President of India-Backed Stock Rallies Over 10 Per cent After Securing L1 Bid Worth Rs 3,022 Crore for BharatNet Phase-3 Project

The company’s shares have delivered an impressive return of over 40 per cent in just 2 weeks.

The president of the India-backed Mid-Cap company, which is engaged in the manufacturing, trading, and servicing of telecommunication equipment, as well as providing other associated and ancillary services. Today, the company’s stock rallied over 10 per cent after securing a significant work order worth Rs 3,022 crore.

ITI Limited, India’s first public sector undertaking (PSU) established post-independence and a leading telecom manufacturing company, along with its consortium partner, has secured the lowest bid (L1) for the BharatNet Phase-3 Project.

This achievement covers Package No. 8 in Himachal Pradesh and Package No. 9 in West Bengal and the Andaman & Nicobar Islands, with a total order value of Rs 3,022 crore. Out of the 11 packages tendered so far from a total of 16, the ITI-led consortium has successfully won two packages, further strengthening its role in this nationwide project.

The BharatNet Phase-3 Project, funded by the Universal Service Obligation Fund (USOF) under the Department of Telecommunications (DoT), was initiated by BSNL, which invited tenders for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network across these 16 packages or circles. This phase aims to bridge the digital divide by providing high-speed broadband connectivity with a bandwidth of 100 Mbps to Gram Panchayats (GPs) and villages across India, ensuring that rural areas have equal access to online services.

The project’s ambitious scope includes connecting all 640,000 villages, blocks, and Gram Panchayats nationwide via high-speed internet, using a Design, Build, Operate, and Maintain (DBOM) model to establish, upgrade, and maintain BharatNet's middle-mile network.

Share Performance

At the start of today’s trading session, ITI Limited opened at Rs 272.05 per share, compared to Rs 266.65 per share on the BSE. Currently, the shares are at around Rs 295.70 per share on the NSE. The current market capitalization stands at Rs 28,413 crore, and the stock has generated an impressive return of over 40 per cent in just 2 weeks.

Financial Performance

As per Quarterly Results, in June 2024 ITI Limited reported a revenue of Rs 520 crore compared to Rs 157 crore. The company posted an operating loss of Rs 13 crore. The company’s net loss stood at Rs 91 crore for the period.

Looking at the annual performance, the company generated a revenue of Rs 1264 crore in FY24 compared to Rs 1395 crore in FY23 representing a de-growth of 9.45 per cent YoY. The operating loss for FY24 was Rs 318 crore compared to Rs 154 crore in FY23. The company reported a net loss of Rs 569 crore compared to Rs 360 crore.

Disclaimer: The article is for informational purposes only and not investment advice.