ITI Limited Results: Revenue Surge, Loss Reduction & BharatNet Phase-3 Project Wins
ITI Ltd: Overview
ITI is a government-owned company under the ministry of Communications which was established in 1948. Full form of ITI is India Telephone Industries. And it provides diverse range of telecom products and services. The revenue bifurcation of company is 78% Turnkey projects, 19% service projects and 3% manufacturing projects. The Company’s order book is filled with government tenders for network distribution and connection over full area under its state. Its clientele is BSNL, Mahanagar Telephone Nigam Ltd and Indian Defence services. The 74% of company’s revenue is accounted from PSUs. It has total 1600+ employees working under its company. And it has no export revenue, and no outside Indian company is its client. Whole revenue is from PSUs or Ministry of government.
Shareholding Pattern as on September 2024
ITI Ltd Key Stats
| Market Cap | ₹36,459 Crore |
| Revenue | ₹1264 Crore |
| Profit | -₹569 Crore |
| ROCE | -8.35% |
| P/E | – |
Peer Comparison
| Amt in ₹ | MCap | Sales | PAT | ROE | Asset Turn. | EV/EBITDA | D/E | FCF |
| ITI Ltd | 36459 Cr | 2396 Cr | (474 Cr) | -27.30% | 0.13 | -201.3 | 1.05 | 937 Cr |
| Astra Microwave | 7155 Cr | 969 Cr | 130 Cr | 15% | 0.72 | 30.7 | 0.31 | (229 Cr) |
| Tejas Network | 20133 Cr | 6260 Cr | 454 Cr | 2.06% | 0.42 | 20.5 | 0.78 | (2445 Cr) |
| Avantel | 3692 Cr | 229 Cr | 61.7 Cr | 39.20% | 1.19 | 38.67 | 0.08 | 39.5 Cr |
| ADC India Comm. | 752 Cr | 179 Cr | 21 Cr | 33.70% | 1.96 | 17.9 | 0 | 19.4 Cr |
Financial Trends
| Amount in ₹ Cr | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
| Revenue | 2059 | 2362 | 1861 | 1395 | 1264 |
| Expenses | 1914 | 2313 | 1753 | 1549 | 1582 |
| EBITDA | 144 | 50 | 107 | -154 | -318 |
| OPM | 7% | 2% | 6% | -11% | -25% |
| Net Profit | 146 | 9 | 119 | -360 | -569 |
| NPM | 0.07 | 0.00 | 0.06 | -0.26 | -0.45 |
| EPS | 1.58 | 0.1 | 1.27 | -3.79 | -5.92 |
ITI Ltd Analysis
The share price of ITI was in consolidation phase from 2018 to 2023, but now it broke that phase and it’s at all time high levels. And on 30th December 2024 the share price rose by 15.5% reaching at ₹379 per share. Its 52 week High/Low is ₹404/210. The volatility very high in the stock, because in about 15 months the stock has given 3 times returns to its investors, showing a sign of high risk and volatility in future. Volumes in past months and in history were less than 2 million trades per day but since past 2 months the volumes have increased to 70-90 million trades per day.
News
ITI Limited has significantly improved its operational efficiency, reducing working capital requirements from 196 days to 15.1 days.
For Q2FY25, the company reported consolidated revenue of ₹1,016.20 crore, a substantial increase from ₹246.47 crore in the same quarter last year. Losses were also reduced to ₹70.10 crore, compared to ₹125.81 crore in Q2FY24.
The company, in partnership with its consortium, secured the lowest bidder position (L1) for two packages worth ₹3,022 crore under BharatNet Phase-3. These packages cover Himachal Pradesh, West Bengal, and Andaman and Nicobar Islands, focusing on designing, supplying, constructing, and maintaining the Middle Mile Network funded by the USOF.
ITI is already executing optical fiber projects worth ₹5,400 crore across Tamil Nadu, Maharashtra, and Gujarat under earlier BharatNet phases and serves as the Project Implementation Agency for MahaNet-I and Gujarat Fiber Grid Network Ltd.