The shares of this PSU stock primarily focusing on large and technologically complex infrastructure projects in various sectors jumped 6 percent after receiving an order of Rs 127.8 crore from North Western Railways.
Stock Performance
With a market capitalization of Rs 14,751.99 crore, IRCON International Ltd jumped nearly 6 percent in Tuesday’s trading session to a high of Rs 158 per share compared to its previous closing price of Rs 149.60. The shares retraced from the day’s high and were trading at Rs 156.85 which is 4.8 percent higher than the previous close.
What Happened
Ircon International Ltd has secured a work order of Rs 127.8 crore from S&T (Construction), North Western Railway, Indian Railways, for the design, manufacture, supply, installation, testing, and commissioning of a microprocessor-based EI system at 20 stations of the Ajmer Division.
The scope of the project also includes Automatic Block Signalling and associated indoor & outdoor works of Signalling & Telecom Systems or gears. The order is to be executed within 24 months from the date of issue of Letter of Acceptance (LOA).
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Company Overview
Ircon International Limited is an integrated engineering and construction PSU which started as a railway construction company. They now specialise in large-scale, technologically advanced infrastructure projects across sectors like railways and highways. Ircon has operations in several Indian states and abroad including Malaysia, Nepal, Bangladesh, Mozambique, Ethiopia, Afghanistan, the United Kingdom, Algeria and Sri Lanka.
Financial Performance
When looking at the latest financials, the company reported a 11 percent decline in revenue from Rs 2,930 crore to Rs 2,613 crore in Q3 FY24-25. This was accompanied by a sharp 65 percent fall in net profits from Rs 245 crore to Rs 86 crore during the same period.
Order Book Analysis
As of December 2024, Ircon International had an order book of approximately Rs 21,940 crore. Segment-wise, a majority of these orders were from railways and highway projects.
Written by Shwetha Sairam
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