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Last Updated : Jun 26, 2020 07:43 PM IST | Source: PTI

ITI Ltd Q4 profit drops 47% to Rs 36.4 crore

For the full fiscal 2019-20, ITI posted a 63 per cent jump in consolidated profit at Rs 150.86 crore compared to Rs 92.54 crore in 2018-19.

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State-run electronics manufacturing firm ITI Ltd on Friday posted a 47 per cent drop in consolidated profit at Rs 36.46 crore for the March quarter on account of COVID-19 disrupting the supply chain. The company had reported a profit of Rs 68.74 crore in the same period a year ago.

"The manufacturing operations completely stopped from March 22. The impact of coronavirus was there on the supply chain at the beginning of March.

"Components from China and neighbouring countries could not be sourced due to COVID-19 crisis. Many high margin products that were ready could not be shipped because of the lockdown," ITI Limited Chairman and Managing Director R M Agarwal told reporters.

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Revenue increased by 2.4 per cent to Rs 662.91 crore from Rs 646.76 crore in the corresponding period of the preceding fiscal.

For the full fiscal 2019-20, ITI posted a 63 per cent jump in consolidated profit at Rs 150.86 crore compared to Rs 92.54 crore in 2018-19.

Revenue rose 12 per cent to Rs 2,242.58 crore, from Rs 2,004.84 crore in the preceding financial year.

The company expects revenue contribution from manufacturing to double in the current fiscal.

"We have signed an agreement with DRDO for making ventilators. The ventilators will be ready in a week for trial. We will begin mass manufacturing of ventilators after the trials. Trials may take around 6-8 weeks' time," Agarwal said.

He said ITI's facility in Bengaluru has the capacity to make 5,000 ventilators per month.

Production can be scaled up to 20,000 units by utilising capacities in other ITI units, based on the demand.

"We have also submitted a proposal to develop a cluster under the government's EMC 2.0 scheme for which the minimum land requirement is 200 acres.

"We have already floated RFP (request for proposal) for units willing to invest in ITI cluster and will gradually float several other RFP for attracting various kinds of units in the cluster," Agarwal said.

Under the Modified Electronics Manufacturing Clusters (EMC 2.0) scheme, entities get an incentive of 50 per cent of the project cost with a limit of Rs 70 crore per 100 acres.

"We have taken a number of initiatives on improving business prospects by transforming strategy for manufacturing, marketing and management of projects.

"We are also positioning the company in the upcoming areas of 4G upgradable to 5G manufacturing, manufacturing of IoT-based products and services, IT and telecom equipment manufacturing," Agarwal said.

The company also announced a partnership with Tech Mahindra to jointly work in the areas of 4G and 5G networks, smart cities and healthcare services.
First Published on Jun 26, 2020 07:42 pm
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