Tejas Networks Shares Dip 1.5% Despite BharatNet Phase III Partnership

Tejas Networks , a key player in the Indian telecom equipment sector, saw its shares decline by 1.5% on Thursday, continuing a downward trend following its September quarter results. This comes despite the company's recent announcement of a significant partnership for the BharatNet Phase III project.

BharatNet Phase III Project Partnership

Tejas Networks has begun shipping its IP-MPLS routers and management systems for the BharatNet Phase III project, covering Madhya Pradesh, Dadra Nagar Haveli, Daman and Diu, and Uttarakhand. The company is collaborating with Nagarjuna Construction Company (NCC) to upgrade the middle-mile broadband infrastructure across 30,841 Gram Panchayats (GPs) and 411 block locations using IP-MPLS technology.

Manoj Penmetcha, Director (Projects) of NCC, emphasized the importance of this partnership, stating, "The creation of a robust, reliable and scalable middle-mile network for BharatNet is critical to ensuring high-quality broadband to every rural citizen."

Stock Performance and Financial Results

Despite this positive development, Tejas Networks' stock has been under pressure. Here's a snapshot of the company's recent performance:

Metric	Details
Recent Stock Movement	1.5% decline on Thursday
Trading Trend	Fallen in 3 out of the last 4 sessions
Quarterly Performance	Third consecutive quarterly loss
Reasons for Loss	Lower revenue, provisions from manufacturing process losses, warranty, and inventory obsolescence
Nifty Smallcap Index	Worst performer
Stock Decline	55% since Nifty 50's record high on September 27, 2024

Company Outlook

Sanjay Malik, Chief Strategy and Business Officer of Tejas Networks, expressed optimism about the BharatNet project, stating, "This win further reinforces our position as a leading telecom and networking equipment provider for complex, high-availability networks."

The BharatNet project, funded by the Digital Bharat Nidhi (DBN), aims to extend high-speed broadband connectivity to every village in India. This initiative is expected to empower rural India, foster inclusive growth, and bridge the digital divide between urban and rural communities.

While the partnership with NCC for the BharatNet Phase III project represents a significant opportunity for Tejas Networks, the market seems to be weighing this against the company's recent financial performance. Investors and analysts will be closely watching how this project impacts the company's future quarters and whether it can help reverse the recent stock price trend.

As always, investors are advised to conduct thorough research and consider multiple factors before making investment decisions.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.80%	-8.86%	-9.70%	-39.25%	-59.30%	+479.30%

Tejas Networks , a leading Indian telecom equipment manufacturer, has announced a significant win in the BharatNet Phase III project. The company has been selected by Nagarjuna Construction Company (NCC) as the supplier of IP/MPLS Routers for multiple packages of this ambitious government initiative.

Project Details

Tejas Networks has begun shipping its IP-MPLS Routers and Management System for packages covering:

Madhya Pradesh
Dadra Nagar Haveli
Daman and Diu
Uttarakhand

The project involves upgrading the existing middle-mile broadband infrastructure from linear to ring topology across 30,841 Gram Panchayats and 411 Block locations using IP-MPLS technology.

BharatNet Initiative

BharatNet is a Government of India program funded by Digital Bharat Nidhi. Its primary aim is to extend high-speed broadband connectivity to every village in the country, fostering inclusive growth and bridging the digital divide between urban and rural communities.

Project Scope and Impact

Aspect	Details
Coverage	30,841 Gram Panchayats, 411 Block locations
Technology	IP-MPLS
Infrastructure Upgrade	From linear to ring topology
Key Objectives	Empower rural India, Foster inclusive growth, Bridge digital divide

Company Statements

Manoj Penmetcha, Director (Projects) of NCC, emphasized the importance of creating a robust, reliable, and scalable middle-mile network for BharatNet. He expressed confidence in Tejas Networks as the ideal technology partner for this critical project.

Sanjay Malik, Chief Strategy and Business Officer of Tejas Networks, highlighted the company's experience in designing and executing mission-critical networks. He stated, "This win further reinforces our position as a leading telecom and networking equipment provider for complex, high-availability networks."

Tejas Networks' Experience

Tejas Networks has previously served as a GPON equipment supplier for earlier phases of the BharatNet project. This experience provides the company with a deep understanding of the current BharatNet network architecture and its implementation complexities.

The selection of Tejas Networks for this crucial role in the BharatNet Phase III project underscores the company's growing prominence in India's telecommunications infrastructure development. As the project progresses, it is expected to play a significant role in enhancing rural connectivity and supporting the delivery of online education, telemedicine, and e-governance services in remote areas of India.