The shares of Mini Ratna stock specializing in the design, construction, and maintenance of large-scale infrastructure projects jumped up to 2 percent upon receiving two work orders for Rs. 726.3 Cr.
Price action
With a market capitalization of 17,611.16 Crores on Monday, the shares of Ircon International Limited rose by 2.2 percent making a high of Rs 193.20 compared to its previous closing price of Rs. 189.00.
What Happened
IRCON International Limited engaged in the design, construction, and maintenance of large-scale infrastructure projects has received two work orders for Rs. 726.3 Cr.
The first order is tan EPC contract in a joint venture with AMRIL (74 percent) and (IRCON 26 percent) for the construction of rigid pavement and lined drains on 111.182 km of roads under the Imphal South Division. The contract, awarded by the Public Works Department, Manipur, valued at Rs. 531.9 crores, with Ircon’s share being Rs. 138.29 crores and the project is to be completed within 36 months.
Additionally, the second order they received was a domestic work order worth Rs. 194.46 Crores from Central Railway. The order is for supply, installation, testing, and commissioning of 665 towers for Kavach and is to be executed within 14 months.
Kavach is an advanced train collision avoidance system developed by Indian Railways to enhance safety. It uses real-time communication and signaling technology to prevent train accidents by automatically applying brakes when necessary.
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. With expertise in railway track construction, electrification, signaling, and civil engineering, IRCON has successfully executed projects in India and several international markets.
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 crore to Rs 205.95 crore during the same period.
Written by Sridhar J
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