ITI Ltd, India's oldest telecom public sector undertaking, has said that it was hit hard by the disruption in supply and constraints in sourcing components from China.
RM Agarwal, CMD, ITI Ltd, “The company saw huge disruption in the sourcing of components from China from the first week of February and later due to lock-down could not ship our finished products to the customers in Maharashtra and Gujarat. This resulted in lower profits and we lost revenues majorly from high margin products.”
The Bengaluru-based telecom equipment manufacturer posted 46.95 per cent lower profit at ₹36.46 crore for the fourth quarter (Q4) of FY20 against ₹68.74 crore in the same period last year.
The company’s total revenue for Q4 was marginally higher at ₹662.91 crore as against ₹646.76 crore posted last year. For the FY20, it was 11.85 per cent higher at ₹2,242.58 crore (₹2,004.84 crore). It posted 63.02 per cent higher profit at ₹150.86 crore against ₹92.54 crore last year.
“As part of diversification, we are gearing up to make ventilators for the armed forces. At the moment we have made five sample pieces and are giving it to DRDO for trials in a week’s time,” Agarwal added. The company has identified Bengaluru for manufacturing 5,000 units a year and later depending on the needs it will be scaled-up to make 20,000 units spread across our four plants across India.”
The company has taken a number of initiatives on improving business prospects by transformed 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 & telecom equipment manufacturing,” Agarwal said.