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Tamil Nadu Telecommunications Ltd is on a turnaround with a major order from BSNL.
It is also in talk with other telecom companies to set up new plants to diversify its product line and also expand its existing facility in Maraimalai Nagar.
The company will supply 3,206 km of 24 optical fibre cables to BSNL. This project is valued at Rs 16 crore. There could be an increase in the value due to increase of excise duty announced in the budget.
The company will fulfil the order in eight months. This will ensure that the company's performance is in black in the first half of the year. For the year ended March 31, 2011, the company reported a net loss of Rs 6.48 crore on revenue of Rs 14 crore.
Tamil Nadu Telecom is a three way joint venture of Telecommunications Consultants India Limited, Tamil Nadu Industrial Development Corporation Limited and Fujikura Limited of Japan. In 1998 the company embarked up on diversification of its products range with the manufacture of the fibre cables, in technical collaboration with Fujikura, a leading manufacturer of optical fiber products.
Tamil Nadu Telecom expects to get a sizeable order from the National Optic Fiber Network project of the government. The project is expected to commence in August or September with plans to install 5 lakh km of optical fibre cables in the next 18 months.
Meanwhile, the company in a statement to the Bombay Stock Exchange has said that the State government has transferred 2.98 hectares of land at the CMDA Industrial complex in Maraimalai Nagar to the company. Out of the total 3.97 hectares of land, 2.38 hectares are vacant land and the company is exploring the possibilities of diversification.
The company's performance in 2011-12 was not good due to lack of orders. The optical fibre cable market in India was also in a dull phase in the year. However, in the tender floated by BSNL, the company was at L2 position after e-reverse auction.
The company's stock priced closed at Rs 3.84, an increase of 1.59 per cent over previous day's closing price.
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