TCS Shares Up 1% as Consortium Secures Rs 15,000 Crore 4G Deployment Order from BSNL

TCS secures Rs 15,000 crore Make-in-India 4G telecom equipment order from BSNL.

Tata Consultancy Services has won a pre-order from state-owned BSNL (Bharat Sanchar Nigam Ltd) to deploy a 4G network in India. In exchange documents, Tata Group Company said BSNL’s pre-orders are worth more than Rs 15,000 crore.

Tejas Networks Ltd was also part of the TCS-led consortium that successfully bid for BSNL’s pan-India 4G project. BSNL has placed an Advance Purchase Order (APO) to TCS and ITI for the project.

“As part of the consortium, Tejas Networks will supply and service radio access network (RAN) equipment,” the company said in its filing.

Shares of TCS rose 0.8% in intraday trading on Monday, while shares of Tejas Networks and ITI both rose 4.2%. In contrast, the benchmark S&P BSE Sensex and BSE Information Technology indexes were up 0.23% and 0.78%, respectively, at 10:05 am.

In December 2022, the government said state-run BSNL was working on its 4G saturation plan, which would provide every village without a high-speed broadband connection with one in a year or so.

“BSNL has awarded many passive infrastructure contracts and at the same time it is finalizing contracts for active infrastructure,” said then telecom minister K Rajaraman.

The programme is expected to cover more than 24,600 uncovered villages, many of which are in remote, rural and remote areas.

Meanwhile, TCS posted a net profit of Rs 11,392 crore in the January-March quarter of FY23, up 14.8% YoY. Subsequently, the company’s profits rose 5%.

Revenue in Q4FY23 rose 16.9% YoY to Rs 59,162 crore. On a constant currency basis, revenue grew just 0.6% sequentially. That was one of the slowest revenue growth in constant currency in 11 quarters.

Tejas Networks, on the other hand, reported a consolidated net loss of Rs 11.5 crore in Q4FY23, compared to a loss of Rs 49.6 crore in the corresponding period of the previous period.

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