ITI LTD

GENERAL OVERVIEW
ITI Limited, a public sector undertaking in the telecommunications technology segment.
Indian Telephone Industries Limited, commonly known as ITI Limited, is a Central Government-
owned manufacturer of telecommunications equipment in India. It was founded in 1948, and today
has six manufacturing facilities which produce a range of switching, transmission, and access and
subscriber premises equipment. [1] It is headquartered at Bengaluru . It has six Manufacturing Units
and eight Regional Offices across India.

The main reason I have chosen this company because it is owned by the government and I want to
know how it is operated and managed.

MANAGEMENT OF THE COMPANY

A Gnanasekaran Chief Vigilance Officer

A K Bajoria General Manager

Akhilesh Dube Independent Director

Asha Kumari Jaswal Independent Director

D Venkateswarlu Director - Production

E K Jayashree General Manager

I A Khan Deputy General Manager

K P Raghunathan General Manager

K R Shanmugam Independent Director

K V Suresh General Manager

Mayank Gupta Independent Director

Rajan Vidyarthi Independent Director

Rajeev Sabherwal Government Nominee Director

Rajeev Srivastava Chief Financial Officer

Rajesh Sharma Government Nominee Director

Rajiv Seth General Manager

Rakesh Mohan Agarwal CEO

Rakesh Mohan Agarwal Chairman & Managing Director

S Shanmuga Priya Co. Secretary & Compl. Officer

S Shanmuga Priya Secretary

Sanjay Satyapriya General Manager

Shashi Prakash Gupta Director - Human Resources

V B Singh General Manager

RAKESH MOHAN AGARWAL -CEO

Rakesh Mohan Agarwal was appointed the CMD of ITI Limited in October 2019. A
postgraduate in electronics and communications and an MBA, Agarwal joined
the Indian Telecommunication Service in 1986. He has about 33 years of rich
experience in policy formulation, standardisation planning, and operations and
maintenance of telecom networks in different organisations of the Department of
Telecommunications (DoT).

He began his career in around 1988-89 when he took up the job of installing
telephone exchanges in remote areas. He installed the first telephone
exchanges in places like Solan and Kasauli in Himachal Pradesh. “The
excitement of the villagers making their first phone call is something I won’t
forget. However, since then, the telecom landscape has transformed
completely.  Now you can call whenever you want and talk to anyone in the
world. But, this change has its own implications as we don’t have the time to
talk to those around us because we are glued to our phones,” says Agarwal.
Being an incredibly dynamic industry, several new advancements have been
made, whatsApp being one of them. Talking of WhatsApp, Agarwal says that he
asks his granddaughter about the use of the same but doesn’t use it much.

Policy formulation is another area to which Agarwal has contributed greatly. He

worked as deputy director general (networks and technologies), DoT, where he
was involved in policy formulation for the adoption and implementation of new
technologies such as IPv6, M2M and cloud computing by the telecom and IT
industry.

Currently, with his work, Agarwal is committed to helping the ITI, which has
witnessed several ups and downs, regain its glory as a telecom pioneer. After
having incurred losses for a long period, under his aegis, ITI has turned profitable
and is aiming for  earning profits from 2020-21 onwards. For Agarwal, the next
challenge would be to make this growth sustainable by keeping the order book
healthy. “I have to make some changes so that in a dynamically changing
 environment, we can retain leadership and deploy new technologies to help the
company regain its glory,” says Agarwal.

Agarwal will be serving ITI till 2022 and wants it to be the best public sector
undertaking in the country. He wants it to be best performing companies in
manufacturing, and in exporting, keeping its employees satisfied and well
rewarded.

STRENGTHS
Company with high TTM EPS Growth
Good quarterly growth in the recent results
Growth in Net Profit with increasing Profit Margin (QoQ)
Increasing Revenue every quarter for the past 2 quarters
Increasing profits every quarter for the past 2 quarters
Strong cash generating ability from core business - Improving Cash Flow from operation for last 2 years
Book Value per share Improving for last 2 years

WEAKNESS
Annual EPS declining for last 2 years
Major fall in Annual EPS
Negative Breakdown First support (LTP < S1)
Weak performer : Stock lost more than 20% in 1 month
Weak Momentum: Price below Short, Medium and Long Term Averages
Highest fall from 52 Week High

OPPURTUNITIES
Companies that saw improvement in net profits, operating profit margin and revenues in the m

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 THREATS
Stocks with Expensive Valuations according to the Trendlyne Valuation Score
Increasing Trend in Non-Core Income
RSI indicating price weakness
Companies with high market cap, lower public shareholding

THE ABOVE SHOWS SHAREHOLDINGS OF ITI LTD.

COMPETITORS
HFCL LTD
HFCL Ltd., incorporated in the year 1987, is a Small Cap company (having a market cap of Rs 1202.18
Crore) operating in Telecommunications sector.
HFCL Ltd. key Products/Revenue Segments include Telecom Products which contributed Rs 981.09
Crore to Sales Value (22.47 % of Total Sales), Export Incentives which contributed Rs 4.00 Crore to
Sales Value (0.09 % of Total Sales) and Scrap which contributed Rs 1.60 Crore to Sales Value (0.03 % of
Total Sales)for the year ending 31-Mar-2019.
For the quarter ended 31-12-2019, the company has reported a Consolidated sales of Rs 853.47 Crore,
down -12.87 % from last quarter Sales of Rs 979.52 Crore and down -30.09 % from last year same
quarter Sales of Rs 1220.88 Crore Company has reported net profit after tax of Rs 45.92 Crore in latest
quarter.
The company’s top management includes Dr.Ranjeet Mal Kastia, Dr.(Ms.)Tamali Sen Gupta, Mr.Arvind
Kharabanda, Mr.Bharat Pal Singh, Mr.Mahendra Nahata, Mr.Mahendra Pratap Shukla, Mr.Ranjit
Anandkumar Soni, Mr.Surendra Singh Sirohi. Company has Oswal Sunil & Co. as its auditors As on 31-
12-2019, the company has a total of 1,284,377,194 shares outstanding.
VALINAT COMMUNICATIONS
Valiant Communications Ltd., incorporated in the year 1993, is a Small Cap company (having a market
cap of Rs 10.84 Crore) operating in Telecommunications sector.
Valiant Communications Ltd. key Products/Revenue Segments include Telecom Equipments which
contributed Rs 22.60 Crore to Sales Value (98.74 % of Total Sales) and Sale of services which
contributed Rs .29 Crore to Sales Value (1.25 % of Total Sales)for the year ending 31-Mar-2018.
For the quarter ended 31-12-2019, the company has reported a Consolidated sales of Rs 4.50 Crore, up
10.79 % from last quarter Sales of Rs 4.06 Crore and down -12.79 % from last year same quarter Sales
of Rs 5.16 Crore Company has reported net profit after tax of Rs -.51 Crore in latest quarter.
The company’s top management includes Mr.Avinash Verma, Mr.Davinder Mohan Sood, Mr.Gaurav
Kaura, Mr.Inder Mohan Sood, Mr.Sumit Mehta, Ms.Neepa Chatterjee. Company has B Aggarwal & Co. as
its auditors As on 31-12-2019, the company has a total of 7,223,460 shares outstanding

CONCLUSION
ITI Ltd is still improving and has a very good management team. The revenues have increased.
The share price is currently 50.35.It even won an award last year. Its been there in the market
since 1948.