ITI Ltd Stock Rises After Securing ₹64 Cr in New Orders
The shares of the public sector undertaking, ITI Ltd, experienced a surge of up to 5 percent after the company announced a significant new work order for an Integrated Security System and other projects, totaling ₹64 crore.
Despite this positive news, the stock was trading at ₹400.25 per share, reflecting a decrease of around 5 percent compared to the previous closing price of ₹421.30. The company currently has a market capitalization of ₹38,459.50 crore.
Reason for Stock Increase
The positive movement in ITI Ltd's stock price follows the announcement of two significant contract wins: a ₹35 crore contract for Wi-Fi and LAN setup at Sambalpur University, Odisha, covering 80 locations, and a ₹29.14 crore contract for an Integrated Security System for Central Railways, Mumbai. This latter project involves installing 1400 cameras across six stations, enhancing connectivity and safety measures.
Financial Condition
While analyzing the company’s financial performance, it's clear that the revenue has significantly improved, jumping by 231 percent from ₹157 crore in Q2FY24 to ₹520 crore in Q2FY25. However, despite the improved revenue, the net loss has only slightly decreased from ₹103 crore to ₹91 crore during the same period.
Recent Orders
In addition to the contracts above, ITI Limited also recently secured an order from the Bihar Renewable Energy Development Authority (BREDA) for the supply and installation of 1,00,000 Solar Street Light Systems to the Bihar State Government, valued at ₹300 crore.
Ratio Analysis
The company's critical financial ratios reveal some challenges. The Return on Equity (ROE) decreased from (15.87) percent in FY22-23 to (31.88) percent in FY23-24. Similarly, the Return on Capital Employed (ROCE) fell from (5.18) percent to (14.94) percent. The Net Profit Margin (NPM) for fiscal year 22-23 is (45.03) percent.
Shareholding Pattern
The company’s recent shareholding structure shows that the Promoters hold 90.00 percent of the shares. Retail shareholders own 2.02 percent, and Foreign Institutional Investors own a small stake of 0.03 percent.
Company Profile
ITI Limited is a company involved in the manufacturing, trading, and servicing of telecommunication equipment and associated services. It produces various telecom products, including electronic switching exchanges, transmission equipment, microelectronics, and telephone instruments.
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