Telecom stock engaged in manufacturing, trading and servicing of telecommunication equipment, and rendering other associated and ancillary services jumped upto 9 percent in the day’s trade upon receiving BharatNet Project worth Rs. 3,022 Crores.
Price Action
With a market capitalization of Rs. 27,572 Crores, the shares of ITI Limited were trading at Rs. 288 per equity share, up 8 percent from its previous day’s close price of Rs. 266.25.
What Happened
ITI Limited engaged in manufacturing, trading and servicing of telecommunication equipment, and rendering other associated and ancillary services, with its consortium partner has emerged as the L1 Bidder of BharatNet Project for Middle Mile Network for a consideration of Rs. 3,022 Crores.
The said work order is for the BharatNet Phase-3 Project in the states of Himachal Pradesh, West Bengal and Andaman & Nicobar Islands. It involves Design, Supply, Construction, Installation, Creation, Upgradation and Operation & Maintenance of Middle Mile Network of BharatNet on Design Build Operate and Maintain (DBOM) Model
About the Company
ITI Limited is engaged in manufacturing, trading and servicing of telecommunication equipment, and rendering other associated and ancillary services.
It manufactures telecom and electrical equipments, including electronic switching exchanges, transmission equipment, microelectronic telephone instruments Digital Mobile Radio systems, smart energy meters, mini personal computers, Smaash Laptop, three-dimensional printing, bank automation products and others.
Financials & Ratios
Its Revenue from operations grew by 231 percent from Rs. 157 Crores in Q1FY24 to Rs. 520 Crores in Q1FY25, accompanied by losses of Rs. 103 Crores to Rs. 91 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of -31.88 percent, and a return on capital employed (ROCE) of -8.59 percent. It has reported a debt-to-equity ratio of 1.01.
Written by: Bharath K.S
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