Consolidated net sales jumped 47% to Rs 827.95 crore in Q3 December 2019 from Rs 563.23 crore in Q3 December 2018.
The bump in the net profit was aided by 107.9% rise in other income to Rs 150.87 crore in Q3 December 2019 as against Rs 72.57 crore in Q3 December 2018.
The Dept of Telecommunications (DoT), GOI has allocated grant of Rs 85.40 crore to the company towards meeting the liability of PF of the employees who were given VRS/VSS or whose VRS/VSS was under process as on 30 June 2018 which was approved by Dept of Expenditure, MoF.
The DoT had intimated vide letter dated 31 December 2019 that the company may account for allocation of Rs 85.40 crore in the current financial year 2019-20 to meet its liabilities on account of statutory dues from its own resources which will be recouped by DoT and the same has been done by the company’s management.
Further, the ‘other income’ includes Rs 49.30 crore being ‘write-back’ of liablities which in the opinion of the company is no longer required. Out of said amount, Rs 19.27 crore represent liability towards the suppliers which have been entered on back to back agreement, with the private vendors for the supplies/services effected to Government departments/PSUs.
The company is a ‘Sick Company’ as per provisions of Sick Industrial Companies Act (SICA), 1985. Cabinet Committee on Economic Affairs (CCEA) has approved a financial assistance of at Rs 4156.79 crore in February, 2014, for revival of ITI under rehabilitation scheme. With this, the company’s net worth has become positive after a period of 16 years.
Rakesh Mohan Agrawal, CMD, ITI, said Despite several challenges, ITI has consistently exhibited resilient performance. The company is focusing on strategic areas and intending to maintain a steady growth. With the strategy of project implementation, manufacturing and marketing, ITI has achieved this breakthrough. We are also tying up with various agencies to position ITI as a manufacturer of IoT products. The company has a sound order book and is poised to take off from here.
He further added, During this quarter, the company has undertaken several measures to reduce operating costs, increase operational efficiency and improve productivity. These measures include modernized and upgraded infrastructure, equipment and technology, emphasis on R & D and innovation and continued training and improvement of our employee’s skills. The company will continue to take further measures in the area of cost control in the coming quarters.
ITI is primarily engaged in business of manufacturing, trading and servicing of telecommunication equipments and rendering other associated / ancillary services, offered to government institutions/departments, banks etc.
