CMP : ₹ 90.20
Target : ₹ 450 (time frame 2 years).
Type : PSU.
Founded : 1948.
Sector : Telecom
Industry : Telecommunications Equipment & Services.
Headquarters : Bangalore, India
Number of Employees Total : 3951
R & D Centers : Bangalore, Naini & Mankapur.
Quality System : ISO 9001:2000 & ISO 14001 :2004.
Total Market CAP : 5,068.00 Cr
Website : www.itiltd-india.com
Key person : Gopu, Chairman & Managing Director.
Company Profile : ITI Ltd is in the Telecom sector and is a state-owned telecommunications equipment manufacturer. India’s first Public Sector Unit (PSU) – ITI Ltd was established in 1948. Ever since, as a pioneering venture in the field of telecommunications, it has contributed to 50% of the present national telecom network. With state-of-the-art manufacturing facilities spread across six locations and a countrywide network of marketing/service outlets, the company offers a complete range of telecom products and total solutions covering the whole spectrum of Switching, Transmission, Access and Subscriber Premises equipment. Multi-locational state-of-the-art electronic assembly & component manufacturing facilities accredited with ISO 9001:2000. Multi-locational ISO 14001 :2004 Environmental Management System certified plants First Indian company to manufacture BTS & other infra products for GSM / WiMAX. Countrywide marketing and customer care centers.
In-house R&D for absorption of technology, indigenous development of products for in-house manufacturing.
ITI joined the league of world class vendors of Global System for Mobile (GSM) technology with the inauguration of mobile equipment manufacturing facilities at its Mankapur and Rae Bareli Plants in 2005-06. This ushered in a new era of indigenous mobile equipment production in the country. These two facilities supply more than nine million lines per annum to both domestic as well as export markets.
The company is consolidating its diversification into Information and Communication Technology (ICT) to hone its competitive edge in the convergence market by deploying its rich telecom expertise and vast infrastructure. Network Management Systems, Encryption and Networking Solutions for Internet Connectivity are some of the major initiatives taken by the company.
Secure communications is the company’s forte with a proven record of engineering strategic communication networks for India’s Defence forces. Extensive in-house R&D work is devoted towards specialized areas of Encryption, NMS, IT and Access products to provide complete customized solutions to various customers.
YEAR EVENTS 1950 – The Company was Incorporated as a private limited company on 25th January, at Bangalore. The Company was the first public sector undertaking started in 1948 by the Government of India after independence. The Company became a public limited company on 23rd November, 1985. The main objects is to design, manufacture and supply telecommunication equipment such as telephone instruments, electromechanical exchanges, transmission systems, electronic exchanges and ground stations for satellite communications.
– The Company has its own R&D division to play its role in technology innovation, upgradation and adaptation. Advanced facilities and infrastructure were established for research and product development.
– It was proposed to be met by floating bonds to the public, funds in the form of budgetary support from Government and internal accruals.
1979 – 90,064 shares allotted without payment in cash. Out of the total shares issued, 31,250 shares were held by Karnataka Government and 14,68,750 shares were held by Govt. of India.
1982 – 15,00,000 shares issued to Government of India.
1983 – 17,00,000 shares issued to Government of India.
1984 – 23,00,000 shares issued to Government of India.
1985 – 18,00,000 shares issued to Government of India.
1987 – Under the `B’ Series issue 11,89,966-10% tax free non-convertible bonds of Rs 1000 each and 10,60,034-14% non-convertible bonds of Rs 1000 each were issued for public subscription. 7,93,230-13% non-convertible bonds of Rs 100 each were privately placed bonds with 10% interest rates (tax free) are redeemable after 10 years while the other bonds are redeemable after 7 years from the date of allotment.
1992 – The OCB 283/CSN project in technical collaboration with M/s. ALCATEL was taken up at Mankapur, Bangalore and Palakhad units.
– The Company has a production capacity to manufacture exchange equipments based on C-DOT technology totally 750 KL at E.C. Plant Rae Bareli and at Bangalore.
– The Micro Electronics Division has the facilities to manufacture Think film, thick film, VLSI packaging, VLSI processing, ASK Testing and Mask Centre (E-Beam).
1993 – The Company proposed to enter into a joint venture with NKT of Denmark for optical fibre using Synchromous Digital Hierarchy (SDH) equipment with Korea Telecom and Korea Mobile Telecom for Radio Paging Services.
1994 – A joint venture Company called FIBCOM India Ltd. was set up with M/s. NKT Electronik A/S. Denmark and M/s. Industrialization Fund for developing countries.
– 9,81,310 No. of equity shares offered for sale were taken up at a price of Rs 59 per share by the employees of ITI.
1995 – ITI designed and developed PABX Exchange (MPABX-1000) at Mankapur plant, for provision upto 850 lines for operation. One Exchange was installed at Dehradun and others were under installation.
– The Army Static Switched Communication Network (ASCON) was designed, developed, manufactured and installed by the Company.
– New products inducted during the year are Digital Power Gain System (EK ANCH), 11 GHZ Digital Microwave Equipment, Display Telephone Instrument & HDSL.
– The Company proposed to offer new products viz. Transmission and subscriber end equipments, wireless loop, digital loom carrier besides HDSL equipment.
– ITI Equatorial Satcom Ltd. changed its name to M/s. India Satcom Ltd.
1996 – The Company entered into VSAT/MRTS Services. Also OCB 283/CSN projects were being implemented in the three manufacturing plants of ITI viz. Palakhad, Bangalore and Mankapur.
– The Company undertook to install three manufacturing plants viz. Palakhad (1000 KLOCB 283), Bangalore (1500 KL CSN) and Mankapur (500 KL CSN).
– The 16 KL main exchange was installed at Indranagar and 14 KL RSU installed at various location viz., whitefield Ulsoor, K.R. Puram etc. of Bangalore.
– New products such as ARMY VSAT, 8 Mb OLTE, Transportable Satellite Terminals were inducted and new technology for 6 GHZ M/W equipment was introduced. The Mankapur plant developed a New Power for recovery of core for rejected transformers.
– The Company proposed to offer new products covering switching access products, transmission and subscribed end equipments. Some of the products to be introduced include wireless local loop, digital loop carrier besides fairgain and HDSL equipment.
– ITI Equatorial Satcom Ltd. and Singapore Styled ITI Communication Pvt Ltd. are joint ventures of the Company.
1997 – During March 15% Government Guaranteed Redeemable Bonds `C’ Series of Rs 1,00,000 each issued aggregating Rs 2,785 lakhs. These are redeemable at par in March 2002.
– The Indian Telephone Industries (ITI), Bangalore plant, which has been going through a rough patch for some time, finally seems to be coming out of the woods, as they bagged the International Quality Management System Standard ISO-9002 for its new products division.
– Qualcomm Inc, the pioneer of CDMA (code division multiple access) technology for wireless communications, has entered into a strategic alliance with Indian Telephone Industries (ITI).
– ITI Limited has entered into a 76.24 joint venture with the US-based company Celcore. ITI under this marketing joint venture will produce cellular equipment for niche market.
– Celcore Inc of the US and ITI Ltd. have signed a joint venture agreement to market, sell and service global system for mobile (GSM) cellular systems.
– Indian Telephones Industries (ITI) Ltd. has entered the public mobile radio trunked service area – a two-way wireless communication system – with its formal lunching at Madurai in Tamil Nadu. ITI became the first public sector company to introduce such high-tech facility.
– Indian Telephone Industries Ltd (ITI), a public sector unit, is teaming up with Telecom Consultancy of India Ltd (TCIL) to undertake communication projects on turnkey basis and provide consultancy services to the railway, powerful oil sectors.
– The public sector Indian Telephone Industries Ltd. (ITI) will utilise prime land in its possession to setup technology parks.
– Three public sector undertakings (PSUs) – Mahanagar Telephone Nigam Ltd (MTNL), Indian Telephone Industries (ITI) and Telecom Consultants India Ltd – are likely to join hands to form a joint venture company to directly compete with private operators in the field of basic and cellular services.
– ITI proposes to set up two wholly owned subsidiaries for taking up exclusive operation of VSAT and MRTS.
– The company was set to sign an agreement with a foreign firm for a joint venture, on the lines of the Singapore Technology Park.
1998 – ITI Ltd, the country’s largest telecom company has won IMM award for excellence as “Marketing Company in the Organised Sector” for the year 1998. The award comprising of gold, silver trophy and a certificate of merit.
– ITI Limited will soon introduce the automated system technology for payment of bills and for coin change machines.
– Indian Telephone Industries (ITI) and its joint venture concern are set to bag a substantial portion of the Rs. 118-crore tender for synchronous digital hierarchy (SDH) equipment which was opened recently by the Department of Telecommunications (DoT).
– ITI Ltd, has set up very large scale integration (VLSI) fabrication unit to manufacture highly critical integrated circuits (chips) with an investment of Rs 153 crore, at its Bangalore plant.
1999 – CMC Limited signed an agreement with ITI Limited to implement an Enterprise Resource Planning software at the companies facility at Mankapur in Gonda district.
– ITI Ltd. has entered into a fresh agreement with Alcatel and has renewed its tow decade old agreement to further strengthen technological co-operations.
– The Indian telecom giant ITI Ltd, the first public sector unit to be set up after Independence, has charted out a strategy to portray itself as a dynamic organisation concentrating more on marketing activities along with a special focus on the export markets.
– ITI Ltd. is likely to be shortlisted for setting up the earth station at the proposed software technology park (STP) in Hubli.
– The Company signed an MoU with the DoT for its turnover of Rs 2,000 crore for the year 2000-2001.
2000 – The Company has commissioned the state-of-the-art V-SAT network designed and produced by it for the army as a move towards modernising the communication network of the defense force.
– Bangalore-based telecom major ITI has been awarded the Prime Minister’s MOU award for excellence for the year 1998-99.
– Compaq India and ITI Ltd have signed an MoU to leverage each others expertise to deliver soluions for businesses where there is an increasing convergence of telecom and IT.
– Ms Lakshmi G Menon has taken over as the chairman and managing director of ITI, India’s largest telecom equipment manufacturer.
2001 – Mr Vijoy Kumar, Deputy Director General, has been appointed as part-time official director of the company effective from 2nd March in place of Mr Rajeev Agrawal. U D Paradkar retires from Directorship of ITI Ltd
– ITI Ltd has informed BSE that Shri U.D.Paradkar, Director – Bangalore Plant of the Company has retired from the services of the Company on December 31, 2001.
-Mr U D Paradkar retires from the services of the company as the Director.
-Board approves the proposal for amendment to MOA of ITI Ltd for enhancement of Authorised share capital from Rs.100crs to Rs.250 crs by issue of preference shares under private placement.
-Ties up with Texas to develop IP Phones.
-Mr Pankaj Agarwal appointed as the Director on the Board of the company.
-Mr S K Manocha appointed as the Chairman and MD of ITI Ltd.
-Push button Phone of ITI receives Approved Inspection Scheme (AIS) certification.
-Comes out with Carrier class MPLS and MPLS-VPN (Multiprotocol Lable switching based virtual private network) solution to end customers.
-Appoints Mr J K Verma as the Director on the Board.
-Designs and Develops the first ever indigenious Web-enabled Smart Connect Call Centre.
-Forays into the International Long Distance segment.
-Signs MoU with Shenzhen-Zhongxing Telecom Ltd for setting up infrastructure for Code Division Multiple Access network in India.
-Shri Vijoy Kumar takes charge as the Chairman and MD of the company.
-Unveils India’s first Security Software Product E-Seal (Electronic Secure Encryption authentication Lock).
-Shri Y K Pandey assumes charge as the CMD of the company from May 6th.
-MTNL,BSNL , ITI Ltd and TCIL drop their plan to provide International Long Distance Services
-Mr S K Manocha relinquishes the Directorship on the Board of ITI.
-Declares itself sick under the Sick Industrial Companies Act following the erosion of more than 50% of its networth.
-Fibcom India Ltd, a joint venture between ITI and Tellabs receives the award for Excellence in Professional Electronics for 2001-2002 from Ministry of Communication and Information Technology.
-Emerges as the top telecom turnkey services company in the country.
-Board approves for the issue of L series of bonds of Rs.940 million on private placement basis with government of India Guarantee.
-ITI Ltd. declared itself sick under the provisions of Sick Industrial Companies (Special Provisions) Act, 1985, following the erosion of more than 50% of its networth.
-ITI forges alliance with Chinese firm to manufacture CDMA handsets
-ITI enquires on MTNL pact with Huawei
-ITI Ltd, Palakkad, gets Cochin Shipyard Rolling Trophy for industrial safety instituted by National Safety Council, Kerala Chapter, in the engineering industries sector.
-Signs MoU with Alcatel aimed at establishing long-term cooperation for digital subscriber line (DSL) deployment in the Indian market.
– Indian Telephone Industries ties up with France based Alcatel for supply and installation of Bharat Sanchar Nigam’s (BSNL) GSM network in the western region of India.
-Tejas Networks India Ltd, a telecom products company, has signed a five-year technical collaboration agreement with ITI Ltd for its TJ100 series of next-generation Synchronous Digital Hierarchy (SDH) products.
– Registered Office of the Company has been shifted from 45/1, Magrath Road, Bangalore – 560025 To ITI Bhavan, Doorvaninagar, Bangalore – 560016.
-ITI Ltd – Wins Top Telecom Turnkey Company Award -ITI Ltd has appointed Shri Ravi Agarwal, GM-GSM, of the Company as Director-Production on the Board of the Company with effect from October 31, 2006.
-Iti Ltd. has informed that Shri K. T. Mayuranathan, has assumed charge to the post of Company Secretary of the Company with effect from November 20, 2006, in place of Shri K. Ramaswamy, Company Secretary, who had earlier resigned.
-ITI Ltd has informed that Shri. Y K Pandey, Chairman & Managing Director of the Company on Earned Leave from November 01, 2006 to January 31, 2007 (both days inclusive). Shri. Pritam Singh, Director-Marketing, has been appointed as In-Charge Chairman and Managing Director, as conveyed vide DOT letter dated November 03, 2006.
-ITI Ltd. has informed that Shri R. Bandyopadhyay, Addl Secretary (T), Department of Telecommunication, New Delhi and Shri P.K. Tiwari, Director (R&P), Department of Telecommunication, New Delhi have been appointed as part-time Official Directors on the Board of ITI Limited, in place of Shri Pankaj Agrawala, JS, DIT and Shri N. P. Singh, DDG (IP) , DoT respectively.
-ITI Ltd has informed that in pursuance of DoT letter dated August 23, 2007, Shri. S K Chatterjee, Director-HR, of the Company has assumed the charge as Chairman & Managing Director (CMD) on the Board of the Company w.e.f. August 24, 2007 (Forenoon).
-ITI Ltd has informed that Shri. B P Gupta has been appointed as Director-Finance of the Company by the Government of India vide Ministry of Communications and IT letter dated December 31, 2007.
-ITI Ltd. has informed that “Shri K.K. Khurana has been appointed as Director-HR of ITI Limited by the Government of India vide Ministry of Communications and IT letter No. 4-7/2007-Fac-II dated 04.04.2008. He has assumed office on 04.04.2008.”
-ITI Ltd has informed that BIFR vide letter dated March 25, 2008 appointed Shri. C K Koshy as Special Director on the Board of Director of the Company u/s 16(4) of the Sick Industrial Companies (Special Provisions) Act, 1985.
– “ITI notches-up highest turn over in seven years”.
– K. L. Dhingra has been appointed as Chairman and Managing Director.
– Shri Ravi Khandelwal has been appointed as Director-Finance of ITI Limited.
– Shri. N K Srivastava, Sr. DDG (TEC). Department of Telecommunications as Government Director on the Board of the Company.
– Lt. Gen S. P. Kochhar, AVSM, SM, VSM, Signal Officer in-charge, Ministry of Defence and Shri N. K. Joshi, DDG (SU), Department of Telecommunication, New Delhi have been appointed as Government Directors on the Board of ITI Limited.
-ITI Bags National Safety Awards from Ministry of Labour & Employment. -ITI signs MoU with TSSC for special focus on Skill Development in the Telecom Industry.
2014 -ITI signs MoU with Department of Telecommunications. -ITI bags largest Non-RQ order for NFS. -An MoU was signed between M/s. ITI and M/s. HAL for exploring mutually beneficial business opportunities in the manufacturing and service domains.
2015 – ITI Limited celebrated Vigilance Awareness Week – ITI Limited gets “Certificate of Excellence Award -ITI signed MoU with HAL
2016 – Cabinet approves procurement quota to ITI Ltd
Business Standard – Jun 1, 2016
According to the Reservation Quota policy, 30 per cent of the procurement orders placed by BSNL, MTNL and BBNL will be reserved for ITI Ltd for the products manufactured by it and for those outsourced items in which there will be a minimum 5 per cent .
CCEA approves transfer of shares from ITI to SNI Fund
Jul 13 2016
2017 – State-run ITI clocks Rs 1621 crore turnover.
June 2017 :
ITI Limited, country’s premier telecom company, announced the financial results for the year 2016-17 with a profit of Rs 305 crores.
The Board of Directors of the company approved the results for the quarter ended March 31, 2017 and the audited results for the full year ended March 31, 2017 at their meeting held in Delhi.
Company’s total income for the year ended March 31, 2017 was 1,903 crores up from 1,674 crores for the year ended March 31, 2016. Net profit for the period before tax (after exceptional and/or extraordinary items) increased by 21% to Rs 305 crores for the year ended March 31, 2017 as against 251 crores for the previous year.
TAG-ITI Mobile Wallet : TAG-ITI is a Mobile Wallet offering from ITI, the first PSU of independent India under the Ministry of Communications & IT, Govt. of India, to provide “Secure Cashless Payment Services”, as per the DIGITAL INDIA initiative from the Govt. of India. We have the license to offer this solution to various customers from M/s Transaction Analysts (TA) who is our Technology Partner, and an RBI licensed Payment Systems Operator, UIDAI licensed AUA operator and Certification Agency for National Payment Corporation of India.
Install and start using :
1. Download TAG-ITI WALLET from Google play store in your android smart phone.
2. Open the application and register your mobile number and password.
3. After entering all details for registration form, the user will be logged into application & the welcome page appears.
4. Once logged in, user need to validate the EMAIL by entering the OTP received in the Email.
5. On the TOP-Left Corner of the screen you can see your profile.
Unique advantages of TAG-ITI :
Complete Usability covering feature phone users.
OTP based “Pull Money” can be initiated by Merchant for feature phone users.
Feature phone users upon request, can get upgraded to “Smart”.
Customer can request for upgrade to “Agent /Merchant” wallet.
Wallet based Aadhaar mobile update services.
Wallet based Aadhaar cash disbursement services.
Wallet upgrade to Full KYC supported.
ITI Call Center support.
RESOURCES : Dedicated Network Systems Unit (Bangalore, New Delhi, Kolkata, Bhopal, Ambala) . State-of-the-art Manufacturing Plants (Bangalore, Mankapur, Rae Bareli, Naini, Palakkad, Srinagar) . R&D Centre.
PRODUCTS : Cellular Mobile Infrastructule-GSM, WLL-CDMA Switching-OCB-283, ISDN EPABX, IP-TAX, SSTP . Transmission- Satellite, Optical, Microwave, VHF /UHF . Broadband Equipment-ADSL, WiMAX, G-PON, EDWAS . Customer Premises Equipment-IFWT, ADSL Modem, CLI Phones . GSM-FCT (Fixed Cellular Telephone),; WiMAX CPE.
SERVICES : Systems Integration – Telecom, IT . Shared Hub V -SAT Services . Customer Care Service . Installation & Commissioning of Telecom Eqpt like GSM, CDMA, MLLN, Microwave, Optical Fibre, etc. . Pre-warranty & Post-warranty maintenance services for all Products/Projects . Services for all products/projects : . Enterprise businesses like Data Centers etc
Why ITI LTD :
* ITI is committed to the “Make in India” & “Skill India” initiatives of Government of India.
* With the support of Government of India, ITI has upgraded the electronics manufacturing infrastructure to supplement indigenous manufacturing. ITI also plans to explore business opportunities in the IoT, e-Governance, ICT areas in addition to telecommunication, defense projects and also GSM initiative of the Northeast from BSNL.
* Telecom pioneer in India Contributed 50% to the existing national telecom network.
* High impact turnkey specialist.
* Dependable Integrated Logistics Support (ILS).
* Strong in-house R&D.
* ITI Ltd, country’s premier telecom company, announced the financial results for the year 2016-17 with a profit of Rs 305 crores. Company’s total income for the year ended March 31, 2017 was 1,903 crores up from 1,674 crores for the year ended March 31, 2016. Net profit for the period before tax (after exceptional and/or extraordinary items) increased by 21% to Rs 305 crores for the year ended March 31, 2017 as against 251 crores for the previous year.
* As on date ITI has order book of Rs. 1600 Cr. Further, ITI’s loses have drastically come down to 56 crores in 2016-17 from 247 crores in 2015-16 without any government grants which is an incomparable organizational achievement for the company.
* Highlighting the company’s achievement for the year 2016-17, S Gopu, Chairman & Managing Director, ITI Limited said, “I am delighted with the company’s financial performance along with the strategic initiatives the company has taken in last one year. This will allow us to continue to drive strong revenue growth and improved profitability in the coming years.”
* The Board has approved the further issue of equity shares through follow on public offer subject to necessary approvals from the statutory authorities and shareholders for meeting SEBI’s 25% minimum public shareholding compliance requirement and also to meet internal working capital requirement.
* Recently ITI has bagged various orders through competitive bidding including orders from BBNL, BSNL and RailTel for supply of GPON equipment for Government of India’s flagship project “BharatNet”, which is providing broadband facility to over 2.5 lacs Village Panchayats in India. ITI is committed to the Prime Minister’s vision of “Swatch Bharath”.
* This performance is an indication of the company treading on the path of Revival and we are setting much bigger targets to achieve better results in the coming years,” S Gopu, Chairman and Managing Director, ITI said. Gopu said that the company contained losses by introducing prudent financial and austerity measures and due to diversification into new business areas.
* The union cabinet approved the Department of Telecommunications’s proposal for continuing reservation quota for ITI Limited in procurement Amade by BSNL, MTNL and Bharat Broadband Network Limited (BBNL). The nod was given by the Cabinet Committee on Economic Affairs (CCEA) in a meeting chaired by Prime Minister Narendra Modi. According to the Reservation Quota policy, 30 per cent of the procurement orders placed by BSNL, MTNL and BBNL will be reserved for ITI Ltd. “The policy measures shall remain in force for a period of two years,” it said. “Provision of reservation quota from BBNL will provide further boost to the order book of ITI and help in improving its financial health,” the statement said.
Promoter Shareholding : As per the shareholding pattern, the promoters i.e President of India holds 94.80% stake and Governor of Karnataka has 0.06%. In public shareholding, Special National Investment fund holds 1.53% in the company.
Technicals & Price Target :
The stock made a 52 Week high of ₹ 118 on 28th April. Stock had witness profit booking and stock moved back to rs 70 odd levels and was in consolidation mode for some time. We had shared chart in social media @ 69 to buy and it moved smartly till Rs 110.5 within couple of weeks. It has formed a excellent classical technical pattern as same which was formed in ITDC, V2 Retail, Asian Oilfield,etc to name a few picks shared earlier on the basis of the same pattern. We feel that the company is a good buy. This is more a technical pick. One can buy/accumulate & hold with patience for 2 years, for a ultimate target of ₹ 450 i.e return of 5 times from cmp.
DISCLOSURE: We are not holding this stock currently. However we may buy in the near future. The stock views expressed may be biased and for learning purposes, please do your own research before Investing or one may always consult his Financial Advisor Before Investing if any.