ITI Limited Q2 loss widens to Rs 100 cr, revenue plunges 44% to Rs 197 cr

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State-owned telecom gear maker ITI Limited on Friday reported widening of its consolidated net loss to over Rs 100 crore in the second quarter ended September 30, 2022.

The company had posted a loss of Rs 55.8 crore in the same period a year ago. The revenue from operations of ITI plunged by about 44 per cent to Rs 197.55 crore during the reported quarter from Rs 352.49 crore in the year ago period.

According to the auditor's note, the company had to bear the financial burden of granting a voluntary retirement scheme (VRS) to employees in 2019-20 after the Department of Telecommunications refused to accept the proposal of granting VRS on medical grounds.

The auditor note said that the ITI has not made any provision for credit losses amount to Rs 96.1 crore under trade receivables comprising Rs 58.47 crore from C-DoT, Rs 16.9 crore from HCL Infosystems, Rs 10.49 crore from HFCL and Rs 10.23 crore from Mind Array, which are doubtful recoveries.