Tejas Networks shares dropped nearly 8 percent on Monday, after the wireless telecom and data networking products company reported a wider-than-expected loss in the June quarter.

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The company reported a net loss of Rs 27 crore during the quarter, compared to a loss of Rs 11.5 crore in March, and a loss of Rs 6.3 crore during the same quarter last year.

Operating or EBITDA loss for the company also widened to nearly Rs 47 crore during the June quarter from just Rs 8 crore in March and Rs 7.3 crore in June last year.

Increased losses were due to multiple factors like Rs 31.3 crore ESOP (employee stock option) charge, continued investments in research and development (R&D) and increased component costs to expedite fees and spot buys to ensure critical customer shipments.

Net revenue during the June quarter stood at Rs 188 crore, up 46.3 percent compared with the year-ago quarter. However, when compared to the March quarter, the topline had declined by 37 percent.

The quarter-on-quarter revenue decline was attributed to the transition to the EMS (element management system) facilities. Tejas Networks said that the company faced a few component delays during the June quarter as one of the EMS suppliers was shifting facilities, but the issue has now been resolved.

Among the key positives for the investors during the quarter was the fact that Tejas Networks has a cash balance of Rs 943 crore currently with no debt.

Order book towards the end of the June quarter stood at Rs 1,909 crore, of which, 50-60 percent is likely to be executed in the current financial year.

Tejas Networks has also successfully commissioned the pilot network of 200 sites of BSNL’s 4G network in Punjab and expects to ramp up supplies for deployment from the September quarter.

Shares of Tejas Networks are off the day's low, but are trading 4.9 percent lower at Rs 804. The stock is still up 33 percent on a year-to-date basis.