Tejas Networks slumped to a new 52-week low today at Rs.105.10, going down almost 18.5%, not too far from its 20% LC for today at Rs.103.20.

The market is reacting to its poor show for Q1FY20. On a 32% (YoY) decline in consolidated revenue at Rs.157 crore, the company’s net profit slipped 87% to a mere Rs.6 crore.  The biggest undoing for the company was that it depended too much on govt projects and when that did not come through, it has impacted the earnings.

The company designs, develops and sells high-performance and cost-competitive networking products to telecommunications service providers, internet service providers, utility companies, defence companies and government entities in over 70 countries.

In Q1FY20, share of Govt-based revenue fell to 15% of revenue, a sharp decline from 55% in FY19.

The company, in its IPO had issued shares at Rs.257/share.