ITI is a Govt organization and a perennially sick unit. The company makes, services and trades in telecom equipments and obviously, it is not doing well with the cost structure exceeding the revenue earned.

For Q1FY17, the company, on a net revenue of Rs.325 crore, had a total operating cost of Rs.364 crore; naturally loss was a given. But thanks to an exceptional income of Rs.55 crore, which is probably a part of the Rs75 crore grant received from the Govt, it managed to end the quarter with a net profit of Rs.11 crore.

Obviously, the market is not happy and the stock slumped down over 4% at Rs.27 levels. The Govt holds 90% stake, making one wonder all over again, why we allow so much good money to chase bad money.