Shares of Indian Telephone Industries Ltd (ITI) hit the lower circuit of 5% on February 14, 2025, trading at ₹270.15 per share on the National Stock Exchange (NSE). This sharp decline came despite the company reporting a significant reduction in net loss and a massive 300% revenue surge in Q3 FY25.
While the company’s net loss narrowed to ₹48.9 crore from ₹101.25 crore in Q3 FY24, its revenue skyrocketed 299.68% YoY to ₹1,034.54 crore. However, higher expenses and operational challenges remain concerns for investors.
Despite the impressive revenue growth, market sentiment remained bearish, causing the stock to hit the lower circuit.
ITI Q3 FY25 Financial Performance
📌 Net Loss: ₹48.9 crore (vs. ₹101.25 crore in Q3 FY24)
📌 Revenue: ₹1,034.54 crore (+299.68% YoY)
📌 Total Expenses: ₹1,121.82 crore (+200.62% YoY)
📌 EBITDA Loss: ₹10.6 crore (vs. ₹43.5 crore in Q3 FY24)
The PSU’s sharp revenue growth was accompanied by higher costs, limiting profitability improvements.
Key Highlights of ITI’s Q3 Results
- 📉 Net loss narrowed by 51.7% to ₹48.9 crore from ₹101.25 crore YoY.
- 📈 Revenue surged nearly 300% YoY to ₹1,034.54 crore.
- 📊 Total expenses jumped 200.62% YoY to ₹1,121.82 crore.
- 🔻 EBITDA loss reduced significantly from ₹43.5 crore to ₹10.6 crore.
While the company reduced its losses, the stock still fell, likely due to investor concerns over rising expenses and operational efficiency.
Revenue Growth Analysis
🚀 Revenue increased nearly 300% YoY, making it one of the strongest growth quarters in ITI’s recent history.
Factors Behind Revenue Surge:
- Higher demand for telecom infrastructure solutions
- Execution of key government and private sector projects
- Increased contribution from digital transformation contracts
This exceptional revenue performance indicates strong order execution but was overshadowed by concerns over profitability and cost control.
Expense Breakdown and EBITDA Performance
📌 Total Expenses: ₹1,121.82 crore (+200.62% YoY)
📌 EBITDA Loss: ₹10.6 crore (vs. ₹43.5 crore in Q3 FY24)
Key Expense Drivers:
✅ Operational costs surged due to increased project execution
✅ Higher material and labor costs
✅ Rising expenses in telecom manufacturing and infrastructure setup
Despite massive revenue growth, costs increased at a high rate, leading to an EBITDA loss of ₹10.6 crore, though significantly improved from ₹43.5 crore in Q3 FY24.
Stock Performance and Market Reaction
📉 ITI Share Price on Feb 14, 2025 (NSE): ₹270.15 (-4.99%)
Past Stock Performance:
📉 1-Week Change: -11.45%
📉 1-Month Change: -16.35%
📉 6-Month Change: -30%
📉 Year-to-Date (YTD) Change: -30%
The stock has been on a downward trend, losing 30% in the past six months, despite the strong revenue growth in Q3 FY25.
📌 Market Capitalization (as of Feb 14, 2025): ₹26,107.30 crore
Recent Orders and Business Developments
1. Aaple Sarkar Seva Kendra Project (ASSK-GP) – ₹167 Crore
📆 Order Date: January 22, 2025
✅ Project: Set up, operationalize, roll out, and monitor the Aaple Sarkar Seva Kendra (ASSK) in Gram Panchayats in Nagpur.
2. Sambalpur University (Odisha) Wi-Fi & LAN Project – ₹35 Crore
📆 Order Date: January 13, 2025
✅ Project: Installation of Wi-Fi & LAN infrastructure at Sambalpur University in Odisha.
3. Central Railways Integrated Security System – ₹29.14 Crore
📆 Order Date: January 13, 2025
✅ Project: Deployment of an advanced security system across Central Railways.
Total new contracts in January 2025 = ₹231 crore
These contracts highlight ITI’s strong presence in the government sector, providing telecom, security, and digital infrastructure solutions.
Future Outlook for ITI Limited
Despite the challenging stock performance, ITI remains a key public sector enterprise in telecom and digital infrastructure.
Growth Opportunities for ITI Limited:
✔ Expansion in 5G and telecom infrastructure projects
✔ More government-backed digital initiatives
✔ Smart city and security system projects
✔ Increased focus on digital transformation in public institutions
However, the company must focus on cost management and improve profitability to regain investor confidence.
About ITI Limited
ITI Limited is a state-owned telecom company engaged in:
✔ Manufacturing telecom and networking equipment
✔ Providing digital infrastructure solutions
✔ Offering government-backed telecom services
As one of India’s oldest telecom PSUs, ITI continues to expand its footprint in digital transformation and security solutions.
🔹 Key Business Areas:
✅ Telecom Manufacturing
✅ Digital Infrastructure & Security Solutions
✅ Government IT Projects & Smart Cities
Conclusion
ITI Limited’s Q3 FY25 results showed strong revenue growth but investors remained cautious due to rising expenses and profitability concerns.
✔ Revenue surged 300% YoY to ₹1,034.54 crore
✔ Net loss reduced by 51.7% to ₹48.9 crore
✔ EBITDA loss improved but still negative at ₹10.6 crore
✔ Stock hit 5% lower circuit due to bearish sentiment
Going forward, ITI must focus on improving cost efficiency and profitability to ensure sustainable growth and stock price recovery.
Read more news on NiftyNews
