This stock engaged in construction and infrastructure services, primarily in the railway sector, was in focus in the day’s trade, followed by revision in work order. In this article, we will see what has happened and how it will make an impact.
Price Movement
With a market capitalization of Rs 15,528 crore, the shares of Ircon International Ltd are currently trading at Rs 165 per share, down by 53 percent from its 52-week high of Rs 352 per share. During the last one year, the stock has given a negative return of 32 percent.
About the announcement
On Thursday, the company announced the sanction of a variation order from Indian Railways dated 20th February, 2024 Northeast Frontier Railway has sanctioned a modification to the contract with Ircon International Limited.
The contract is for providing, installing, testing, and commissioning communication systems and network infrastructure, including cables, for tunnels and stations in the Jiribam-Khongsang section of the Jiribam-Imphal Railway Project. The value of the contract has been raised from Rs 144.17 crores to Rs 203.61 crores. Thus, making a variation of Rs 59.44 crores.
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Financial Highlights
The company reported a revenue of Rs 2,613 crores in Q3 FY25, down by 10.8 percent from its Q3 FY24 revenue of Rs 2,930 crores. It posted a net profit of Rs 86 crores in Q3 FY25, down by 65 percent from its Q3 FY24 net profit of Rs 245 crores. It has an ROE and ROCE of 16.4 percent and 18.2 percent respectively and is trading at a P/E of 20.33x as compared to its industry average of 21.64x.
About the company
Ircon International Limited offers a variety of construction and infrastructure services, primarily in the rail sector. It constructs new railway tracks, renovates existing ones, and undertakes electrification, signaling, and telecommunication projects.
It also builds roads, highways, bridges, airports, and other commercial and residential structures. Additionally, it provides turnkey project solutions, design, supply, and commissioning, and is engaged in renewable energy, electrification, leasing, and maintenance of locomotives.
Written by Satyajeet Mukherjee
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