Mini Ratna stock specializing in the design, construction, and maintenance of large-scale infrastructure projects jumps up to 2 percent upon receiving two work orders worth ~Rs. 89 Crores from Northeast Frontier Railway.
Price action
With a market capitalization of 19,506 Crores on Friday, the shares of Ircon International Limited rose by 1.50 percent making a high of Rs 213.30 compared to its previous closing price of Rs 207.38.
What Happened
IRCON International Limited specializes in the design, construction, and maintenance of large-scale infrastructure projects, particularly in the transportation sector.
IRCON International Ltd. has announced the execution of two significant MoUs with Northeast Frontier Railway (NFR) for outsourcing TRD maintenance and breakdown attention work under Nine OHE Depots for newly commissioned Overhead Equipment (OHE) and Power Supply Installation (PSI) assets of Tinsukia Division of Northeast Frontier Railway for consideration of Rs. 39 crore.
It also involves Outsourcing of TRD Maintenance & Breakdown attention & related work under 11 Nos OHE Depots of newly commissioned OHE & PSI Assets of Lumding Division of Northeast Frontier Railway for a consideration of Rs. 50 crore taking the total value of two MoU’s worth Rs 89 Crore.
About the company
IRCON International Limited, one of the leading infrastructure companies under the Ministry of Railways, is primarily focused on providing comprehensive infrastructure solutions in the areas of railways, highways, airports, and urban transport systems.
The company specializes in the design, construction, and maintenance of large-scale infrastructure projects, particularly in the transportation sector. With expertise in railway track construction, electrification, signaling, and civil engineering, IRCON has successfully executed projects in India and several international markets.
IRCON also offers turnkey solutions for industrial, commercial, and residential projects, providing a wide range of services, including project management, procurement, and construction supervision.
Orderbook Segmentation
The order book of IRCON International Limited stands at Rs. 24,253 crore as of 30th September 2024. This order book is segmented as follows: 78 percent (Rs.18,959 crore) for Railways, 22 percent (Rs. 5,210 crore) for Highways, and approximately 0.35 percent (Rs. 84 crore) for Others.
Financials
The company’s revenue declined by 19 percent from Rs 3,136.33 crore to Rs 2,538.58 crore in Q2FY24-25. Meanwhile, Net profit declined from Rs 250.73 crores to Rs 205.95 crore during the same period.
Key Financial ratios
IRCON International Limited has an Return on Equity (RoE) of 14.91 percent and a Return on Capital Employed (RoCE) of 12.37 percent. Furthermore, the company’s debt-to-equity ratio is 0.55.
Written by Sridhar J
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