Exclusive | ITI Limiteds CMD RM Agarwal speaks to Anil Singhvi on MoU with Tech Mahindra, Q4 results
ITI Limiteds MoU with Tech Mahindra for electronic manufacturing is historical from the the countrys standpoint, R.M. Agarwal, Chairman and Managing Director (CMD) ITI Limited told Zee Business Managing Editor Anil Singhvi in an exclusive interview today
ITI Limited’s MoU with Tech Mahindra for electronic manufacturing is historical from the the country's standpoint, R.M. Agarwal, Chairman and Managing Director (CMD) ITI Limited told Zee Business Managing Editor Anil Singhvi in an exclusive interview today.
This will be an umbrella MoU where the company will not only manufacture telecom equipment but also tap opportunities in the IT services sector where Tech Mahindra has a presence, Agarwal said.
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The first project that the company will be taking under this MoU will be related to manufacturing of 4G equipment. The requirement is being floated by BSNL and ITI Limited will appear as a lead bidder here, the CMD said. Tech Mahindra will be a technology partner.
The company has state-of-the-art manufacturing plants, he said. The company will soon be officially submitting a proposal to the Department of Telecommunications (DoT) and BSNL.
The company is competent to make equipment in a cost effective manner and this will likely boost its chance to secure orders from the Indian telecom companies, as the government is now pushing for its ‘Aatmanirbhar’ goal in a big way, he said.
It will also work on Smart City projects, he added.
On its Q4 2020 results, Agarwal said that the profit was down in comparison to December quarter on account of the coronavirus pandemic, as the manufacturing units were shut due to the lockdown. He was responding to a question on why the March quarter results were weak for the company.
The company’s endeavour was to maximise the turnover in this quarter, he added.
He however, claimed that the overall FY20 was good for the company as the on-year profit went up by almost 60 percent for ITI Limited. The Profit After Tax (PAT) for the financial year 2019-20 (April-March) stands at Rs 151 cr against Rs 92 cr in 2018-19, he said.
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In the last financial year, the company was EBITDA negative which has changed this year as the company became positive in this financial year, which is after almost 20 years.
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