Tejas Networks' share price recorded its worst fall since June 2024 even as the company turned profitable in the December quarter compared to a loss in the same quarter a year ago. However, on a sequential basis, its net profit fell by over 40%.
The company reported a consolidated net profit of Rs 165.67 crore in the December quarter as against a loss of Rs 44.87 crore in the year ago period.
The profit in the reporting quarter was mostly driven by the company receiving a PLI incentive. Its investor presentation said pursuant to the approval received from the Department of Telecommunication under the PLI scheme, the company has recognised PLI incentive of Rs 32.66 crore and Rs 123.70 crore pertaining to the financial year ended March 31, 2023 and March 31, 2024, respectively, under "other operating revenue" in the financial results for the year ended March 31, 2024.
Based on the aforesaid approval the company has recognised PLI incentive of Rs. 144.94 crore for the quarter ended December 31, 2024, considering there is reasonable assurance that the company will comply with the conditions attached to the PLI scheme and that the grant will be received, it said.
The scrip fell as much as 9.3% to Rs 994.45 apiece, the lowest level since Jan 14. It pared losses to trade 8.4% lower at Rs 1,004 apiece, as of 10:53 a.m. This compares to a flat NSE Nifty 50 index.
It has risen 27.8% in the last 12 months. Total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 35.88.
One analyst tracking the stock has a 'buy' rating, according to Bloomberg data.
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