Tejas Networks receives Rs 7,492 crore purchase order from TCS; stock jumps over 6%
At the time of filing this report around 10:30 am, Tejas Networks shares were trading at Rs 848.80 apiece, up 4.14 per cent.
Tejas Networks shares jumped on Wednesday (August 16) after the telecommunications service provider got a purchase order from Tata Consultancy Services (TCS). The stock climbed over 6 per cent and touched the intra-day high of Rs 869 apiece on the BSE. The scrip was hovering near its 52-week high of Rs 893. The stock settled 3.4 per cent higher at Rs 842.8 apiece.
"We hereby inform you that Tejas Networks Limited (the "Company") has executed with Tata Consultancy Services Limited (the "TCS"), a related party of the Company, the Master Contract towards supply, support, and annual maintenance services (the "Master Contract"), for Radio Access Network (the "RAN") equipment for BSNL’s Pan-India 4G/5G network," the regulatory filing read.
Further, it added that, as a part of this contract, the company received a purchase order (the "PO") for an amount of Rs 7,492 crore (excluding GST) from TCS towards the supply of 4G/5G RAN equipment for approximately 100,000 sites.
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At the time of filing this report around 10:30 am, Tejas Networks shares were trading at Rs 848.80 apiece, up 4.14 per cent. The stock snapped a four-day losing streak and climbed in Wednesday's trading session. The market capitalisation of the company stood at Rs 14,375.74 crore.
Tejas Networks Q1 results
The company posted a loss after tax of Rs 26 crore against a loss of Rs 6.68 crore a year ago. The net revenue stood at Rs 188 crore against Rs 125.63 crore logged in the year-ago period.
"The loss after tax was primarily due to continued investment in R&D for growth and increased component costs due to expedited fees and spot buys to ensure critical customer shipments," said Anand Athreya, Managing Director and CEO of Tejas Networks.
Tejas Networks share price
In 2023, so far, the stock has gained over 40 per cent against the Nifty50's rise of nearly seven per cent.