Home / Markets / Stock Markets /  ITI Ltd jumps 19% on reports BSNL, MTNL barred from using Chinese 4G equipment

MUMBAI: Shares of state-owned telecom equipment company ITI Ltd soared 19.4% on Thursday, amid heavy volumes, on reports that the Department of Telecom (DoT) has barred Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam (MTNL) from using Chinese equipment for 4G upgradation.

At 1245 pm, the stock was at 104.15, up 15.2% from previous close, while the benchmark Sensex was up 0.7% at 33741.84.

The stock has rallied 32% in the last two days. Since the beginning of the year, shares have surged 12.6% compared to an 18.2% decline in the Sensex.

In April, the Defence Research and Development Organisation wanted ITI to manufacture portable ventilators and transferred technology to come up with a final product after due test procedures. As of December 2019, ITI has a strong order book worth about 20,000 crore.

The public sector firm reported a net profit of 168.25 crore for the quarter ended December, up 12 times from 13.58 core in the year-ago period. Net sales grew 47% to 827.95 crore in the period.

ITI is a state-owned electronics product manufacturer under the DoT that produces radio modems, optical networks, smart metres, and Wi-Fi access points, with the defence sector contributing to a third or nearly 35% to its overall revenue.

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