G network. So that is exactly what you're talking about. But beyond the initial hundred thousand sites, BSNL is looking at at least twenty thousand plus sites for expanding their footprint across the country.
Understood, sir. Okay, sir, thank you for taking my questions, and congrats on a good set of numbers.
Thank you.
We have time for one last question, if there are available.
Sure. Thank you. The next question is from Pankaj Kumar, who's an individual investor. Please go ahead.
I, hello, are you able to hear me?
Yes, sir. Please go ahead.
Yes, Pankaj.
Yeah, so I wanted to know, what is the amount of order book won in the last quarter? What is the order mix, in terms of India government, India private, and international? And can you give some color on what kind of orders have been won by your company in the last quarter?
Hello, are you talking about the new orders won during the quarter?
In Q2. I'm talking about Q2, the orders won.
We don't really split to that level. I think the orders won and the backlog will be categorized as India and international. So and whatever is there is... And we kind of don't disclose the individual bookings per quarter. We don't disclose those numbers, but we kind of give a picture of the overall backlog and some color regarding domestic and international on that.
Okay. Thanks a lot.
All right.
Thank you.
Thank you.
Look, as part of closing, again, I want to thank the team. The team has executed really well. We've delivered a lot on our orders, and we will continue to stay focused and execute as we deliver and also as we build our portfolio. You know, and in the process, hopefully gain, you know, more customers, more markets, and build a healthy business. Thank you.
Thank you very much. Have a good night.
Yeah.
Thank you. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.