This railway stock engaged in infrastructure development, focusing on railway, road, and EPC projects, delivering quality construction solutions both domestically and internationally, jumped 9 percent after securing an order worth Rs. 1096.17 crore from the Directorate of Urban Affairs, Government of Meghalaya.
Stock Price Movement:
With a market capitalization of Rs. 13,849.09 crores, the share of Ircon International Limited has reached an intraday high of Rs. 150.45 per equity share, rising nearly around 8.82 percent from its previous day’s close price of Rs. 138.25. Since then, the stock has retreated and is currently trading at Rs. 147.25 per equity share.
What Happened
IRCON has received a new EPC contract from the Directorate of Urban Affairs, Government of Meghalaya, for the construction of a new secretariat complex with campus infrastructure in New Shillong City. The total project value is approximately Rs. 1,096.17 crore and is expected to be completed within 36 months.
Order Book:
The company’s current order book is valued at around Rs. 22,000 crores. Of this, 53 percent comes from competitive bidding, while 47 percent is through nominations. The majority of the orders, about 90 percent, are domestic, with the remaining 10 percent from international projects.
Future Guidance:
The company has projected revenue of approximately Rs. 10,000 crores for FY2026, though PAT margins are expected to reduce to 5 percent due to rising competition. For FY2025, order inflows are estimated at Rs. 2,700 crores, with an extra Rs. 1,000 to Rs. 1,200 crores likely by the end of the year.
Revenue for FY2025 is expected to be between Rs. 10,000 to Rs. 11,000 crores for standalone operations, while PAT margins are forecasted to decline to around 6 percent, down from 7.12 percent last year.
Strategic Focus:
The company is focusing mainly on railway and road projects, with a growing interest in EPC projects within the road sector. To stay flexible in changing market conditions, the management is also looking to expand into different types of projects.
Recent quarter results:
Ircon International Limited’s revenue has decreased from Rs. 2,930 crore in Q3 FY24 to Rs. 2,613 crore in Q3 FY25, which has dropped by 10.82 percent. The net profit has decreased by 64.90 percent from Rs. 245 crore in Q3 FY24 to Rs. 86 crore in Q3 FY25.
Written By – Nikhil Naik
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