Tejas Networks Ltd

- Tejas Networks continues to invest significantly in R&D, especially in wireless and wireline product development, focusing on 5G advanced and 6G technologies. - Investments in product development are ongoing and crucial due to the technology's evolving nature; these are not expected to reduce but will be optimized based on business growth. - The company has invested in scaling systems and processes, particularly through the BSNL 4G project execution, to prepare for international business expansion. - Cost optimization and capital planning aligned with product development have been actively pursued; no fresh fundraising is currently planned. - The company is monitoring working capital and inventory management to improve capital efficiency, factoring in procurement for upcoming BSNL 4G add-on orders. - Overall, capital investment strategy focuses on supporting new product launches, international market expansion, and maintaining R&D leadership in emerging tech.

- Tejas Networks expects growth driven by expansion of 4G networks and new 5G deployments in emerging markets. - Significant opportunities in international markets via ongoing trials and Proofs of Concept (POCs) across Asia Pacific, Latin America, Africa, and Europe, with business expected to materialize in coming months. - Increasing adoption of wireline and wireless products in Indian private telcos and international operators, leveraging partnerships with NEC, Rakuten among others. - A nationwide BSNL 5G rollout could substantially increase order size depending on number of sites deployed (previous 4G rollout had ~100,000 sites). - Growth in data center networking business driven by innovative products and expanding applications, including first sovereign data center networking win in India. - Increasing portfolio and patent filings in 5G advanced and 6G technologies position the company well for future technological transitions. - Transition period expected, but management remains bullish and focused on scaling business globally over the next few years.

- Tejas Networks does not provide quarter-to-quarter guidance but maintains a positive long-term outlook. - The company expects growth from international wireless and wireline business scaling up globally. - BSNL 4G project was a key platform to develop products; future growth is expected from private and international telcos rather than BSNL alone. - Transition to global markets is underway, with multiple POCs progressing to commercial negotiation stages likely to close in coming months. - Margins expected to improve with international business, which has better pricing than the Indian market. - Continuous investment in R&D and product development will continue, but with increased prudence and cost optimization efforts. - Profitability expected once new products scale internationally and critical business size is achieved, though exact timeline remains uncertain. - Order book and revenue growth alongside successful deal closures will drive path to profitability. - CEO appointment and business operations ongoing to support growth execution.

- Current order book includes BharatNet orders as per CFO Sumit Dhingra (Page 13). - Tejas Networks won 7 out of 12 BharatNet Phase 3 packages; deployment of over 50,000 routers expected over next 2 years (Page 12-13). - Precise BharatNet order size not disclosed due to multiple system integrators involved (Page 13). - BSNL 4G add-on PO for 18,000 sites is delayed; PO yet to be received though expansion order is expected (Page 4). - Inventory built up mainly for expected BSNL 4G add-on order, awaiting purchase orders (Page 6). - BSNL 5G upgrade orders for selective sites are uncertain in timing and size; fresh nationwide 5G rollout bids expected later (Page 17). - Overall order book stands at approx. INR 1,300 crores related to BSNL; however, larger turnover of ~INR 3,500 crores needed for EBIT break-even (Page 14).

- Currently, there is no proposal for fundraising through debt or equity under discussion at the Board level. - Evaluation of capital structure is an ongoing exercise, but no active plans for a fundraise have been disclosed. - The company is focusing on cost optimization and rationalization rather than cost-cutting. - Investments, particularly in R&D, continue with prudence and optimization. - Tejas Networks believes it has sufficient cash runway for now and has not indicated an immediate need for additional capital.