ITI jumps on bagging Defense Ministry project

ITI jumped 4% to Rs 130.15 after the company signed contract with the Ministry of Defense to implement Rs 7796 crore ASCON Phase-IV project.

The state-run company on Thursday (1 October), said that it had signed Rs 7,796 crore Phase IV project of Army Static Switched Communication Network (ASCON) for deploying strategic network for secured communication across the country and subsequent maintenance for next 10 years.

ASCON is the army's telecom network spread across different terrains in the northern, north-eastern and western regions. The project is an IP MPLS based communication network with microwave radio, satellite and optical fiber network as media. The project includes installation, commissioning and maintenance of telecom equipments like IP/MPLS routers, NMS, mobile nodes, test equipment and civil works for providing the complete infrastructure at various sites and roll out optical fiber network of about 11,000 kms.

The scope of the project also includes a warranty period of two years and maintenance support of the network for another eight years after the warranty.

ITI, a multi-unit central public sector undertaking, is a total solution provider in telecommunications segment. It offers complete range of telecom products covering the whole spectrum of switching, transmission, access and subscriber premises equipment. As of 30 June 2020, the Government of India held 90.27% stake in the company.

ITI reported consolidated net loss of Rs 102.29 crore in Q1 June 2020, higher than net loss of Rs 61.04 crore in Q1 June 2019. Consolidated net sales rose 2.5% to Rs 165.01 crore in Q1 June 2020 over Q1 June 2019.

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