ITI surges 15% on 12-fold jump in Q3 profit; co's net worth turns positive

Shares of ITI surged 15 per cent to Rs 106 on the BSE on Tuesday after the company reported robust earnings with an over 12-fold jump in the consolidated net profit at Rs 168 crore in the December 2019 quarter of the current fiscal year (Q3FY20).

With this, the company’s net worth has become positive after a period of 16 years, the company said in a statement.

Higher operational revenue and other income, the management said, contributed towards the higher profit during the quarter. The state-owned telecom equipment provider had a profit of Rs 13.58 crore in the year ago quarter.

ITI’s revenue from operations rose 47 per cent year on year (YoY) at Rs 828 crore, as against Rs 563 crore in the previous year's quarter. Other income during the quarter -- which included Rs 49 crore as write-back of liabilities -- grew more-than-double to Rs 151 crore from Rs 73 crore.

"With the strategy of project implementation, manufacturing, and marketing, ITI has achieved this breakthrough. The company is also tying up with various agencies to position ITI as a manufacturer of Internet of Things (IoT) products. The company has a sound order book and is poised to take off from here," the management said in a statement.

ITI is primarily engaged in business of manufacturing, trading and servicing of telecommunication equipments and rendering other associated/ancillary services.

At 09:28 am, the stock was trading 13 per cent higher at Rs 104 on the BSE. In comparison, the S&P BSE Sensex was up 1.1 per cent at 41,126 level. The trading volumes on the counter jumped 1.5 times with a combined 2.4 million shares changing hands on the NSE and BSE till the time of writing of this story.