Shares of state-owned ITI Ltd. fell by 5 percent on February 14 after the company reported a net loss for the third quarter of the current financial year (Q3FY25).
The company narrowed its net loss to ₹48.9 crore in Q3FY25, a significant improvement from the ₹101.3 crore loss recorded in the same quarter last year. Despite this, the stock declined as investors reacted to the continued losses. However, ITI’s revenue from operations saw a sharp 299.7 percent year-over-year surge to ₹1,034.5 crore, up from ₹258.8 crore in Q3FY24, driven by strong operational performance despite rising raw material costs.
At the operating level, ITI managed to reduce its EBITDA loss to ₹10.6 crore in Q3FY25, a notable improvement from the ₹43.5 crore loss reported a year ago. The improvement in financial performance, however, was not enough to boost investor sentiment.
In January, ITI expanded its operations into security systems and education/ICT domains, securing orders worth ₹64 crore. This includes a ₹35 crore contract from Sambalpur University, Odisha, for establishing campus-wide Wi-Fi and LAN connectivity across 80 locations. The project involves supply, installation, commissioning, and a three-year maintenance period. Additionally, ITI won a ₹29.14 crore contract from Central Railways for an integrated security system.
Further strengthening its order book, ITI recently secured a ₹95 crore contract from the Directorate of Geology & Mining, Government of Uttarakhand. The contract is for the implementation of a Mining Digital Transformation & Surveillance System (MDTSS) project, which is expected to enhance the company’s revenue and profitability.
Despite the stock’s recent decline, ITI has outperformed the benchmark Nifty 50 index over the past year. While ITI shares have fallen around 8 percent, the Nifty 50 index has gained approximately 5.7 percent in the same period.
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Source: Moneycontrol
