The shares of the public sector undertaking gained up to 10 percent after the company emerged as the lower bidder for the Design Build Operate and Maintain (DBOM) Model project with Rs 1,537 crore.
With a market capitalization of Rs 31,608.38 crore, the shares of ITI LTD were trading at Rs 327.55 per share, increasing around 8 percent as compared to the previous closing price of Rs 303.60 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after ITI LTD emerged as the lower bidder for Package No. 15 of the BharatNet Phase-3 Project comprising Arunachal Pradesh, Nagaland, and Manipur states.
Moreover, the BharatNet Phase-3 Project is divided into 16 Packages spread across all states & union territories. BSNL had invited tenders, for the Design, Supply, Construction, Installation, Upgradation, Operation, and Maintenance of the Middle Mile Network of the BharatNet Phase-3 Project on a Design Build Operate, and Maintain (DBOM) Model.
Furthermore, on November 7, the company also emerged as L1 for Package No. 8 in the state of Himachal Pradesh, and for Package No. 9 in West Bengal, & Andaman and Nicobar Islands with an order value of Rs. 3,022 crore. With this, ITI Limited has emerged as L1 for three Packages (8,9, &15) taking the total order value to Rs. 4,559 crore.
Financial condition:-
Analyzing the company’s financial performance, revenue zoomed by 231 percent from Rs 157 crore in Q2FY24 to Rs 520 crore in Q2FY25 but during the same time, net loss minimized from Rs 103 crore to Rs 91 crore.
Recent orders:-
Recently, ITI Limited won an order from Bihar Renewable Energy Development Authority (BREDA) for supply and installation of 1,00,000 numbers of Solar Street Light Systems to Bihar State Government worth Rs. 300 Crores.
Ratio analysis:-
The company’s critical ratios show that the return on equity decreased from (15.87) percent in FY22-23 to (31.88) percent in FY23-24, while the return on capital employed decreased from (5.18) percent to (14.94) percent. The net profit margin (NPM) for fiscal year 22-23 is (45.03) percent.
Shareholding pattern:-
In the company’s recent shareholding pattern, the Promoters of the company own 90.00 percent while Retail shareholders own a 2.02 percent stake in the company, and Foreign Institutional Investors own a 0.03 percent stake.
Company profile:-
ITI Limited is engaged in the manufacturing, trading, and servicing of telecommunication equipment and rendering other associated/ancillary services. It manufactures telecom equipment, including electronic switching exchanges, transmission equipment, microelectronic, and telephone instruments.
Written by:- Abhishek Singh
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