The shares of the telecom product manufacturer gained up to 2 percent after the company received a letter of Intent worth Rs 37.5 Cr for Solar Street light Systems in Bihar.
With a market capitalization of Rs 29,427.16 crore, the shares of ITI LTD. were trading at Rs 306.25 per share, increasing around 0.51 percent as compared to the previous closing price of Rs 304.85 apiece.
According to the company filing, ITI LTD’s Naini Unit has received two LOIs for Design, Supply, Installation, Testing, and Commissioning with a Comprehensive Maintenance Contract for 5 years including Remote Monitoring System (RMS) of 12,240 numbers of Solar Streetlight Systems from DPRO Katihar amounting to Rs. 37.5 under Mukhyamantri Gramin Solar Street Light Yojana.
However, ITI Naini Unit is already manufacturing solar panels that can harness solar power up to 400W. In terms of yearly production, Naini Unit manufactures solar panels, which can harness 18 Mega Watt (MW) of solar energy which comes to around 55,000 panels per year. With the enhanced capacity (500 MW), the unit will start manufacturing around 15,00,000 panels per year.
Looking into ITI Ltd’s performance, revenue increased by 1 percent from Rs 256.35 crore in Q3FY23 to Rs 258.84 crore in Q3FY24. During the same time frame, net loss magnified from Rs 87.61 crore to Rs 101.25 crore.
The company’s profitability measures show a decline in return on equity (RoE) from 4.69 percent in FY 21-22 to (15.87) percent in FY 22-23, while, during the same period return on capital employed (RoCE) decreased from 10.16 percent to (5.18) percent. In contrast, the net profit margin (NPM) was 25.80 percent in fiscal year 22-23.
The stock has delivered returns of 17.92 percent in the last six months and a multi-bagger return of 187.95 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.87 lakh in a year.
ITI Limited is an Indian firm that manufactures, trades, and supports telecommunications equipment, as well as provides other related/ancillary services. It makes telecom equipment such as electronic switching exchanges, transmission equipment, microelectronics, and telephones.
Written by:- Abhishek Singh
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