Tejas Networks shares pared almost all their gains to trade just nearly 1% higher at Rs 188 apiece in afternoon trade on Tuesday. The stock had risen as much as 10.6% in initial trade after the domestic telecom gear maker posted better-than-expected numbers for the March quarter.
The stock witnessed a spurt in volume of shares being traded on bourses, with almost 1.8 million shares changing hands.
The stock is still down almost 47% from its 52-week high, but recovered from the 52-week low of Rs115 seen in February this year.
The company on Monday had announced that its net profit rose 9.2% in the March quarter to Rs35.89 crore on the back of strong sales growth. Tejas Networks had also recommended a dividend of Rs1 per share for FY19.
The company's total income for the quarter jumped to Rs280 crore from Rs112.19 crore in the corresponding quarter of the previous year.
For the full year ended March 31, 2019, Tejas Networks posted 38% increase in consolidated net profit at Rs147.24 crore compared with Rs106.32 crore in FY18. Total income rose 18% to Rs937.01 crore for FY19.
Tejas Networks managing director and CEO Sanjay Nayak said: “We witnessed high fluctuation in quarter-on-quarter business. However, the performance was extremely satisfying in the fourth quarter and the year overall. It was mainly on account of international sales going up by 70% and non-government revenue increasing by 33% on year-on-year basis.”
According to the company website, Tejas Networks is India's largest R&D-driven telecom equipment company with around 700 employees. Tejas designs and manufactures fiber-optic networking equipment, broadband wireless and data networking products used by telecom service providers in more than 65 countries globally. Tejas products are used by telecom service providers (mobile operators, internet service providers, and undersea bandwidth providers), utility companies (railways, gas, oil, power transmission), defense as well as by governments.