Tejas Networks at 5% LC

Tejas Networks had hit the 5% LC at Rs.42.80 and today, it opened weaker at Rs.41 and immediately slipped to the day’s 5% LC at Rs.40.70. This comes after days of consistently hitting the UC.

The company declared a dismal performance for Q4FY20 with consolidated net loss at Rs.126.50 crore v/s net profit of Rs.36 crore (YoY). This was on a huge 80% decline in sales at Rs.54.57 crore.

For FY20, the company’s net loss was at Rs.237 crore v/s net profit of Rs.147 crore on a 57% drop in sales at Rs.390 crore.

The company said that it could not ship orders in hand, due to lockdown and logistical challenges, which affected the overall earnings. India which was 79% of total in FY19 revenues, declined by 63%.

The company expects near-term volatility in its business due to COVID-19 and said there could be delays in shipments, delays in new orders and receivables and disruptions/reduction in manufacturing and R&D operations.