ITI jumps on bagging Defense Ministry project

Shares of state-run ITI Ltd soared 7.3% as the company has signed a ₹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.

At 0115 pm, the ITI stock traded at ₹129.35 apiece, up 3.4% from previous close, while the benchmark Sensex was up 0.5% at 38908.05.

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 fibre network as media. The project includes installation, commissioning and maintenance of telecom equipment like IP/MPLS routers, NMS, mobile nodes, test equipment and civil works for providing complete infrastructure at various sites and rollout of 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 has reported a consolidated net loss of ₹102.29 crore for the June quarter, higher than ₹61.04 crore loss reported in the year-ago period. Consolidated net sales during April-June rose 2.5% year-on-year to ₹165.01 crore.

As of 30 June, the Centre held 90.27% stake in the company. Live Mint