ITI reported December quarter numbers that looked good. Revenues in the quarter grew 47 percent on a year-on-year (YoY) basis at Rs 828 crore. The company reported margins of 7.8 percent in the quarter, while in the comparable quarter of last year, it had reported an EBITDA loss. The company also reported profit after tax of Rs 168.25 crore, which includes higher other income.

Optimistic on the business outlook going forward, the Chairman and Managing Director of the company RM Agarwal said revenue target for Q4 is much higher than Q3 because total MoU target with the government of India stand at Rs 3,500 crore and the company has achieved around Rs 1,600 crore so far. They aim to achieve the rest, he said.

The revenues will be led by high value projects from BharatNet, Gujarat Net and Maharashtra Net. "The total value is two projects is around Rs 3,700 crore. Out of this Rs 3,700 crore, we shall be completing around Rs 2,000 crore from these two projects only during this financial year,” Agarwal said, adding that around Rs 400 crore turnover will come from manufacturing, while Rs 600-700 crore would come from other projects in different parts of the country through marketing, services and project unit.

Speaking about the current order book, he said, “Confirmed order book at the end of the second quarter was around Rs 7,200 crore. Already we have achieved Rs 900 crore turnover from this order book. So, around 6300-6400 crore is the remaining confirmed order book. Around Rs 7,400 crore is the order book in which we are L1.”

“We will go for 42-45 percent revenue growth in FY21 also. The same type of growth we will maintain in the next few years, as per the MoU targets,” he added.

When asked about receivables, he said, for FY19 their receivables were around Rs 2,600 crore and they have now gone up to Rs 3000 crore for FY20. The company has received around Rs 1000 crores, while the turnover is around Rs 1,600. Agarwal does not see any risk to their outstanding receivables.